Trump Boosts Crypto Market: ADA Surges 50%, XRP Flips ETH

Coin WorldMonday, Mar 3, 2025 2:42 pm ET

1min read

Cryptocurrency markets witnessed a surge in activity this week, with notable movements in the prices of several major digital assets. The news that former U.S. President Donald Trump had named Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), and XRP as potential candidates for a cryptocurrency reserve sparked a rally in the market, with ADA leading the charge with a 50% gain.

XRP briefly flipped ETH in terms of fully diluted valuation (FDV) during the rally, marking a significant moment for the Ripple-affiliated cryptocurrency. Meanwhile, Bitcoin continued its upward trajectory, rising back to 62% as ETH underperformed. The market's bullish momentum led to a significant loss for bears, with over $550 million in liquidations occurring on Sunday.

In other news, China's central bank governor, yi Gang, hinted that the country was planning to establish a strategic reserve of cryptocurrencies. This announcement comes as the global debate over the role of cryptocurrencies in central bank reserves continues to heat up. coinbase CEO Brian Armstrong weighed in on the discussion, arguing that BTC was the best option for a crypto reserve, while BitMEX co-founder Arthur Hayes dismissed the idea of a crypto reserve as mere "words."

Trump is expected to make an "investment announcement" today, which could potentially provide further clarity on his stance regarding cryptocurrencies. Meanwhile, the Swiss national bank (SNB) president, Thomas Jordan, expressed his skepticism about BTC's suitability as a reserve asset. In other news, sol surged by 20% following a major FTX unlock, while the largest ever CME gap was printed in BTC futures. A trader reportedly made $12 million on a $200 million perpetual bet during the market's volatility.

The BTC ETF's 8-day outflow streak finally came to an end, while blackrock added a BTC ETF to its model portfolios. The SEC once again delayed ETH ETF options on CBOE, leaving investors waiting for further developments in the regulatory landscape.

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