The cryptocurrency market experienced significant turbulence after a White House official clarified former U.S. President Donald Trump’s remarks regarding a proposed national crypto reserve. While Trump’s comments initially fueled speculation about certain digital assets, the clarification led to sharp declines in the prices of XRP, Solana (SOL), and Cardano (ADA).
Market Volatility Following Trump’s Crypto Remarks
Trump recently suggested forming a U.S. cryptocurrency reserve, a move that sparked widespread interest and speculation in the crypto space. During his statement, he specifically mentioned Bitcoin, Ethereum, XRP, ADA, and SOL, leading many to believe these assets could be included in a potential government-backed reserve.
However, a White House spokesperson later clarified that these cryptocurrencies were only examples, not a finalized selection. Despite this reassurance, the market reacted strongly, with investors seemingly interpreting the clarification as a setback for ADA, SOL, and XRP.
Price Drops and Increased Trading Volumes
Following the White House’s clarification:
XRP dropped 6.5%, falling to $2.40, while its trading volume surged by 33%.Solana (SOL) saw a 1.65% decline, with its price settling at $141.76, and trading volume rising by 20.17%.Cardano (ADA) suffered the biggest hit, tumbling 7.7% to $0.8313, with a 16.5% increase in trading volume.
This price action highlights ongoing volatility in the crypto market, which has already been facing challenges due to shifting regulations and investor uncertainty.
Trump’s Executive Order: A Bitcoin-Only Reserve
On March 6, Trump signed an executive order establishing a Bitcoin-only Strategic Reserve, funded through government-seized BTC. The decision confirms that, at least for now, the U.S. government is focused solely on Bitcoin rather than a broader crypto fund that includes altcoins like XRP, SOL, or ADA.
This development comes after Trump’s earlier social media post on March 2, where he suggested that a national crypto reserve could strengthen the digital asset industry, which he claimed had suffered from “corrupt attacks” by the Biden administration. The initial excitement surrounding his remarks quickly faded once it became clear that only Bitcoin would be included in the official reserve.
Regulatory Landscape and Industry Reactions
In parallel with these events, Washington, D.C. hosted the first-ever White House Crypto Summit, featuring major industry players such as Ripple, Gemini, and Crypto.com. The summit aimed to address the evolving regulatory landscape and discuss how government policies might shape the future of the cryptocurrency market.
As regulations continue to shift and political decisions influence investor sentiment, the crypto market remains highly sensitive to new developments. Whether Trump’s Bitcoin reserve plan will bring long-term stability or further volatility remains to be seen, but for now, traders are watching closely for the next big move in the crypto space.
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