Trump’s Crypto Reserve Boost Fades as ADA, XRP, SOL Drop 21%, Erasing Rally

Crypto Markets Wipe Out Gains as ADA, XRP, and SOL Plunge 21% After Trump’s Reserve Plan Rally

Just days after soaring on optimism around President Donald Trump’s proposed U.S. crypto strategic reserve, major tokens Cardano (ADA), XRP, and Solana (SOL) reversed course, plunging 21% on Tuesday and erasing all their recent gains.

The sell-off follows a euphoric Monday rally, where Trump’s announcement that the reserve would include ADA, XRP, SOL, bitcoin (BTC), and ether (ETH) sent crypto prices skyrocketing. ADA had surged over 60%, XRP climbed 33%, and SOL gained 22% as investors speculated on the impact of government-backed crypto holdings.

However, momentum quickly faded amid profit-taking and renewed macroeconomic concerns. “Trump’s tariff escalations against China, Mexico, and Canada triggered a broad sell-off in risk assets, dragging crypto down along with it,” said Kevin Guo, director of HashKey Research.

The President announced on Monday that tariffs on Chinese imports would be doubled to 20%, while new 25% tariffs on goods from Mexico and Canada also went into effect, prompting retaliatory measures from China, which imposed a 15% tariff on U.S. agricultural goods.

Bitcoin (BTC) fell 9% in the past 24 hours to trade around $84,000, while ether (ETH) dropped 12%, slipping to just above $2,000—its lowest level since 2023.

With the White House Crypto Summit set for Friday, traders are now looking for further clarity on the administration’s plans. Until then, volatility remains the name of the game.