April 3, 2025
Crypto Prices Sink on Trump Reserve Skepticism, Tariff Concerns
 #CriptoNews

Crypto Prices Sink on Trump Reserve Skepticism, Tariff Concerns #CriptoNews

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(Bloomberg) — Euphoria in digital-asset markets stemming from Donald Trump’s plans for a strategic crypto reserve turned to skepticism on Monday, triggering early losses in cryptocurrencies that worsened throughout the day as investors braced for the US to impose 25% tariffs on Mexico and Canada.

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Trump said Sunday on Truth Social that the XRP, SOL and ADA tokens will be included in the reserve, along with Bitcoin and Ether. The news ignited an immediate crypto rally, offering relief to an asset class fresh off its worst month since 2022. Yet the inclusion of the three lesser-known digital tokens was later met with questions from investors about the project’s merits.

All of the cryptocurrencies that Trump said would be included in the reserve posted sharp declines by late afternoon in New York amid a broad retreat in risk assets that dragged the tech-stock-heavy Nasdaq 100 Index down more than 2%. Most of Sunday’s gains in the tokens were wiped out.

The Bloomberg Galaxy Crypto Index slumped almost 28% in February. The rout put pressure on Trump, who returned to the White House after the industry showered him with campaign donations and praise. Even the Securities and Exchange Commission’s reversal of a years-long crackdown had failed to stem the selloff, which many attributed in part to nervousness about Trump’s trade tariffs and dramatic moves to gut government programs.

“For a president who thrives on being the market’s hero, last week’s risk asset performance was anything but inspiring,” QCP Capital said in a note on Monday. “The political calculus was clear — Trump needed a win before his approval ratings start slipping, a metric he likely takes very personally.”

Bitcoin was almost 9% lower as of 3:20 p.m. in New York, trading near $86,000, while Ether lost about 16%. XRP sank 18% after rallying 32% on Sunday, while SOL and ADA slipped about 19% each. Crypto prices fell to their lows of the day after Trump said in the White House that there was “no room left for Mexico or for Canada” to negotiate with the US to win a reprieve from 25% tariffs scheduled to take effect on Tuesday.

In its first statement about creating a crypto reserve in January, the White House said such a stockpile would be “potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.” Bitcoin tends to be the main crypto token seized by law enforcement agencies, including in the bust of the notorious Silk Road website.

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