Bitcoin and other major cryptocurrencies surged Sunday after President Donald Trump announced plans for a U.S. crypto reserve that would include XRP, Solana, and Cardano. His initial post on Truth Social did not mention Bitcoin, leading to speculation, but he later clarified, stating, “And, obviously, BTC and ETH, as other valuable cryptocurrencies.” Bitcoin briefly neared $95,000, while Ethereum surpassed $2,500.
By Monday, the market rally had faded. Bitcoin dropped nearly $4,000, falling below $90,000 before recovering slightly to $90,529. At one point, it hit $86,366, down 5.69%. Ethereum slipped to $2,192, Solana to $148, and XRP to $2.47. Cardano, down to $0.90, remained one of the few cryptocurrencies in the top 10 showing gains over the past week, rising 24% in seven days.
The sell-off coincided with broader declines in traditional markets. The S&P 500 and Nasdaq fell amid concerns over Trump’s trade tariffs, which are set to take effect Tuesday on Canada and Mexico, with additional measures targeting China. Nvidia’s stock dropped more than 6%. Gold, in contrast, gained 1.66% to $2,895. Inflation worries and trade policy uncertainties contributed to the downturn, overshadowing Sunday’s crypto surge.
Mark Connors, chief investment strategist at Risk Dimensions, suggested that Trump’s comments may have been an attempt to set a positive tone ahead of a White House crypto summit scheduled for Friday. “Last month’s poor market sentiment remains unchanged,” he said, pointing to ongoing macroeconomic pressures.
The sharp price swings triggered $661 million in futures liquidations over 24 hours, wiping out $517 million in long positions. Bitcoin saw the largest liquidations, at $220 million, followed by Ethereum at $131 million. Solana, XRP, and Cardano were also heavily impacted.
Dogecoin, which was not included in Trump’s crypto reserve plans, also dropped, losing 9% to trade at $0.206. The overall crypto market is down 8% in the past day as excitement over Trump’s reserve announcement gave way to concerns over broader economic challenges.
