Bitcoin Plunges Below $87K as Crypto Markets Reverse Trump Bump Gains

The markets have taken a sharp turn, with Bitcoin dipping below $87,000 and erasing most of the gains sparked by President Trump’s weekend social media post about a U.S. crypto reserve. As of mid-afternoon trading in the U.S., Bitcoin is hovering around $86,700, a level that leaves it only marginally above where it stood before Trump’s Sunday announcement.

The broader crypto landscape isn’t faring much better, with Ethereum sliding beneath its pre-Trump value. Meanwhile, U.S. stock markets are also trending downward as investors brace for impending tariffs on major trade partners like Mexico, Canada, and China.

Trump’s Sunday tease of a forthcoming U.S. crypto reserve had initially fueled optimism across the sector, lifting prices for Bitcoin and other tokens he name checked, including Solana, Cardano, XRP. While these altcoins have relinquished much of their weekend surge, they’re still clinging to modest gains compared to their pre-announcement levels. However, the fleeting nature of this so-called Trump bump underscores the market’s volatility, with sentiment shifting rapidly as broader economic concerns take center stage.

Stock Market Woes and Corporate Fallout

The downturn isn’t confined to cryptocurrencies alone. U.S. equities are feeling the pressure too, with the Nasdaq dropping 1.1% and the S&P 500 shedding 0.8%. This comes as markets digest Trump’s tariff plans, set to roll out imminently against key trading nations.

Crypto related stocks are also reeling, with companies like Core Scientific and Bitdeer posting significant losses after surrendering early Monday gains.