Crypto traders are grappling with disappointment after President Donald Trump’s announcement regarding the U.S. government’s strategic crypto reserve failed to live up to expectations, leaving little hope for immediate market relief.
In the past 24 hours, major cryptocurrencies including XRP, Dogecoin (DOGE), and Cardano (ADA) have dropped as much as 9%. The declines came after Trump directed the creation of a Bitcoin Strategic Reserve, which will consist of Bitcoin (BTC) seized by the government, alongside a separate “crypto stockpile” for other assets seized through criminal and civil proceedings.
This move dashed the optimism surrounding the inclusion of other major tokens like XRP, ADA, Ether (ETH), and Solana (SOL) in the reserve. Traders had hoped that these tokens might be part of the reserve, boosting their value, but instead, only assets already in the government’s possession will be added to the reserve, leaving no room for fresh purchases.
Earlier in the week, DOGE had rallied by up to 12%, driven by the filing of Bitwise’s DOGE exchange-traded fund (ETF) with the SEC. Some traders had speculated that DOGE could be included in the reserve, but that hope evaporated with the latest announcement, contributing to the token’s recent decline.
Bitcoin, the centerpiece of the reserve, was also affected, falling by 4.5% from a 24-hour high above $93,000 to below $88,000. The broader CoinDesk 20 index, tracking the top cryptocurrencies by market cap, lost 5%, while smaller altcoins saw drops of up to 10%.
The downturn resulted in over $400 million in liquidations across crypto futures positions, with $230 million of that linked to Bitcoin-based products.
With the White House Crypto Summit scheduled for March 7, traders are cautiously awaiting potential announcements, though there’s a general sense of skepticism.
“Expectations have been lowered after the strategic reserve announcement failed to provide the hoped-for market support,” said Nick Ruck, director at LVRG Research. “Trump hasn’t indicated any substantial changes for the summit, so the market remains in a risk-off posture.”
Despite some optimism for surprise announcements at the summit, especially with blockchain industry leaders and key government officials in attendance, traders are wary of further disappointment. As the market watches closely, the focus remains on the potential for long-term shifts in the government’s stance on digital assets.
