XRP, DOGE, ADA Plunge 9% as Trump Dashes Hopes of Growing Cryptocurrency Reserve
Traders are disappointed that the plans to create a cryptocurrency reserve are unlikely to lead to increased buying pressure on the market, at least in the near term, as there are very few catalysts that can support the market.
Posted by Shaurya Malwa | Edited by: Parikshit Mishra Updated: March 7, 2025 9:18 UTC Published: March 7, 2025 7:21 UTC
What is important to know:
- Leading cryptocurrencies such as XRP, DOGE and ADA fell 9% after President Trump announced the creation of a Bitcoin Strategic Reserve that excludes these tokens.
- The decision triggered liquidations of over $400 million in bullish bets on crypto futures, mostly involving BTC-related products.
- Traders are currently focused on the upcoming White House crypto summit, although expectations are low due to the lack of serious promises from Trump.
Major tokens XRP, dogecoin (DOGE) and Cardano (ADA) have all fallen 9% in the past 24 hours after President Donald Trump dashed hopes of creating a diversified U.S. strategic cryptocurrency reserve.
On Thursday evening, Trump instructed his administration to create a Bitcoin Strategic Reserve to hold previously confiscated government bitcoin (BTC), as well as an additional “crypto reserve” of other assets. The non-bitcoin reserve would hold any cryptocurrencies that would otherwise be confiscated by the government.
This ended days of optimism fueled by Trump's previous comments about the possibility of listing XRP, ADA, Ether (ETH) and Solana's SOL tokens, dashing hopes of a tax-fueled buying pressure on all of these assets.
DOGE surged 12% earlier in the week after NYSE Arca filed a 19b-4 with the SEC to approve Bitwise's DOGE ETF, with some traders hoping for its inclusion in the strategic reserve.
Bitcoin, the centerpiece of Trump's plan, was also not left out, falling 4.5% from a 24-hour high above $93,000 to below $88,000. The broad CoinDesk 20 (CD20), a liquid index tracking the largest tokens by market cap, fell 5%, while smaller altcoins were down 10%.
The drop triggered the liquidation of more than $400 million in bullish bets on crypto futures, with the bulk of that coming from $230 million worth of BTC-tracking products.
Traders are now awaiting the White House Cryptocurrency Summit, which will take place in the US on the morning of March 7, but are not placing much hope on what will happen next.
“Traders have lowered their expectations as the SPR announcement fell short of expectations,” Nick Ruck, director of LVRG Research, CoinDesk, said in a Telegram post. “Trump made no significant promises at Friday’s summit that would change the trade war fallout, so risk aversion remains.
“Traders are hoping for surprise announcements between Trump and individual
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