Ethereum and Solana Plummet as Trump Crypto Reserve Hype Vanishes: Here is What You Need to Know – BlockNews.com
😲 Bitcoin surged near $95,000 after Trump hinted at a U.S. crypto reserve but later dropped to around $90,529. Trump clarified that Bitcoin and Ethereum would be included in the reserve after initial confusion. Market uncertainty persists as Bitcoin’s rally faces resistance amid trade concerns and inflation fears. Bitcoin, Ethereum, and other major cryptocurrencies saw a
- Bitcoin surged near $95,000 after Trump hinted at a U.S. crypto reserve but later dropped to around $90,529.
- Trump clarified that Bitcoin and Ethereum would be included in the reserve after initial confusion.
- Market uncertainty persists as Bitcoin’s rally faces resistance amid trade concerns and inflation fears.
Bitcoin, Ethereum, and other major cryptocurrencies saw a big surge on Sunday after President Donald Trump hinted at which assets could be included in a proposed U.S. crypto reserve. But by Monday, the rally had started to fade—Bitcoin giving up a chunk of its gains and dragging other assets down with it.
Following a sharp $4,000 drop that briefly pulled Bitcoin below $90,000, the leading cryptocurrency is now hovering around $90,529 at the time of writing. It’s still up nearly 4% in the past 24 hours but has slid from its Sunday high of almost $95,000.
That said, Bitcoin has made a strong comeback from its dip below $79,000 on Friday.
Trump Clarifies Crypto Reserve Plans
President Trump made waves on Sunday when he announced that the U.S. government would create a “crypto reserve” including XRP, Solana, and Cardano. However, his initial post left Bitcoin out, causing widespread confusion. Responding to the uproar, Trump followed up with another post on Truth Social, clarifying: “And, obviously, BTC and ETH, as other valuable cryptocurrencies.”
Market Volatility and External Factors
Ethereum briefly climbed above $2,500 on Sunday before settling just below $2,300, while XRP, Solana, and Cardano—three assets earmarked for the proposed U.S. reserve—also retraced some of their weekend gains.
Meanwhile, traditional markets felt the pressure. The S&P 500 and Nasdaq both dipped slightly on Monday, weighed down by concerns over Trump’s trade tariffs and persistent inflation fears. Gold, on the other hand, saw a 1.66% rise, trading at $2,895.
Bitcoin’s Short-Term Rally Faces Resistance
Mark Connors, chief investment strategist and founder of Bitcoin advisory firm Risk Dimensions, told Decrypt that Trump’s Sunday posts were likely an attempt to “set a better tone” ahead of the White House crypto summit scheduled for Friday. However, he warned that a single pump isn’t enough to override broader market forces.
“Last month’s poor market sentiment remains unchanged,” Connors noted, suggesting that Bitcoin’s short-term boost may not be enough to shake off the lingering economic concerns.
With Bitcoin’s momentum stalling and external market pressures mounting, traders will be closely watching whether Trump’s crypto summit can reignite bullish sentiment or if the recent surge was just another fleeting rally.
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