On March 4, 2025, the cryptocurrency market experienced a significant crash, with Bitcoin (BTC) and major altcoins like Ethereum (ETH), XRP, and Solana (SOL) taking steep losses. Bitcoin dropped over 10%, falling to around $83K, while Ethereum saw a 15% dip, and XRP plummeted by 20%. The market lost nearly $460 billion in just 24 hours, with over $1.09 billion in liquidations recorded. Despite the recent announcement by U.S. President Donald Trump regarding the creation of a national crypto reserve, the market faced continued pressure due to broader economic factors, including ongoing trade tensions and fears of regulatory crackdowns.
The announcement of the U.S. crypto reserve had initially sparked a brief rally in the market, especially for altcoins like XRP, ADA, and SOL, which saw sharp gains. However, profit-taking and market uncertainty soon led to a widespread sell-off. Analysts predict that Bitcoin could potentially drop further, with some forecasting a dip to around $70,000-$75,000 before finding support and possibly resuming its uptrend.
XRP and Whale Activity amid Market Shake-Up
In addition to the general market downturn, XRP experienced notable whale movements. According to Whale Alert, nearly $70 million worth of XRP was transferred to Coinbase from an anonymous wallet, highlighting significant reshuffling on major exchanges. This came shortly after Ripple released one billion XRP tokens, coinciding with the announcement of the U.S. crypto reserve. These movements, along with the broader market instability, have fueled concerns about liquidity and regulatory risks for XRP holders.
As the market remains volatile, traders and investors are closely monitoring developments related to President Trump’s crypto reserve plan, while looking out for any further news from the White House Crypto Summit scheduled for March 7th, which could offer clarity on the future of crypto regulation.
Also read: Trump’s Crypto Reserve Proposal Sparks Debate: Should It Be Bitcoin-Only?
