Bitcoin retreated to $85,000, erasing gains from last weekend’s U.S. crypto reserve hype sparked by President Donald Trump.

Crypto markets reversed course after approximately $330 billion flowed into Bitcoin (BTC) and other digital assets on Sunday, March 2, marking one of the strongest daily increases ever recorded for cryptocurrencies.

The total crypto market capitalization fell more than 10%, dropping to $2.9 trillion after previously surging to $3.2 trillion. Bitcoin’s 8% decline below $85,500 amid a broad market sell-off wiped out all the Trump-fueled gains from the weekend.

The U.S. President had announced plans for a multi-asset national crypto reserve, briefly uplifting digital asset prices.

The crypto market rally faded during trading hours on Monday, March 3, with altcoin prices sliding back to pre-weekend levels. Major coins like Ethereum (ETH), (XRP), Solana (SOL), and Cardano (ADA) posted double-digit losses in 24 hours. 

Stock markets also took a hit as President Trump reaffirmed tariffs on Canada and Mexico, set for enforcement on March 4. The Dow Jones Industrial Average and S&P 500 indices shed 1.48% and 1.76% but the tech heavy Nasdaq index lost 2.64%.

Crypto-related stocks faced heavily selling pressure. Crypto broker Coinbase Global (NASDAQ: COIN) lost 4.58% while rival Robinhood (NASDAQ: HOOD) was down 6.41%. MicroStrategy’s (NASDAQ: MSTR) stock fared better, down 1.77%.

The market flush also closed on-chain leveraged positions. Per CoinGlass, crypto liquidations crossed $800 million in the past day and closed on the $1 billion mark. Previously, crypto.news reported that Bitcoin’s price may fall below $86,000 due to a gap in the CME BTC futures and tepid demand indicated by lackluster open interest. The gap has now closed according to TradingView charts.