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Financial markets often develop on the rhythm of political decisions and the universe of Kryptos is no exception. This Sunday Donald Trump revived investors’ attention by announcing that his project of crypto reserve would include several major assets, including XRP, Solana and Cardano. Initially, this list seemed that Bitcoin in this list, which was doubted about the position of the former president towards him. Quick settings then repaired the shot because they claim that Bitcoin and Ethereum would obviously be part of. This turnaround caused the peak of optimism and price, but the enthusiasm was short. But in less than 24 hours the market has changed. Regarding growing concerns about customs tariffs that Trump plans to save, which revives the fear of economic instability.
Trump’s effect: from hope to disillusionment
The intervention of Donald Trump on Kryptos first caused renewed optimism among investors. On Sunday, March 2, 2025, the US President said that the United States would represent a crypt reserve and specifically quotes XRP, Solana and Cardano. This announcement quickly increased the lesson and Bitcoin reached $ 94,000 in the euphoria of the moment. However, the initial absence of BTC in this list was again difficult. To distract any ambiguity, Trump published the second report, where he specified: “And of course BTC and ETH, as well as other value cryptos”.
This change of tone caused unusual volatility. The speculators took advantage of this climb to achieve rapid profits, causing brutal correction as soon as the announcement was blurred. In this Ethereum process, it dropped to $ 2,192, XRP dropped to $ 2.47, while crypto Sola closed to $ 148. Dogecoin, which has not been mentioned in the reserve project, also gathered on the contrary and shows a loss of 9 % in 24 hours. This sudden decline has been impaired by the influx of disposal on the derivative market. According to Corcilass, more than $ 661 million were disposed of in positions, of which 517 million were in long positions.
The impact of economic fears and tensions of trade
If Trump’s announcement was a catalyst of volatility, it quickly got with much more tangible economic concerns. The Krypto market was governed by the trend of traditional indexes on the stock market, especially The Dow Jones, S&P 500 and Nasdaq, all decreasing face to face the prospects of inflation and trade tension. In addition, one of the trigger elements of this correction is a notification of a new price increase compared to Canada and Mexico, scheduled for Tuesday. In addition, there are commercial restrictions to China, which further supports uncertainty.
In the face of this tense climate, institutional investors have reduced exposure to risky assets, leading to a wave of sale of bitcoins and altcoins. In parallel, NVIDIA, one of the leaders of the artificial intelligence market, noted that its actions fell 6 % into one day, emphasizing the general withdrawal of technological and speculative values. These signals reflect increased distrust to the market in the face of a possible return to protectionist policies that could slow growth and consider the liquidity of financial assets, including crypts.
At $ 83,933, Bitcoin has a 6 % drop for 24 hours, as well as the entire crypto market that is decreasing in red. Ethereum, Solana and Cardano are subject to a significant decline, while mass disposal further weaken the situation. This lower movement underlines the sensitivity of cryptos to political and macroeconomic decisions that informs their position of highly speculative assets.
The question remains: Will the markets find their dynamics or drop into a new phase of instability? Everything will depend on the development of trade tension and the actual impact of the measures announced by Trump. If the pricing policy is hardened, the markets can expand their repair. On the other hand, the calming of the tension could allow crypts to find their ascending trajectory. Until then, investors will have to deal with extreme volatility, such as the sector, where the smallest political signal can reverse this trend in a few hours.
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A graduate of the Toulouse and the Blockchain Consultant Certification certification holder and I joined the adventure of Cointribuna in 2019. I convinced of the potential of blockchain to transform many economy sectors, committing to raising awareness and informing the general public about how the ecosysty developed. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.