Share this article
ADA, XRP, SOL Dive 21% to Reverse All Gains From Trump’s Strategic Reserve Plans
The sharp reversal aligned with a cautious mood among traders after Monday’s market rally following the ambitious plan, as a CoinDesk analysis previously noted.
Updated Mar 4, 2025, 7:53 a.m. Published Mar 4, 2025, 7:13 a.m.
Make us preferred on Google
What to know:
- Major cryptocurrencies Cardano, Ripple, and Solana dropped 21% on Tuesday, erasing gains from a recent surge following President Trump's announcement of a U.S. crypto strategic reserve.
- The initial excitement, which saw these tokens rise up to 60%, was short-lived due to profit-taking and a risk-off mood in broader equity markets.
- The crypto market is further impacted by Trump's tariff announcements on Canada, Mexico, and China, and investors are now awaiting more clarity from the upcoming White House Crypto Summit.
Major tokens Cardano's ADA, XRP, and Solana's SOL plummeted 21% on Tuesday, just days after a dramatic surge fueled by President Donald Trump’s announcement of a U.S. crypto strategic reserve, erasing all gains sparked by the initial excitement.
The sharp reversal aligned with a cautious mood among traders after Monday’s market rally following the ambitious plan, as a CoinDesk analysis previously noted.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Trump’s Sunday declaration that the reserve would include ADA, XRP and SOL, alongside bitcoin and ether ignited a market frenzy, with ADA soaring over 60%, XRP climbing 33%, and SOL jumping 22% within hours.
The promise of a government-backed crypto stockpile was hailed as a game-changer, with analysts predicting it could legitimize digital assets and drive institutional adoption.
However, the rally proved short-lived amid profit-taking and a general risk-off mood in broader equity markets.
“Trump's latest tariff announcements on Canada, Mexico, and China caused a massive selloff of crypto assets, completely reversing the previous day's crypto strategic reserve gains,” Kevin Guo, director of HashKey Research, said in a Telegram message.
“Despite a slew of pro-crypto deregulation initiatives and supportive policies, investors view cryptocurrencies as risk assets strongly bound by the performance of the US equity market.”
On Tuesday, China announced a 15% tariff on the import of various items after Trump, doubled the tariff on imports from China to 20%. The U.S. President also confirmed that 25% tariffs on goods from Mexico and Canada would be effective on Tuesday.
Bitcoin is down 9% in the past 24 hours amid the macroeconomic chaos, trading at $84,000 as of Asian afternoon hours. Ether lost 12% and trades just above $2,000 — its lowest since 2023.
With a White House Crypto Summit scheduled for Friday, investors are now bracing for more clarity — or further turbulence — depending on what emerges from the talks.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Bitcoin’s weakness versus gold and equities puts quantum computing fears back in focus
Some investors have revived concerns that quantum computing could threaten bitcoin, but analysts and developers say recent price weakness reflects market structure.
What to know:
- Bitcoin’s recent price stagnation has sparked a renewed debate over quantum-computing risks, with investor Nic Carter arguing that quantum fears are already shaping market behavior.
- On-chain analysts and prominent investors counter that the slowdown is better explained by large holders taking profits and increased supply hitting the market around the $100,000 level.
- Most bitcoin developers still view quantum attacks as a distant, manageable threat, noting that proposed upgrades like BIP-360 provide a path to quantum-resistant security and are unlikely to explain short-term price moves.
Top Stories
