The excitement over Trump’s U.S. crypto strategic reserve didn’t last long. Just days after soaring on the news, Cardano (ADA-USD), XRP (XRP-USD), and Solana (SOL-USD) have crashed 21%, erasing all their recent gains. According to CoinDesk, the sharp reversal comes as traders lock in profits and shift to a more cautious stance.
On Sunday, Trump’s announcement sent these tokens skyrocketing. ADA jumped over 60%, XRP climbed 33%, and SOL surged 22% as investors cheered the potential government-backed crypto reserve. But the rally was short-lived. The market quickly turned risk-off as global economic concerns took center stage.
Trump’s Tariffs Add Pressure on Digital Assets
The sudden crash wasn’t just about profit-taking. Trump’s latest tariff decisions added fuel to the fire. According to Bloomberg, the president doubled tariffs on Chinese imports to 20% while confirming 25% tariffs on goods from Mexico and Canada. This triggered a wave of selling across risk assets, including cryptocurrencies.
“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,” said Kevin Guo, director of HashKey Research, in a Telegram message.
Market Braces for More Clarity or More Chaos
With Bitcoin down 9% to $84,000 and Ethereum losing 12% to trade just above $2,000, investors are now looking ahead to the White House Crypto Summit on Friday. The event could provide important insights into regulatory direction and the future of the crypto reserve.
At the time of writing, Bitcoin is sitting at $83,907.98.
