Investing.com-- Bitcoin cut some losses Tuesday, as dip buyers bought the recent slump in the popular crypto.
The world’s largest cryptocurrency fell 2.7% to $87,819 at 2:28 p.m. ET (19:38 GMT). Bitcoin had fallen to a low of $81,617 in the session.
Bitcoin cuts losses on dip buying
Dip buyers emerged to help the popular crypto move off session lows even as the uncertainty about the tariffs persisted.
Bitcoin and broader crypto markets had risen sharply on early Monday after Trump outlined five cryptos, including Bitcoin and Ether, which will be included in a national crypto reserve.
But Trump did not clarify just how this reserve will be formed, and how his administration will fund purchases of crypto. While the 47th president has signed executive orders to explore a regulatory framework for crypto, little is known about what this framework will entail.
Uncertainty over Trump’s crypto policies largely soured enthusiasm around his promises of a reserve.
Trump’s decisions to launch cryptos themed around him and his family have also garnered mixed reactions, given that the cryptos have largely crashed in value. His $TRUMP meme token is trading at a fraction of its post-launch peak a month ago.
Still, Trump is set to host the first White House Crypto Summit on Friday, and could offer up more cues on regulation then. The U.S. President also named a host of pro-crypto appointees for key regulatory positions.
Tariff jitters dent risk appetite
Crypto prices have been on a prolonged losing streak since mid-February, amid increasing anxiety over Trump’s tariff plans. The U.S. President on Tuesday imposed a 20% duty on China and 25% tariffs on Canada and Mexico.
While the tariffs have no direct impact on crypto markets, they severely undermined risk appetite among investors, keeping them averse towards speculative assets. Broader global financial markets also retreated, while safe havens such as the Japanese yen and gold saw buying.
Investors feared that an escalating trade war will undermine global economic growth, especially when several major economies are still struggling with high inflation.
Ark Invest buys Coinbase shares, sells own Bitcoin ETF
In the latest rebalancing, Cathie Wood's Ark Invest bought 38,865 Coinbase Global Inc (NASDAQ:COIN) shares worth $8 million to its Next (LON:NXT) Generation Internet ETF (ARKW) on Monday while selling $8.2 million of its own spot Bitcoin ETF (ARKB).
The move follows a similar rebalancing last week when the firm bought $8.7 million in COIN and offloaded $8.6 million in ARKB—the first such trades since October and September, respectively.
According to Ark’s latest disclosures, Coinbase is now the sixth-largest holding in ARKW, accounting for 6% of the fund, or about $99.1 million as of March 3.
Crypto price today: altcoins follow Bitcoin rebound
Broader crypto prices largely rebounded on Tuesday, wiping out earlier losses.
World no.2 crypto Ether rose more than 2% to $2,167.74, while XRP gained 6% to $2.49.
Solana and Cardano, which were the other two cryptos mentioned by Trump for the reserve, rose 11% and 0.6%, respectively. Polygon gained0.9%.
Among meme tokens, Dogecoin rose around 1%, while $TRUMP gained 1.5%.
Ambar Warrick contributed to this report.