The crypto market experienced a sudden downturn on Friday as major tokens like Cardano’s ADA, XRP, and Solana’s SOL faced significant losses. This shift in momentum came after a White House official clarified President Trump’s recent intentions regarding a proposed executive order to establish a strategic cryptocurrency reserve.
White House Official’s Clarification
In a conversation with reporters before the White House Crypto Summit, a senior official stated, “The president mentioned five examples of cryptocurrencies in his post, but those examples reflect the largest by market cap.” The official cautioned that the public might be overinterpreting the implications of the president’s announcement. “What we’ve shared here aligns with the consistent views the president has expressed about the cryptocurrency space,” they added.
Discrepancies in Market Capitalization
However, data from CoinGecko raises questions about the accuracy of this statement. Excluding the two dominant stablecoins, Tether’s USDT and Circle’s USDC, the five largest cryptocurrencies based on market capitalization are Bitcoin, Ethereum, XRP, Binance’s BNB, and Solana’s SOL. Notably, Dogecoin ranks sixth, with Cardano (ADA) closely following behind.
Trump’s Initial Announcement
On March 2, Trump took to social media to declare that a “U.S. crypto reserve will elevate this critical industry after years of corrupt attacks from the Biden Administration.” The inclusion of altcoins like SOL, ADA, and XRP in the proposed reserve faced backlash from various industry members, who voiced concerns about potential corruption and self-dealing.
Creation of a Bitcoin Strategic Reserve
On March 6, Trump signed an executive order directing his administration to establish a Bitcoin Strategic Reserve, which would be funded by the government’s seized Bitcoin holdings. It was emphasized that this crypto stockpile would be distinct from a separate reserve containing other cryptocurrencies.
Market Reactions
Following the White House official’s comments, ADA plummeted over 5%, settling at $0.82. XRP fell by 3.5% to $2.41, while SOL saw a decline of 2%. All three cryptocurrencies are part of a broader market slump, as Bitcoin also retraced to $87,000, losing its earlier gains.
Crypto Leaders Gather in Washington, D.C.
As the crypto market reacts to these developments, senior executives from prominent companies across the industry convened in Washington, D.C., for the White House’s inaugural crypto summit on Friday afternoon. Notable attendees include representatives from Ripple, Gemini, Robinhood Crypto, Crypto.com, Chainlink, and Anchorage, all eager to engage in discussions about the future of cryptocurrency regulation and innovation.
