- Major cryptocurrencies including Ethereum, Solana, and Dogecoin have experienced double-digit price declines following initial surges after Trump’s federal crypto reserve announcement.
- Ethereum dropped to $2,035, its lowest level since November 2023, despite being named in Trump’s proposed crypto reserve plan.
- Market volatility is attributed to uncertainty about reserve details, criticism from industry leaders, and broader macroeconomic factors including Trump’s tariff announcements.
Major cryptocurrencies have plummeted in the past 24 hours, erasing gains made after U.S. President Donald Trump‘s federal crypto reserve announcement last Friday. Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) all registered double-digit percentage losses amid growing uncertainty about implementation details and skepticism from industry leaders.
ETH has tumbled 11.4% over the last day and 13.9% week-over-week, according to CoinGecko, despite being specifically named for inclusion in Trump’s proposed U.S. crypto reserve in a post on Truth Social. The second-largest cryptocurrency by market capitalization has fallen to $2,035, marking its lowest valuation since November 2023. Its price ratio compared to Bitcoin also reached historic lows last month.
Solana experienced even steeper declines, dropping 16.1% in 24 hours while recording a 2.9% weekly loss. SOL is now trading at its lowest level since early September 2024, having already hit three-month lows in recent weeks. The decline comes amid persistent concerns about the sustainability of Solana-based meme coins.
Meanwhile, Dogecoin shed 12.4% of its value in the past day and 6.6% over the week, hovering at its lowest level since early November 2024. Though not specifically included in Trump’s proposed crypto reserve plans, DOGE initially surged alongside the broader market following the announcement.
Dr. Sean Dawson, head of research at options platform Derive.xyz, attributes the rapid price correction to uncertainty surrounding Trump’s reserve plans. “This market behavior highlights that while announcements like Trump’s strategic reserve can spark short-term excitement, the lack of clarity and follow-through can lead to rapid corrections,” Dawson explained, adding that “Volatility will likely remain high as traders navigate the uncertain year ahead.”
Industry leaders have expressed skepticism about including non-Bitcoin digital assets in the strategic reserve. Gemini co-founders Cameron and Tyler Winklevoss and Coinbase CEO Brian Armstrong have publicly voiced concerns. Cameron Winklevoss recently tweeted that “Bitcoin is the only asset that meets the bar for a store of value reserve asset,” though he tentatively added, “Maybe Ethereum.” Investment firm Bernstein has also expressed doubts about the move.
Valentin Fournier, analyst at crypto research firm BRN, points to broader macroeconomic factors affecting market sentiment: “Trump’s confirmation that 25% tariffs on Mexico and Canada will take effect on March 4th” is “injecting uncertainty into the market” and creating a “risk-off sentiment.”
The cryptocurrency market as a whole has contracted by 10.7%, according to CoinGecko. However, this downturn isn’t isolated to digital assets. Traditional stock markets are also suffering, particularly in the technology sector as Trump’s tariff plans loom. The Nasdaq has fallen 2.64% at the time of reporting, while the S&P 500 is down 1.76%, according to Yahoo Finance data.
Crypto research group QCP has identified other contributing factors to the cryptocurrency market correction, including the declining yields of 10-year U.S. Treasury bills, highlighting the complex interplay between traditional financial markets and cryptocurrency valuations during this period of uncertainty.
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