Bitcoin (BTC) price plunges from $93,700 to $89,250, wiping out half of the previous day's gains

The drop likely triggered panic among traders as S&P 500 index futures fell 1% following China's announcement of retaliatory measures against the United States' additional 10% import tariffs.

Bitcoin (BTC) price dropped from $93,700 to $89,250 in less than an hour on March 3, erasing half of the previous day's gains. The decline, which occurred as S&P 500 index futures fell 1% following China's announcement of retaliatory measures against the US's additional 10% import tariffs, may have triggered panic among traders.

However, Bitcoin's chances of reclaiming the $90,000 support remain high. On March 2, US President Donald Trump stated that Bitcoin and Ether (ETH) would be key components of the country's strategic digital asset reserves. Trump also hinted at revealing further details during the first government crypto summit on March 7.

S&P 500 futures (right, blue) fell 1% on Friday morning, while Bitcoin (left, orange) faced selling pressure as traders booked profits from yesterday's rally.

Source: TradingView/Cointelegraph

The primary driver behind Bitcoin's price drop on March 3 was the excessive expectations fueled by Trump's weekend posts. Investors quickly realized the bureaucratic hurdles involved, including a lengthy approval process and the need for congressional approval.

Moreover, doubts remain over whether the plan would involve actual purchases of these cryptocurrencies.

"Even if, in some remote possibility, Congress speedily approves the strategic digital asset reserve, the key question is how it will be funded," explained James "MetaLawMan" Murphy, a lawyer specializing in crypto legal and business issues, on X.

Most likely, the initial approval would involve pausing government crypto asset sales—an action with limited impact on prices.

Another source of concern for Bitcoin traders came from Michael Saylor's March 2 announcement that Strategy (formerly MicroStrategy) neither issued new shares nor increased its BTC holdings beyond 499,096 in the previous week. Despite no prior indication, some traders had expected the company to "buy the dip."

Crypto trader and analyst RunnerXBT expressed frustration over Strategy purchasing $2 billion worth of Bitcoin at an average price near $97,500 and remaining inactive as BTC dropped to the $80,000 range.

His analysis also suggests that Strategy's Bitcoin purchases above $95,000 could be a net negative for the market, as the previous instance led to only a short-lived rally.

MSTR stock price also shot up by 15% on Friday morning following the strong performance of Bitcoin and other major cryptocurrencies over the weekend.

Despite worsening investor sentiment toward the global economy, Bitcoin is likely to reclaim the $90,000 support as Strategy is expected to continue accumulating BTC through its $42 billion debt and stock issuance plan.

Michael Saylor has never shown an intention to time the market when adding to the company's Bitcoin holdings, suggesting further purchases regardless of price levels.

As for the expectations surrounding the strategic crypto reserves, the timeline remains uncertain, but the long-term impact on Bitcoin's price is likely positive. BTC was designed to thrive in environments where investors perceive excessive stock market valuations or potential real estate corrections.

Given these conditions, the probability of Bitcoin surpassing $95,000 in the near future remains high.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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As the dust settles on an eventful weekend in the cryptocurrency market, Bitcoin (BTC) is showing signs of recovery after a brief decline. S&P 500 index futures fell 1% on Friday morning, while traders continued to react to China’s announcement of retaliatory measures against the US’s additional 10% import tariffs.

This move by China could drive up food and tech costs, disrupt supply chains, and reduce rural incomes, ultimately shrinking US GDP by 0.3% to 1.3%, according to economists. Hedge fund manager Anthony Scaramucci warned that if tensions escalate further, investors should brace for economic pain.

"If we start to see a broader escalation in trade and geopolitical tensions, investors should prepare for a continuation of the market downturn," Scaramucci, founder of Scaramucci's hedge fund, told Bloomberg.

However, Bitcoin is still holding up well, and its chances of reclaiming the $90,000 support remain strong.

On March 2, US President Donald Trump stated that Bitcoin and Ether (ETH) would be key components of the country’s strategic digital asset reserves. Trump also hinted at revealing further details during the first government