Trump’s Crypto Reserve Announcement Sparks 9% Decline in XRP, DOGE, and ADA

Cryptocurrency traders are expressing disappointment after President Donald Trump’s announcement regarding the U.S. government’s strategic crypto reserve failed to bring the anticipated market boost. The announcement left traders with little to hope for in the short term, with few catalysts to lift prices.

Major cryptocurrencies such as XRP, Dogecoin (DOGE), and Cardano (ADA) experienced significant drops, plummeting as much as 9% in the past 24 hours. This followed Trump’s decision to create a Bitcoin Strategic Reserve, which will hold Bitcoin (BTC) previously seized by the government, alongside a separate “crypto stockpile” for other assets seized by law enforcement.

The announcement reversed a period of optimism that had been building after comments from Trump suggested that XRP, ADA, Ether (ETH), and Solana (SOL) could be included in the reserve. Traders had hoped this would lead to buying pressure for these altcoins, but the reserve will only include crypto assets seized by the government, dousing those hopes.

Dogecoin (DOGE) had seen a brief spike earlier in the week, rising as much as 12% following the filing for Bitwise’s DOGE exchange-traded fund (ETF) with the SEC. Some traders had hoped that DOGE would be included in the reserve, but the latest announcement dashed those expectations.

Bitcoin, the central focus of the reserve, wasn’t immune to the market downturn. It fell by 4.5%, dropping from a 24-hour high above $93,000 to below $88,000. The broader CoinDesk 20 index, which tracks the largest cryptocurrencies by market cap, declined by 5%, while smaller altcoins saw losses of up to 10%.

The market’s slide triggered over $400 million in liquidations of bullish crypto futures positions, with $230 million of those liquidations coming from BTC-related products.

With traders now turning their attention to the White House Crypto Summit scheduled for March 7, the mood remains skeptical.

“Since the strategic reserve announcement didn’t meet market expectations, traders are now more cautious,” said Nick Ruck, director at LVRG Research. “Trump hasn’t promised anything substantial for the summit, so the market is still in a risk-off mode.”

Despite some hope for unexpected announcements from Trump or industry leaders in attendance at the summit, the market remains uncertain and cautious as the crypto space waits for more clarity.