Traders are expressing disappointment after the U.S. government’s announcement of a strategic crypto reserve failed to deliver the buying pressure many had hoped for, leaving the market with few catalysts to lift prices in the near term.
Major tokens, including XRP, Dogecoin (DOGE), and Cardano (ADA), suffered sharp declines of up to 9% in the past 24 hours following President Donald Trump’s latest directive. Late Thursday, Trump ordered the creation of a Bitcoin Strategic Reserve to hold BTC previously seized by the government, as well as a separate “crypto stockpile” for other assets that the government might confiscate. However, the announcement dashed hopes for a more diversified reserve, with no new buying pressure expected for tokens like XRP, ADA, Ether (ETH), and Solana (SOL).
The move reversed the bullish momentum seen earlier in the week, when traders had been optimistic about the inclusion of these assets in the strategic reserve. DOGE, which had gained as much as 12% earlier in the week due to a filing for a Bitwise DOGE ETF with the SEC, also experienced a sharp decline as hopes of its inclusion faded.
Bitcoin, the centerpiece of the reserve, also saw a dip, falling 4.5% from a 24-hour high above $93,000 to below $88,000. The broader CoinDesk 20 (CD20) index, which tracks the largest tokens by market capitalization, dropped 5%, with smaller altcoins sinking as much as 10%.
The selloff triggered over $400 million in liquidations on bullish crypto futures positions, with $230 million of those liquidations tied to BTC-tracked products.
Traders are now turning their attention to the White House Crypto Summit scheduled for March 7, but many are not holding out hope for significant developments.
“Traders have lowered expectations after the strategic reserve announcement didn’t meet their hopes,” said Nick Ruck, director at LVRG Research. “Trump hasn’t promised anything substantial for Friday’s summit that could reverse the negative impact on the market. The sentiment remains risk-off.”
While some traders still hold out hope for surprise announcements from Trump or key blockchain industry leaders in attendance, overall market sentiment remains cautious.
