Trump’s Crypto Reserve Hype Fizzles as ADA, XRP, SOL Tumble 21%
The market euphoria following President Donald Trump’s crypto reserve announcement quickly faded, with Cardano (ADA), XRP, and Solana (SOL) plunging 21% on Tuesday—completely wiping out the weekend’s rally.
On Sunday, Trump sparked a buying frenzy after revealing that the U.S. government’s proposed strategic crypto reserve would include ADA, XRP, SOL, Bitcoin (BTC), and Ethereum (ETH). Prices soared in response, with ADA gaining 60%, XRP jumping 33%, and SOL climbing 22%.
However, the momentum proved unsustainable as traders took profits and macroeconomic concerns weighed on risk assets.
“The lack of clear execution plans for this reserve led to the sharp pullback,” said Kevin Guo, director of HashKey Research. “Markets don’t like uncertainty, and right now, all we have is speculation.”
Compounding the bearish pressure, Trump’s latest tariff hikes on China, Mexico, and Canada triggered a broad risk-off sentiment. China retaliated by slapping a 15% duty on key U.S. imports, escalating trade tensions further.
Bitcoin (BTC) dropped 9% in the past 24 hours, trading near $84,000, while Ethereum (ETH) sank 12% to just above $2,000—its lowest level since 2023.
Investors are now looking ahead to the upcoming White House Crypto Summit on Friday, hoping for more concrete details on the government’s digital asset strategy. Until then, volatility remains the name of the game.
