- Trump’s Crypto Reserve plan has caused a market frenzy with the prices dropping steadily.
- This market volatility has resulted in over $1.08 Billion in liquidations in the past 24 hours.
- Peter Schiff has heavily criticized this drop as a planned pump and dump by the Trump family.
On March 2, 2025, U.S. President Donald Trump announced plans for a Strategic Crypto Reserve, including Bitcoin, Ethereum, XRP, Solana, and ADA as key crypto assets. This announcement triggered an immediate frenzy in the market, causing a massive price surge, before dipping in just 24 hours, leading to over $1.08 billion in liquidations.
Source: Coinglass
The crypto reserve plan builds on Trump’s campaign promise to make the U.S. the “Crypto Capital of the World.” Following this announcement, Bitcoin jumped over 10% to above $94,000, Ethereum rose 13% past $2500, XRP surged 33%, Solana 22%, and Cardano 60% on March 2nd. However, by March 3, 2025, the prices dropped sharply, where Bitcoin fell below $90,000, currently standing at $83,303, with Ethereum 16% to $2043, XRP dropping 19% to $2.23, Solana 21% to $137, and Cardano 27% to $0.77, reflecting the chaotic market sentiment.
Related: Trump’s Crypto Reserve Plan and Ripple-SEC Deal Fuels Debate
Trump’s announcement briefly ignited a bullish momentum, but resulted in skepticism by the analysts, and critics. Peter Schiff criticized the crypto reserve plan and pointed out Eric Trump’s post for the announcement, stating that his post indicates that it was a planned pump and dump. He also claimed that Trump helped pull off the biggest crypto rug pull of all time. Further, a Congressional investigation has been warranted to find out answers to the questions corresponding to the announcement and the significant price drop. His posts gained both positive and negative comments from the crypto community where a few people agreed with his allegation and a few found them baseless.
Before these events, Peter called the reserve a “bailout” to prop up faltering marketing. He argued that Bitcoin was “on the verge of another sharp selloff” before Trump’s intervention and warned that government purchases could lead to a resumed decline once buying stops. Conversely, Standard Chartered’s Geoff Kendrick saw a path for Bitcoin to hit $500,000, while 21Shares Fedrico Brokate praised its potential to boost institutional adoption.
Trump has embraced crypto since his 2024 campaign, and has also launched personal memecoins with his family, which might also add an extra layer of skepticism and raise questions about conflict of interest. However, Trump’s upcoming White House Crypto Summit on March 7, 2025, is expected to clarify the reserve’s structure and could potentially reveal the real motive behind the Strategic Crypto Reserve.
