XRP is trading at $2.17, experiencing a drop of 6.91% within the past 24 hours as per CoinMarketCap data. Investors reacted to the details surrounding the newly announced U.S. Strategic Bitcoin Reserve, further fueling the market downturn.
Broader economic concerns, trade tensions, and a significant selloff have also led to substantial liquidations across the crypto space.
The executive order, signed by President Donald Trump, introduced the U.S. Strategic Bitcoin Reserve and a Digital Asset Stockpile. Initially, market participants anticipated that the U.S. government would actively purchase various cryptocurrencies, including XRP.
However, the order clarified that the reserve would be funded solely by digital assets already obtained through forfeitures. Additionally, while the government could buy more Bitcoin under specific conditions, it would not make additional purchases for the Digital Asset Stockpile.
This confirmation led to a decline in investor sentiment, as many had hoped for a broader government acquisition of digital assets.
According to CoinCorner CEO Danny Scott, the executive order allowed officials to acquire more Bitcoin but restricted their selling ability. In contrast, other cryptocurrencies in the Stockpile, including XRP, could be sold but not acquired by the government.
This revelation disappointed investors who had expected broader government involvement in crypto acquisitions.
Also Read: XRP Price Prediction for the Year (2025-2028): Will XRP Hit $3 Soon?
Crypto Market Faces Heightened Selloff and Liquidations
The broader cryptocurrency market experienced a sharp decline, with Bitcoin dropping over 4% to $82,176. The market’s total valuation shrank to $2.77 trillion, recording a 7% downturn.
Other significant assets, including Ethereum, Solana, Cardano, and Dogecoin, suffered similar losses, with Ethereum nearing the $2,000 mark. Cardano and Dogecoin also faced significant declines, falling nearly 7% and 9%, respectively.
The selloff resulted in massive liquidations, with $616 million wiped from the market in the past 24 hours. Long positions were hit the hardest, accounting for $540 million in losses, while Bitcoin alone recorded $231 million in liquidations.
This increased volatility has led to concerns that the market could experience further losses in the coming days.
Trump’s Economic Policies Add to Market Fears
President Trump addressed economic concerns in a recent Fox News interview, acknowledging short-term market volatility due to his policies, including tariffs and budget adjustments.
He emphasized that these measures aim to drive long-term economic growth. Commerce Secretary Howard Lutnick dismissed recession fears, stating no immediate cause for concern.
However, market participants remain wary, comparing Trump’s approach to former Federal Reserve Chairman Paul Volcker’s policies, which initially triggered a recession before stabilizing the economy.
This uncertainty has impacted Bitcoin, with BitMEX co-founder Arthur Hayes warning of potential declines toward $78,000, citing significant options activity between $70,000 and $75,000.
Investors closely monitor key economic reports, including the U.S. Consumer Price Index on March 12 and the Producer Price Index on March 13. These indicators could shape market sentiment and cryptocurrency trends.
Meanwhile, regulatory and macroeconomic factors continue to drive volatility in the broader crypto market, keeping investors on edge.
Also Read: Here is Why You Should Hold At Least 1,000 XRP – Expert Reveals
