Crypto Market Reverses Gains as ADA, XRP, SOL Plunge 21% Following Trump’s Reserve Plans
The excitement surrounding President Donald Trump’s announcement of a U.S. crypto strategic reserve was short-lived, as major tokens Cardano’s ADA, XRP, and Solana’s SOL crashed 21% on Tuesday, erasing all their recent gains.
The dramatic reversal followed Monday’s rally, when traders initially cheered Trump’s plan to include ADA, XRP, SOL, bitcoin (BTC), and ether (ETH) in the reserve. The news had fueled a frenzy, with ADA soaring 60%, XRP jumping 33%, and SOL gaining 22% within hours.
However, broader market jitters, profit-taking, and macroeconomic headwinds quickly erased those gains. Analysts now caution that while the strategic reserve proposal could boost long-term institutional adoption, cryptocurrencies remain highly correlated to risk sentiment in equities.
“Trump’s latest tariff escalations against China, Canada, and Mexico triggered a broad sell-off in risk assets, wiping out the crypto rally from the strategic reserve news,” said Kevin Guo, director of HashKey Research.
China responded to Trump’s decision to double tariffs on Chinese imports to 20% by imposing a 15% tariff on U.S. agricultural goods. The President also confirmed that 25% tariffs on imports from Mexico and Canada took effect Tuesday, adding further pressure on markets.
Bitcoin (BTC) tumbled 9% in the past 24 hours, trading near $84,000 as of the Asian afternoon session, while ether (ETH) slid 12%, falling to just above $2,000—its lowest level since 2023.
With a White House Crypto Summit set for Friday, investors are bracing for either a new wave of volatility or much-needed clarity on the administration’s crypto policy.
