Bitcoin, the biggest cryptocurrency, has fallen 21 percent from a January 20 peak and is back to levels seen shortly after Trump’s U.S. presidential election victory in November, as hopes for a strategic bitcoin reserve fade and tariff threats weigh on demand for speculative assets.

Euphoria in digital-asset markets stemming from Donald Trump’s plans for a strategic crypto reserve turned to skepticism on Monday, triggering early losses in cryptocurrencies that worsened throughout the day as investors braced for the US to impose 25% tariffs on Mexico and Canada.

Donald Trump’s announcement of a US strategic crypto reserve, including XRP, SOL, and ADA, initially fueled a rally but was met with skepticism. Crypto markets soon fell, with major tokens losing gains amid doubts over the plan’s feasibility.