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Trump's Crypto Reserve Spark: Billions in XRP, Bitcoin Flood Exchanges

Coin WorldWednesday, Mar 5, 2025 2:17 pm ET
1min read

Cryptocurrency markets witnessed a significant surge in exchange inflows following U.S. President Donald Trump's announcement of a U.S. crypto strategic reserve on March 2. Billions of XRP tokens and thousands of bitcoins were sent to exchanges shortly after the announcement, contributing to rapid price reversals.

On-chain analysis firm CryptoQuant reported that hourly inflows of XRP reached up to 193 million, with most of the flows coming from whales executing transactions of 1 million or more XRP. Meanwhile, hourly bitcoin inflows increased from 500-1,000 to a high of 6,739 BTC, and ETH inflows into exchanges spiked to almost 300,000 in an hour.

Inflows to exchanges from funds and traders usually imply an intention to sell, as large token holdings are typically stored in cold (or offline) wallets. However, CryptoQuant analysts noted that the rise and sudden fall of cryptocurrencies on Monday and Tuesday indicated that real spot demand continued to contract.

Analysts also pointed out that Bitcoin apparent demand growth has continued to decline after a period of acceleration in November-December 2024, spurred by the U.S. election results. Unless Bitcoin demand starts to increase again, sustaining a rally in crypto prices will remain challenging.

Trump's announcement of a U.S. crypto strategic reserve on Sunday, March 2nd, resulted in an increase in crypto prices, with the market cap growing over $300 billion. Bitcoin managed to recover from the past week's losses, climbing above the $92,000 mark early Monday. However, traders rushed to sell, flooding exchanges with 6,739 Bitcoin, $275 million in short liquidations, and wiping out $800 million from the market.

Investors bet on an ETF approval for XRP, forecasting an inflow of up to $8 billion to XRP ETFs if approved. The crypto market crash saw $112 billion wiped out, with Bitcoin, Ethereum, and XRP exchange inflows surging. Despite the market surge, Bitcoin ETFs saw net outflows double as optimism faded.

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Lucas
03/05

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Affectionate_You_502
03/05
@Lucas Sure
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James___G
03/05
ETF bets are on, but optimism wavers fast
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k_ristovski
03/05
@James___G What's your take on XRP's future?
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PlentyBet1369
03/05
Market cap gains $300B and then $112B wiped out. Crypto rollercoaster never fails to amuse.
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Codyofthe212th
03/05
CryptoQuant knows inflows, but where's the demand?
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ttforum
03/05
XRP whales flexing big time with 193M inflow. Is it smart money moving before ETF news?
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WorgenFurry
03/05
$275M in BTC sold off quickly. Are traders just chasing quick gains or is there more to it?
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DisabledScientist
03/05
XRP whales feasting, BTC whales holding steady
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tinyraccoon
03/05
Market's a rollercoaster, but I'm holding long-term. Diversified with $AAPL, $TSLA, and a chunk of XRP. Crypto's future, imo.
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Sam__93__
03/05
Bitcoin's demand growth slowing down. Can it recover, or are we heading back down? 🤔
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CorneredSponge
03/05
@Sam__93__ Do you think BTC will bounce back?
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Gentleman1217
03/05
Trump's reserve sparks FOMO, then swift sell-offs
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serkankster
03/05
@Gentleman1217 FOMO's a real thing, ngl.
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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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