In a twist that sent shockwaves through the Web3 world, cryptocurrency traders were blindsided this week by a rollercoaster of hype and heartbreak. On March 2, 2025, U.S. President Donald Trump dropped a tantalizing hint about his administration’s ambitious plan to establish a strategic crypto reserve—a bold move that would see Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) stockpiled as national assets. The announcement sparked a frenzy of optimism, igniting massive buying that propelled Bitcoin from $85,000 to a peak of $95,000 and sent Cardano soaring an astonishing 72%. XRP, SOL, and ETH followed suit, riding the wave of euphoria as traders bet big on a pro-crypto future.
But the high didn’t last. Just as quickly as the markets surged, they cratered. By March 4, the dream of a U.S.-backed crypto utopia gave way to a harsh reality check. XRP, SOL, and ADA—darlings of Trump’s proposed reserve—plunged in unison, each shedding around 20% of their value in a brutal sell-off. Bitcoin, the granddaddy of them all, wasn’t spared either, dipping below its 20-week exponential moving average of $90,623 and testing the nerves of hodlers everywhere. Ethereum, too, took a hit, dropping 12% to hover just above $2,000—its lowest point since 2023.
What triggered the dramatic reversal? Analysts point to a classic case of “buy the rumor, sell the news.” Trump’s Sunday bombshell, delivered via Truth Social, had fueled wild speculation, but the lack of concrete details left traders jittery. Nansen’s Aurelie Barthere didn’t mince words: establishing a crypto reserve isn’t a done deal—it’s a long game that requires Congressional approval, a process that could drag on and inject uncertainty into an already volatile market. Her colleague Nicolai Sondergaard doubled down, warning that the tokens tapped for the reserve are in for a bumpy ride as hype collides with political reality.
The fallout was merciless. Bitcoin longs bore the brunt of the carnage, with over $300 million in positions liquidated in a single day, according to CoinGlass. Altcoin enthusiasts weren’t much luckier—XRP and ADA, despite their “Made in America” appeal, saw their Trump-fueled gains evaporate as traders cashed out. Solana, a favorite among DeFi diehards, couldn’t escape the bloodshed either, its price tumbling as the market recalibrated.
Yet amid the chaos, there’s a glimmer of hope. Technical charts suggest buyers stepped in at lower levels, with Bitcoin showing a “long tail” on its weekly candlestick—a sign of resilience despite the dip. And with the White House Crypto Summit looming on March 7, hosted by Trump’s digital asset czar David Sacks, the Web3 community is holding its breath. Will the summit deliver the clarity investors crave, or will it unleash another wave of turbulence?
For now, the crypto faithful are left picking up the pieces of a wild week. Trump’s vision of America as the “crypto capital of the world” may still be on the horizon, but this market shakeout proves one thing: in Web3, even the boldest promises come with a hefty dose of volatility. Buckle up—this ride’s far from over.
