Crypto Market Faces Major Decline as ADA, XRP, and SOL Fall 21%
Major tokens like ADA, XRP, and SOL experienced significant declines after an initial surge following President Trump's announcement of a US crypto strategic reserve.
Market Volatility Following Announcement
- On Monday, Bitcoin and many altcoins surged, with ADA increasing over 60%, XRP climbing 33%, and SOL rising 22%.
- By Tuesday, these cryptocurrencies dropped by 21% due to profit-taking by investors.
- The Australian government's rejection of digital assets as a strategic reserve contributed to the decline.
Panic from Tariff Increases
- Trump's new tariffs on imports from Canada, Mexico, and China triggered further selling pressure.
- China responded with a 15% tariff on US imports, escalating tensions.
- Kevin Guo from HashKey Research noted that cryptocurrencies are viewed as risk assets correlated with the US equity market.
- Market anticipation surrounds the upcoming White House Crypto Summit for potential policy shifts.
As of now, Bitcoin has decreased by 8.70%, trading at $83,953.88, while Ethereum is down 10.86%, trading at $2,096.28.