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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.
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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.
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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.
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Rampant speculation on crypto derivatives platforms is fueling volatility and risking bitcoin’s image as a stable hedge, says BlackRock’s digital assets chief.
What to know:
- BlackRock digital-assets chief Robert Mitchnick warned that heavy use of leverage in bitcoin derivatives is undermining the cryptocurrency’s appeal as a stable institutional portfolio hedge.
- Mitchnick said bitcoin’s fundamentals as a scarce, decentralized monetary asset remain strong, but its trading increasingly resembles a "levered NASDAQ," raising the bar for conservative investors to adopt it.
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