Major Crypto Tokens Decline

Major tokens XRP, Dogecoin (DOGE), and Cardano (ADA) fell as much as 9% in the past 24 hours after President Donald Trump’s announcement, impacting market sentiment.

Late Thursday, Trump instructed his administration to create a Bitcoin Strategic Reserve to hold Bitcoin (BTC) seized by the government, along with an additional “crypto stockpile” of other assets. This non-Bitcoin stockpile comprises any crypto that the government seizes.

This announcement reversed the bullish momentum that had built over the previous days, driven by Trump’s earlier comments, which had rekindled hopes of buying pressure on assets like XRP, ADA, Ether (ETH), and Solana’s SOL using taxpayer money.

DOGE had seen a spike of up to 12% earlier in the week following a 19-B filing for an ETF holding the token from asset manager Bitwise, with traders speculating on its potential inclusion in the strategic reserve.

Bitcoin, central to Trump’s strategy, dipped 4.5%, falling from a 24-hour high above $93,000 to under $88,000. The CoinDesk 20 index, tracking the largest tokens by market capitalization, fell by 5%, while smaller altcoins saw declines of up to 10%.

This decline resulted in over $400 million in liquidations on bullish crypto futures bets, with $230 million attributed to BTC-tracked products.

Traders are now looking toward the White House Crypto Summit set for March 7, although expectations are low.

“Traders have lowered expectations since the reserve announcement didn’t meet hopes,” said Nick Ruck, director at LVRG Research. He noted that Trump did not promise significant outcomes for the summit, maintaining a risk-off sentiment.

“However, there is some hope for unexpected announcements between Trump and blockchain leaders since multiple industry leaders and key government officials will be present,” Ruck added.