Crypto Market Reverses as ADA, XRP, and SOL Drop 21% After Trump’s Reserve Boost Fades

Optimism surrounding President Donald Trump’s proposed U.S. crypto strategic reserve faded fast, with Cardano (ADA), XRP, and Solana (SOL) tumbling 21% on Tuesday—wiping out all gains from the weekend rally.

The downturn comes after Trump’s Sunday announcement that the U.S. government would include ADA, XRP, and SOL in its strategic crypto reserve, alongside bitcoin (BTC) and ether (ETH). The news initially sent markets soaring, with ADA surging 60%, XRP jumping 33%, and SOL climbing 22%.

However, the rally proved short-lived as traders locked in profits and macroeconomic fears resurfaced. “This was a classic ‘sell the news’ event,” said Kevin Guo, director at HashKey Research. “Adding to the pressure, Trump’s new tariffs on China, Canada, and Mexico triggered broader risk-off sentiment across global markets.”

On Monday, the U.S. President confirmed a tariff hike on Chinese imports to 20% and the implementation of 25% tariffs on goods from Mexico and Canada. China responded by imposing a 15% duty on key U.S. agricultural products, intensifying trade war concerns.

Bitcoin (BTC) fell 9% in the past 24 hours, trading at $84,000, while ether (ETH) dropped 12%, slipping to just over $2,000. Broader crypto markets followed suit, with major altcoins also seeing steep declines.

With the White House Crypto Summit scheduled for Friday, investors are bracing for potential policy shifts that could either reignite bullish momentum or add to the volatility.