- Trump’s announcement of a U.S. Strategic Crypto Reserve initially sent Bitcoin, Ethereum, Solana, XRP, and Cardano soaring, but a broad sell-off erased most gains.
- XRP and ADA held onto their gains due to strong community backing, regulatory clarity, and speculation about their inclusion in a crypto ETF.
- The long-term impact of a government-backed crypto reserve could push digital assets further into mainstream finance and shape future regulations.
U.S. President Donald Trump made headlines with the announcement of a U.S. Strategic Crypto Reserve, which would include Bitcoin ($BTC), Ethereum ($ETH), XRP ($XRP), Solana ($SOL), and Cardano ($ADA). Many saw this as a landmark political endorsement of digital assets, and the market reacted with a sharp rally.
However, just a day later, a broad sell-off wiped out all the gains—except for XRP and ADA, which have held firm while the rest of Trump’s chosen cryptos retraced completely. So, let us take a closer look at what went down.
Market Reaction & Sell-Off
Trump’s announcement led to an immediate surge in prices across the board:
- $BTC jumped from $84K to $94K
- $ETH rose from $2,190 to $2,550
- $SOL spiked from $140 to $178
- $XRP surged from $2.20 to $2.90
- $ADA rallied from $0.65 to $1.10
But within 24 hours, the excitement faded, and a massive sell-off took hold. $BTC, $ETH, and $SOL fully retraced their gains, falling back to their pre-announcement levels. XRP and ADA, on the other hand, although they experienced some pullback, have held onto a significant portion of their gains, with $XRP sitting at $2.38 and $ADA at $0.86.
What’s Keeping XRP & ADA Strong?
It is important to note that, unlike $BTC, $ETH, and $SOL, which saw heavy liquidation and speculative unwinding, $XRP and $ADA have shown notable resilience. Some key factors contributing to this include:
- Loyal Communities – Both have dedicated supporters, providing stability during market fluctuations.
- $XRP’s Regulatory Clarity – Recent SEC victory gives $XRP regulatory certainty, boosting investor confidence.
- Charles Hoskinson‘s Involvement – Speculation about his role in the U.S. Strategic Crypto Reserve adds credibility to $ADA.
- ETF Potential – $XRP and $ADA are both seen as potential candidates for a crypto ETF.
Final Thoughts
In conclusion, while the market’s volatile reaction and subsequent sell-off highlight the unpredictable nature of the crypto market, the long-term impact of a government-supported crypto reserve could solidify these assets as mainstream investments. It will be interesting to see how the reserve evolves, and whether additional cryptocurrencies are included, potentially shaping the future of institutional involvement and regulatory frameworks in the space.
