Trump's Tariffs Trigger Crypto Crash, ADA, XRP, SOL Plummet

Cryptocurrencies ADA, XRP, and Solana experienced a brutal crash, erasing recent gains following a brief rally sparked by former U.S. President Donald Trump's announcement of a U.S. crypto strategic reserve. The market's enthusiasm was short-lived, as traders locked in profits and adopted a more cautious stance, according to CoinDesk.

On Sunday, Trump's announcement sent these tokens soaring. ADA jumped over 60%, XRP climbed 33%, and SOL surged 22% as investors cheered the potential government-backed crypto reserve. However, the rally was short-lived, and the market quickly turned risk-off as global economic concerns took center stage.

The sudden crash wasn't just about profit-taking. Trump's latest tariff decisions added fuel to the fire. The president doubled tariffs on Chinese imports to 20% while confirming 25% tariffs on goods from Mexico and Canada. This triggered a wave of selling across risk assets, including cryptocurrencies, according to Bloomberg.

Kevin Guo, director of HashKey Research, noted in a Telegram message, "Trump's latest tariff announcements on Canada, Mexico, and China caused a massive selloff of crypto assets, completely reversing the previous day's crypto strategic reserve gains."

With Bitcoin down 9% to $84,000 and Ethereum losing 12% to trade just above $2,000, investors are now looking ahead to the White House Crypto Summit on Friday. The event could provide important insights into regulatory direction and the future of the crypto reserve.