Just days after a massive rally fueled by President Donald Trump’s announcement of a U.S. crypto strategic reserve, major cryptocurrencies Cardano (ADA), Ripple (XRP), and Solana (SOL) have plunged 21%, wiping out all their recent gains.
The initial excitement saw these tokens skyrocket—ADA soared over 60%, XRP climbed 33%, and SOL jumped 22%—as investors welcomed the idea of a government-backed crypto reserve. However, the rally was short-lived, as profit-taking and broader market uncertainty took over.
Why the Market Turned Bearish
The sudden decline comes amid growing macroeconomic concerns, particularly Trump’s decision to impose new tariffs on Canada, Mexico, and China. These geopolitical moves have rattled investors, prompting a sell-off not just in crypto but across global markets.
“Trump’s latest tariff announcements triggered a massive sell-off in crypto, completely reversing the previous day’s gains from the strategic reserve news,” said Kevin Guo, director at HashKey Research.
The risk-off sentiment led to a wider downturn in the crypto market, with Bitcoin falling 9% to $84,000 and Ethereum dropping 12% to just above $2,000—its lowest level since 2023.
What’s Next? White House Crypto Summit Holds the Key
With the White House Crypto Summit scheduled for Friday, investors are eagerly waiting for further details on Trump’s plans for integrating digital assets into the U.S. financial system. Depending on the outcomes of the summit, the market could either stabilize or face further volatility.
For now, traders remain on edge, watching key support levels and preparing for the next big move in the crypto space.
