The cryptocurrency market experienced a significant rally over the weekend, sparked by President Donald Trump’s announcement regarding the inclusion of three additional digital assets—Solana (SOL), XRP, and Cardano (ADA)—in a future national “Crypto Strategic Reserve.”
This news provided a much-needed respite for the market, which had been grappling with a downturn due to a series of challenges, including a memecoindebacle, a major hack, and ongoing tariff uncertainties. Short-Lived Crypto Rally
Initially, president Donald Trump’s announcement led to impressive gains across the board. XRP surged by 32% in the hours following the news, while Solana saw a 27% increase, and Cardano jumped as well.
However, as the excitement settled, these gains began to fade. In the past 24 hours, XRP has lost 18% of its value, Solana is down 20%, Ethereum (ETH) 25%, and Cardano dropped 25%. Bitcoin, which had briefly rallied by 11%, also experienced a decline of 10% in the same period. Related Reading Dogecoin To Join Trump’s Crypto Reserve? Elon Musk Reacts 1 day ago
The backdrop of this rally was Trump’s announcementof a 25% tariff on goods imported from Canada and Mexico, a move that has raised concerns among both stock and crypto investors. The president indicated that the time for negotiation had passed, leading to immediate reactions in financial markets. Coinbase CEO Advocates For Bitcoin-Only Reserve
Despite the boost in interest from Trump’s declaration, details surrounding the establishment of the Crypto Strategic Reserve remain vague. While the president named the currencies to be included, he did not specify when the reserve would be operational or how the government intends to finance these assets.
This ambiguity leaves investors and industry leaders alike awaiting further clarification, particularly as Trump prepares to host the first cryptocurrency summit at the White House this Friday.
The event will reportedlyfeature prominent figures from the digital asset space, including founders, CEOs, and investors, and is expected to shed light on the administration’s plans. Related Reading Dogecoin Breaks Above Falling Wedge Pattern – Analyst Sets $0.43 Target 23 hours ago
Zach Pandl, head of research at Grayscale, noted the growing trend among investors to diversify their crypto holdings. He emphasized that while Bitcoin remains a focal point for many, the digital asset classis diverse, and investors are increasingly looking for a broader range of exposures similar to those in traditional asset classes.
However, not all industry leaders are on board with the idea of a multi-asset reserve. Brian Armstrong, CEO of Coinbase, suggested that including just Bitcoin might be the simplest and most effective approach.
Coinbase’s CEO acknowledged the interest in diversification but proposed a market cap-weighted index of crypto assets as a potential alternative to maintain neutrality. The daily chart shows XRP’s price volatility. Source: XRPUSDT on TradingView.com
So far, XRP has managed to consolidate at $2.30, down more than 32% from its record high of $3.40 reached during the 2018 bull cycle.
Featured image from DALL-E, chart from TradingView.com