XRP, DOGE, ADA Slump 9% as Trump Douses Bullish Crypto Reserve Hopes

Story Highlights

• XRP, DOGE, and ADA drop 9% as Trump prioritizes Bitcoin in U.S. crypto reserve.

• Altcoins decline as hopes of a diversified U.S. crypto reserve fade.

• Treasury to manage non-Bitcoin assets but won’t make additional acquisitions.

Major cryptocurrencies, including XRP, Dogecoin (DOGE), and Cardano (ADA), have seen a sharp decline of up to 9% in the past 24 hours. The drop followed Trump’s decision to focus the U.S. crypto reserve on Bitcoin (BTC). The investment community reacted negatively to the lack of diversified strategies in this move.

Altcoins Slide as U.S. Prioritizes Bitcoin in Strategic Reserve

Currently, the market value of XRP stands at $2.44 while DOGE reaches $0.20361 and ADA maintains $0.8400. The market demonstrated a bullish pattern in its price movement throughout the week because investors anticipated XRP, along with ADA, Ether (ETH), and Solana (SOL) would end up in the reserve. The new directive from Trump doused the expectations which had been established previously.

Trump executed an executive order requiring his administration to establish a Bitcoin Strategic Reserve to store BTC obtained from government seizures. A U.S. Digital Asset Stockpile functions as the management system for all cryptocurrencies owed to forfeiture. Active purchases from the government are excluded from the strategic plan for these assets so any potential buying pressure remains limited.

Stock market sentiment declined after this choice led multiple alternative coins to experience value depreciation. The Bitwise DOGE exchange-traded fund gained 11% as NYSE Arca submitted its regulatory petition to authorize the fund earlier this week. Market analysts started guessing DOGE could get approval for the strategic reserve which briefly raised its value.

Bitcoin as the main focus of Trump’s strategy experienced market instability during this event. The market value declined by 6% during this period dropping from over $91,283 to stay below $85,000.

Treasury to Oversee Seized Crypto, No New Purchases Planned

The executive order also establishes the U.S. Digital Asset Stockpile to oversee non-Bitcoin digital assets which are obtained from legal proceedings. For these assets the Treasury Department has been assigned oversight responsibility to maintain proper management. Market enthusiasm has waned because the government has made no additional acquisitions beyond legal seizures.

The exclusive Bitcoin focus by Trump for the U.S. strategic reserve triggered major valuation drops for XRP, DOGE, and ADA. As a result, expectations of market-wide investment diversity disappeared, which led to diminishing investor confidence.