Bitcoin’s price plunged nearly 10 per cent, as an escalating trade war and uncertainty over creation of a United States cryptocurrency reserve fund sent investors running from risk.

After jumping on US President Donald Trump’s talk of creating a national cryptocurrency reserve, bitcoin and similar digital assets dove in the face of concerns it might not actually happen.

“Everything is getting sold,” Forexlive manager Adam Button said, adding: “There’s a de-risking that’s unfolding” among cryptocurrency investors.

Late on Monday, bitcoin was down 9.47 per cent at US$85,321.69 each. There is more than a trillion dollars worth of bitcoin in the largest overall valuation in the cryptocurrency realm.

The second largest digital asset, ether, saw its price drop more than 15 per cent.

Other major cryptocurrencies such as XRP, Cardano and Solana were down by almost 20 per cent.

Weighing on cryptocurrency prices was Trump’s confirmation of 25 per cent tariffs on all products imported to the US from Mexico or Canada, which have already promised to retaliate.