Bitcoin, Ethereum, Solana, and Ripple Decline as Hype Fizzles Out
The cryptocurrency market is experiencing a sharp downturn, with Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA) continuing their downward trajectory for the second consecutive day. This decline follows the initial surge in optimism surrounding U.S. President Donald Trump’s announcement of the ‘Crypto Strategic Reserve’, which turned into a classic “buy the rumor, sell the news” event.
Trump’s Crypto Strategic Reserve Fails to Sustain Momentum
On Sunday, President Donald Trump unveiled plans for a U.S. Crypto Strategic Reserve, aimed at strengthening America’s position in the global digital asset space. Trump emphasized that the initiative would include major cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, and Cardano.
Trump’s statement on Truth Social read:
“A U.S. Crypto Reserve will elevate this critical industry after years of attacks by the Biden Administration. My Executive Order on Digital Assets has directed the Presidential Working Group to move forward on this Crypto Strategic Reserve, ensuring that XRP, SOL, and ADA play a key role. We are MAKING AMERICA GREAT AGAIN!”
The announcement triggered a massive rally in crypto prices, with major assets seeing double-digit gains:
✅ Bitcoin (BTC) surged 9.53%
✅ Ethereum (ETH) jumped 13.53%
✅ XRP (Ripple) skyrocketed 34.13%
✅ Solana (SOL) spiked 24.40%
✅ Cardano (ADA) saw an astonishing 72.15% increase
However, the bullish momentum was short-lived. By Monday, the crypto market reversed direction, with major cryptocurrencies plunging in early European trading on Tuesday.
Market Liquidations Exceed $1.96 Billion
The abrupt shift in sentiment caused a wave of liquidations, with $1.96 billion wiped out from the market between Sunday and Tuesday, according to Coinglass liquidation data.
📉 Massive sell-offs occurred as traders reacted to concerns over:
- Lack of clarity in Trump’s proposal
- Inclusion of non-Bitcoin assets like Cardano in the reserve
- Potential regulatory hurdles
In an exclusive interview with FXStreet, Dr. Sean Dawson, Head of Research at Derive.xyz, commented:
“The market saw major volatility after Trump’s announcement. However, the lack of details in the proposal quickly led to a reversal. While such news can spark short-term rallies, without clear execution plans, they tend to collapse just as quickly.”
What’s Next? White House Crypto Summit in Focus
Despite the current sell-off, market participants are now awaiting the White House Crypto Summit, where officials are expected to:
✅ Explain the full plan for the Crypto Reserve
✅ Provide clarity on funding mechanisms
✅ Outline regulatory integration into the U.S. financial system
Until then, analysts predict that the crypto market may remain volatile, with further price corrections likely in the short term.
Conclusion: A ‘Buy the Rumor, Sell the News’ Event?
For now, Trump’s Crypto Strategic Reserve seems to be just another short-lived media headline rather than a game-changing policy shift. The market’s initial excitement has faded, replaced by profit-taking and uncertainty.
Will the upcoming White House Crypto Summit revive bullish momentum, or will traders continue to sell off assets? Stay tuned for more updates on www.dailyforex.pk 🚀