Bitcoin dropped to $85,000 as markets reacted to U.S. President Donald Trump’s confirmation that new tariffs on Canada and Mexico will take effect on March 4, according to Cointelegraph. The announcement triggered a downturn in stocks and risk assets. This pushed the S&P 500 and Nasdaq lower, while the U.S. Dollar Index (DXY) gained 0.6%.
Crypto analysts noted that Bitcoin’s decline was tied to its growing correlation with traditional markets. The Kobeissi Letter pointed out that investors were shifting into the dollar, calling it “the safest risky asset” during trade wars. Meanwhile, U.S. spot Bitcoin ETFs saw six straight days of outflows, totaling $2.1 billion, with retail investors leading the sell-off.
Bitcoin Whale “Spoofy” Accumulates as Price Drops
While retail traders fled, a Bitcoin whale known as “Spoofy” accumulated 4,000 BTC worth $344 million, according to CryptoQuant. Spoofy has a history of buying heavily during market crashes, having acquired 70,000 BTC during the FTX and Luna collapses
New Investors Take the Biggest Losses
Data from Glassnode showed that recent Bitcoin buyers are realizing major losses, with over $2.16 billion in sell-offs coming from short-term holders. In contrast, long-term holders have barely flinched, reinforcing the idea that panic selling is often a “noob mistake,” as CryptoQuant founder Ki Young Ju put it.
As Bitcoin struggles, traders are now watching the CME futures gap near $77,000. This makes many wonder whether a further drop is on the horizon. At the time of writing, Bitcoin is sitting at $85,686.35.
