XRP, DOGE, and ADA Plunge as Trump Snubs Altcoins for Bitcoin Reserve

Major cryptocurrencies, including XRP, Dogecoin (DOGE), and Cardano (ADA), tumbled up to 9% in the past 24 hours after U.S. President Donald Trump dashed hopes of a diversified crypto reserve. Bitcoin (BTC) also dipped 4.5%, falling from over $93,000 to below $88,000.

On Thursday, Trump ordered the creation of a Bitcoin Strategic Reserve, prioritizing BTC from government-seized assets while leaving other cryptocurrencies out of direct taxpayer-backed purchases. This move reversed recent bullish momentum that had lifted XRP, ADA, Ethereum (ETH), and Solana (SOL), disappointing investors who anticipated broader crypto adoption.

DOGE initially surged 12% earlier in the week after NYSE Arca filed for SEC approval of Bitwise’s DOGE ETF. Some traders speculated that DOGE might be included in the strategic reserve, but the latest announcement diminished those hopes.

The market downturn triggered over $400 million in liquidations, with BTC futures accounting for $230 million. The CoinDesk 20 (CD20) index, which tracks the top cryptocurrencies, dropped 5%, while smaller altcoins saw declines of up to 10%.

Now, traders turn their attention to the White House Crypto Summit on March 7, but expectations remain low. Nick Ruck, director at LVRG Research, noted that Trump’s announcement failed to deliver on expectations, reinforcing a risk-off sentiment. However, industry leaders and government officials will be present, leaving room for potential surprise developments.

The crypto market remains on edge, with traders watching closely for any unexpected policy shifts or strategic partnerships that could alter market sentiment.