Cryptocurrencies XRP, DOGE, and ADA dropped 9% after Trump’s Bitcoin Strategic Reserve announcement, which excluded these assets. Over $400 million in bullish futures were liquidated, leading to reduced market optimism ahead of the upcoming White House Crypto Summit. Traders are now cautious about future prospects without substantial commitments from Trump.
In a twist of fate, major cryptocurrencies like XRP, DOGE, and ADA experienced a sudden 9% drop, as President Trump unveiled plans for a Bitcoin Strategic Reserve, sidelining these altcoins. Investors had anticipated a diversified crypto reserve that might boost overall market vigor, but were met with disappointment as Trump’s focus remained solely on Bitcoin.
Late Thursday, Trump’s decision to establish a reserve earmarked for Bitcoin, coupled with seizing other cryptos, left traders feeling uneasy. They had hoped for bullish momentum, fueled by reports of further inclusion of altcoins, to tarnish under the weight of unexpected priorities. With this shift, optimism quickly evaporated, and many anticipated a diminishing buying power for non-Bitcoin assets.
Earlier in the week, DOGE saw excitement with a 12% rise following a promising ETF filing by Bitwise. Yet, the lack of promise from Trump regarding expansion into altcoins caused a sharp reversal. Bitcoin also felt the repercussions, dropping 4.5% from a high of over $93,000, along with a general decline across other major tokens, causing a panic in the market.
The crypto landscape soured, resulting in more than $400 million liquidated in bullish crypto futures, predominantly tied to Bitcoin products. As traders look toward the upcoming White House Crypto Summit, expectations remain tamed amidst concerns over the lack of substantial assurances from Trump.
Nick Ruck from LVRG Research remarked, “Traders have lowered expectations since the strategic reserve announcement failed to live up to expectations.” Speculation lingers, though, for potential surprises as key blockchain leaders meet at the summit, leaving a flicker of hope among traders eager for reprieve from the trade war’s effects.
The recent announcement by President Trump regarding the Bitcoin Strategic Reserve has sent ripples through the crypto community, leading to significant declines in major cryptocurrencies. As hopes for a diversified reserve faded, traders must navigate the uncertainty facing altcoins. All eyes are on the upcoming Crypto Summit, where the crypto community hopes raised expectations might still lead to positive outcomes.
Original Source: www.coindesk.com
