XRP, DOGE, ADA Dip 9% as Trump Dashes Market’s Optimism for Crypto Reserve

Traders have been left disappointed following President Donald Trump’s announcement regarding the U.S. government’s strategic crypto reserve, with expectations that it would provide buying pressure to the market proving unfulfilled.

In the past 24 hours, major cryptocurrencies such as XRP, Dogecoin (DOGE), and Cardano (ADA) dropped by as much as 9%. The decline came after Trump directed his administration to establish a Bitcoin Strategic Reserve, which will hold Bitcoin (BTC) that has been seized by the government, along with a separate “crypto stockpile” for any other digital assets the government may confiscate.

This announcement dashed hopes that the reserve would include a wider range of tokens such as XRP, ADA, Ether (ETH), and Solana (SOL). Traders had anticipated that these assets might be added to the reserve, injecting much-needed buying pressure into the market. Instead, the reserve will only include assets already in government custody, leaving no room for additional purchases of these popular altcoins.

Earlier this week, DOGE had surged as much as 12%, fueled by the filing of a Bitwise DOGE ETF with the SEC. There was speculation that DOGE might be included in the reserve, but that hope quickly faded after Trump’s announcement, sending the token into a decline.

Bitcoin, the focal point of the reserve plan, also experienced a significant pullback. The cryptocurrency fell by 4.5%, dropping from a 24-hour high above $93,000 to below $88,000. The CoinDesk 20 index, which tracks the 20 largest cryptocurrencies by market cap, dropped 5%, with many smaller altcoins suffering losses of up to 10%.

The sell-off resulted in over $400 million in liquidations of bullish positions in crypto futures, with $230 million of that coming from Bitcoin-related products.

Traders are now focusing on the White House Crypto Summit, scheduled for March 7, but many remain skeptical about what it may deliver.

“Traders are dialing down their expectations after the strategic reserve announcement failed to spark the anticipated market rally,” said Nick Ruck, director at LVRG Research. “Trump hasn’t promised anything game-changing for the summit, so traders are still in a cautious, risk-off mindset.”

Despite the cautious sentiment, there’s still some hope that the summit may feature surprise announcements, particularly with key blockchain industry leaders and government officials expected to attend. However, for now, the market remains on edge, waiting for more clarity.

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