U.S. President Donald Trump’s recent announcement of the creation of a Strategic Crypto Reserve has caused significant volatility in the cryptocurrency market. The news came after a turbulent “pump and dump” scenario on Monday, which made traders increasingly risk-averse. Bitcoin, which had been one of the most closely watched assets in the digital space, ended February with its most negative returns since 2014. It posted a sharp decline of 17.39%, marking a notable downturn for the leading cryptocurrency.
As for the broader crypto market, Bitcoin (BTC) saw a modest recovery of 1.74% despite the overall bearish sentiment. Similarly, Ethereum (ETH) rose by 2.75%, while altcoins like Solana (SOL) and XRP from the “Made in USA” category of altcoins performed better, with Solana up by 2.85%. However, Cardano (ADA) saw a decline of 3.66%, reflecting the widespread negative market sentiment.
The announcement of the Strategic Crypto Reserve, which includes a variety of top-tier cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, and Cardano, initially received an optimistic response from market participants. Traders were hopeful that such a reserve could introduce more stability and legitimacy to the crypto space. However, that optimism was short-lived. The subsequent market reaction turned fearful, resulting in a massive liquidation of positions, amounting to over $1.07 billion in liquidations on Monday alone. This sharp sell-off and the broader uncertainty left traders reeling from the aftermath.
In response to the market upheaval, all eyes are now on the upcoming White House Crypto Summit, scheduled for Friday, March 7. Market participants are hoping that the summit will provide some clarity and direction for the future of cryptocurrencies in the U.S. With regulatory uncertainty and volatile price swings, the summit could play a key role in shaping the sentiment surrounding digital assets in the coming months.
As the market waits for further developments, traders are bracing for more volatility, while some remain hopeful that the upcoming summit could provide much-needed stability and guidance for the rapidly evolving cryptocurrency landscape.
