Major Tokens ADA, XRP, and SOL That Recently Saw Their Values Rise on Trump's Digital Assets Reserve Plan Announcement Have Crashed

This situation has now left investors scrambling for answers. Monday came with a fresh air of hope and optimism for the general crypto market

Major cryptocurrency tokens, including Cardano (ADA), XRP, and Solana (SOL), saw their values rise on Monday as President Donald Trump revealed plans for a US crypto strategic reserve.

However, the gains have been wiped out on Tuesday as the market continues to digest President Trump’s latest tariff moves.

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The crypto market saw some fresh rays of hope on Monday as President Donald Trump revealed plans for a US crypto strategic reserve.

As a result, Bitcoin, along with the majority of altcoins, surged in value.

The news also saw many market influencers and traders speculating that Trump’s plan for the reserve to include Bitcoin and Ethereum could be a major step toward legitimizing digital assets in the country. It will give more room for institutional adoption of digital assets.

To mention a few, ADA’s value immediately increased by over 60%, XRP climbed 33%, while SOL also jumped 22%.

Surprisingly, however, none of the cryptocurrencies could sustain the massive gains of the previous day.

On Tuesday, Cardano (ADA), XRP, and Solana (SOL) dropped by 21%, as the market quickly reversed the strong rally seen on Monday.

The steep price reductions seen on Tuesday are primarily a result of many investors starting to take profits.

Another reason that could have led to the price reduction is the Australian government’s rejection of digital assets as strategic reserve.

Tariffs Trigger Panic as Market Awaits Crypto Summit

Adding to the selling pressure, President Trump’s latest tariff moves on Canada, Mexico, and China have rattled investors.

China recently responded with a 15% tariff on the US imports on Tuesday after Trump doubled tariffs on Chinese goods to 20%, while adding that 25% tariffs on imports from Mexico and Canada would also take effect the same day.

Speaking about these events, Kevin Guo, director of HashKey Research, stated:

“Despite a slew of pro-crypto deregulation initiatives and supportive policies, investors view cryptocurrencies as risk assets strongly bound by the performance of the US equity market.”

Unfortunately, the global cryptocurrency market is feeling the heat of this unspoken traffic war between the countries.

Coincidentally, the upcoming White House Crypto Summit, scheduled for Friday, has kept many traders and market experts on their toes.

For many, their hopes hang around the possibility that the talks from that summit will bring about a notable policy shift or announcement that would lead to some sort of encouragement or reassurance.

At the time of writing this post, CoinMarketCap data showed that Bitcoin has dropped 8.70% in the past 24 hours, trading at $83,953.88. Ethereum has also declined 10.86% and now trading at $2,096.28.

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