The price of bitcoin failed to recover the $85,000 level – where it traded before President Donald Trump’s announcement of a U.S. crypto reserve sent it soaring – after a sell-off driven by tariff concerns knocked it down.

Bitcoin was last lower by 2% on Tuesday at $83,508.78, according to Coin Metrics, and off its all-time high by 23%.

Ripple-related XRP and Cardano’s ADA, two of the smaller cap coins mentioned in Trump’s surprise announcement, were still holding onto some of their gains from the rally. Solana’s SOL token also fully reversed its gain.

Shares of Coinbase, Robinhood and Strategy, formerly known as MicroStrategy, were all lower in premarket trading.

Risk assets including cryptocurrencies suffered steep declines on Monday as traders grappled with concerns that proposed tariffs were on track to take effect. That overshadowed the exuberance around Trump’s so named U.S. “strategic crypto reserve,” which some traders had hoped would pull bitcoin out of a slump. After reaching its record in January, it posted its worst month since 2022 in February.

Investors and analysts warn that economic uncertainty could keep its hold on bitcoin throughout March, with the crypto industry absent a specific catalyst. With the idea of a U.S. reserve holding crypto largely priced in, regulatory clarity through clear legislation may be the more likely catalyst to jump start prices in a meaningful way.

“The lack of information on the amount of crypto the U.S. government will buy, and how the purchase will be funded, coupled with fears of a market retreat if expectation does not meet reality, means that the likelihood of high volatility in the crypto markets will continue,” said Deutsche Bank analyst Marion Laboure said in a note Tuesday.

Investors this week will keep an eye on the inaugural White House Crypto Summit, which is scheduled to take place this Friday, for updates on the details of the reserve, as well as the administration’s plans to support the industry.

—CNBC’s Michael Bloom contributed reporting