Crypto Crash: Ethereum, Solana, Dogecoin Plummet After Trump's Reserve Announcement

Coin WorldTuesday, Mar 4, 2025 7:56 am ET

1min read

Cryptocurrency markets have witnessed a significant downturn in the past 24 hours, with Dogecoin (DOGE), Ethereum (ETH), and Solana (SOL) all experiencing double-digit declines. This correction follows a brief surge in prices after U.S. President Donald Trump announced a federal crypto reserve last Friday.

Ethereum, despite being included in Trump's crypto reserve plans, has seen a substantial drop of 11.4% in the past 24 hours and 13.9% week over week. Its price has fallen to $2,035, its lowest level since November 2023, and its price ratio versus Bitcoin has reached a historic low. This decline comes despite the initial optimism surrounding Trump's announcement.

Solana has also experienced a significant downturn, falling 16.1% over the past 24 hours and 2.9% on the week. It is currently trading at its lowest price since early September 2024, following a series of price drops in recent weeks. The future of Solana-based meme coins has been a subject of skepticism, which may have contributed to this decline.

Dogecoin, which was not named in Trump's crypto reserve plans, has also recorded losses of 12.4% in the past 24 hours and 6.6% week over week. It is currently hovering at its lowest level since early November 2024. Despite not being included in the initial plans, Dogecoin still benefited from the market's post-announcement surge.

Dr. Sean Dawson, head of research at options platform Derive.xyz, attributes the rapid price declines to uncertainty around the details of Trump's reserve plans. He suggests that while announcements like Trump's can spark short-term excitement, the lack of clarity and follow-through can lead to rapid corrections. Dawson predicts that volatility will likely remain high as traders navigate the uncertain year ahead.

High-profile figures from the crypto industry, including Gemini co-founders Cameron and Tyler Winklevoss and coinbase CEO Brian Armstrong, have criticized the inclusion of non-Bitcoin digital assets in the strategic reserve. Investment firm Bernstein has also expressed skepticism about the move. Cameron Winklevoss recently tweeted that "Bitcoin is the only asset that meets the bar for a store of value reserve asset," adding, "

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