Markets Erase U.S. Crypto Reserve Pump Within Hours

Crypto markets have been on an emotional rollercoaster over the last 48 hours. Within one day of announcing that the White House planned to create a strategic U.S. Crypto Reserve, markets have fully retraced yesterday’s bullish surge.

Disappointed traders suggest the fault lies with President Donald Trump’s latest trade tariffs, which are sowing uncertainty and fear throughout capital markets.

All eyes now turn to Friday’s White House Crypto Summit, which could be a make-or-break moment for the industry.

Over $800M Liquidated as Markets Retrace Trump Pump

In the space of two days, crypto markets have experienced a complete U-turn in price and sentiment. Yesterday’s bulls have become today’s bears as the majority of crypto assets fully retraced Sunday’s explosive price appreciation.

According to Coinglass data, over $1.08B has been liquidated from long positions in the last 24 hours, suggesting bullish traders were blindsided by abrupt market moves. Within Solana DeFi alone, Ranger Finance reports that over $183M worth of long positions were also liquidated.

Remarkably, this move comes just one day after the biggest liquidation of short positions in many months. On March 2nd, over $543M in short positions were liquidated after President Trump announced the proposed U.S. Crypto Reserve would hold $ETH, $SOL, $XRP, and $ADA in addition to $BTC, the world’s largest cryptocurrency.

Social consensus suggests that Trump’s newly imposed trade tariffs on Canada, Mexico, and China are to blame for languishing market confidence and volatile selloffs. Even TradFi markets have suffered significant losses, with the DOW Jones dropping by 700 points and blue-chip stocks like Nvidia falling by 8.69% on a daily timeframe.

Crypto Market Loses $400M as TradFi Trading Opens

The cryptocurrency market hasn’t fared much better. After adding over $300B to the industry’s total market capitalization following the announcement of the U.S. Crypto Reserve, Trump’s tariff announcements have left the markets in terrible condition.

Based on CoinMarketCap data, the cryptocurrency industry’s total market capitalization has dropped by $400M within the last 24 hours.

Altcoins, especially those expected to be included in the U.S. Crypto Reserve, have been hit particularly hard. After spiking as high as $178, $SOL has since lost 23.59% of its value, currently exchanging hands at $136.

What to Expect From the White House Crypto Summit

Amidst turbulent markets, all eyes now turn to the upcoming White House Crypto Summit on March 7. While the Trump Administration has been vague on details, White House Crypto Czar David Sacks indicated that the event will provide greater clarity on the proposed U.S. Crypto Reserve.

Refuting claims that taxpayer money would be used to acquire crypto assets for the reserve, Sacks argues that commentators should wait to see what the White House proposes before attacking the administration.

Meanwhile, rumors are circulating throughout the crypto space that the White House could announce changes to existing capital gains taxation laws on crypto assets. 

At press time, these rumors are unconfirmed, with several market participants theorizing that the rumors are a deliberate ploy to pump prices ahead of Friday’s summit.

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