Monday came with a fresh air of hope and optimism for the general crypto market, as President Donald Trump revealed plans for a US crypto strategic reserve.
By Mayowa Adebajo
Edited by Julia Sakovich
Updated
3 mins read
Major tokens, including ADA ADA $0.65 24h volatility: 1.3% Market cap: $23.43 B Vol. 24h: $838.43 M , XRP XRP $2.06 24h volatility: 1.3% Market cap: $120.31 B Vol. 24h: $4.87 B , and SOL SOL $116.9 24h volatility: 0.7% Market cap: $60.03 B Vol. 24h: $5.32 B , that recently saw their values rise on Trump’s digital assets reserve plan announcement have crashed. This situation has now left investors scrambling for answers.
Monday came with a fresh air of hope and optimism for the general crypto market, as President Donald Trump revealed plans for a US crypto strategic reserve.
Following the American President’s announcement on Monday, Bitcoin, alongside the majority of altcoins, surged significantly in value in what may have reflected the positive mood of the general market.
The excitement of the crypto community even saw many market influencers and traders speculating that Trump’s plan for the reserve to include Bitcoin BTC $83 033 24h volatility: 0.5% Market cap: $1.65 T Vol. 24h: $36.72 B , and Ethereum ETH $1 814 24h volatility: 0.7% Market cap: $219.35 B Vol. 24h: $16.86 B could be a major step toward legitimizing digital assets in the country. Some even believe that these will give more room for institutional adoption of digital assets.
To mention a few, ADA’s value immediately increased by over 60%, XRP climbed 33%, while SOL also jumped 22%.
Surprisingly, however, none of the cryptocurrencies could sustain the massive gains of the previous day. This is, as Monday’s strong rally has now been replaced by a radical decline.
According to Tuesday reports, Cardano (ADA), XRP, and Solana (SOL) have dropped by 21%, meaning that the market has come crashing down just as quickly as it had a remarkable increase. This crash, however, looks to be primarily a result of many investors starting to take profits.
Another reason that could have led to the price reduction is the Australian government’s rejection of digital assets as strategic reserve.
Adding to the selling pressure, President Trump’s latest tariff moves on Canada, Mexico, and China have rattled investors.
China recently responded with a 15% tariff on the US imports on Tuesday after Trump doubled tariffs on Chinese goods to 20%, while adding that 25% tariffs on imports from Mexico and Canada would also take effect the same day.
Speaking about these events, Kevin Guo, director of HashKey Research, stated:
“Despite a slew of pro-crypto deregulation initiatives and supportive policies, investors view cryptocurrencies as risk assets strongly bound by the performance of the US equity market.”
Unfortunately, the global cryptocurrency market is feeling the heat of this unspoken traffic war between the countries.
Coincidentally, the upcoming White House Crypto Summit, scheduled for Friday, has kept many traders and market experts on their toes.
For many, their hopes hang around the possibility that the talks from that summit will bring about a notable policy shift or announcement that would lead to some sort of encouragement or reassurance.
At the time of writing this post, CoinMarketCap data showed that Bitcoin has dropped 8.70% in the past 24 hours, trading at $83,953.88. Ethereum has also declined 10.86% and now trading at $2,096.28.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
