Crypto Market Shock: Trump’s Reserve Promise Vanishes as ADA, XRP, SOL Crash 21% Overnight
Major cryptocurrencies Cardano, Ripple, and Solana experienced a dramatic 21% plunge on Tuesday, completely erasing their recent gains following President Trump’s announcement of a U.S. crypto strategic reserve. The market whiplash came just days after these tokens had soared by as much as 60%, highlighting the extreme volatility in the cryptocurrency space.
The remarkable reversal coincided with growing investor caution after Monday’s enthusiastic market rally, which was triggered by Trump’s ambitious crypto stockpile plan.
On Sunday, Trump had declared that a new government reserve would include ADA, XRP, and SOL alongside bitcoin and ether—a statement that initially sent markets soaring. Cardano’s ADA rocketed over 60%, XRP jumped 33%, and Solana’s SOL climbed 22% within hours of the announcement. Analysts widely viewed the proposal as potentially transformative for cryptocurrency legitimacy and institutional adoption.
However, the euphoria proved fleeting as profit-taking set in and broader equity markets adopted a risk-averse stance.
“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.”
The market downturn intensified after China announced a 15% tariff on various imported items in response to Trump doubling tariffs on Chinese imports to 20%. The U.S. President also implemented 25% tariffs on goods from Mexico and Canada, effective Tuesday.
The broader cryptocurrency market showed similar weakness, with Bitcoin falling 9% over 24 hours to trade around $84,000 during Asian trading hours. Ethereum suffered an even steeper 12% decline, dropping just above $2,000—its lowest point since 2023.
Investors are now looking ahead to Friday’s White House Crypto Summit for clarity on the administration’s plans, with the potential for either market stabilization or further volatility depending on the outcome.
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