Impact of Trump’s Crypto Strategic Reserve Plan on Market
Crypto markets experienced a significant reaction following the announcement of US President Donald Trump’s plans for a Crypto Strategic Reserve on March 2. The proposal included Bitcoin, Ethereum, XRP, Solana, and Cardano, which led to a wave of sell-offs as traders looked to take advantage of price movements, as reported by CryptoQuant.
Bitcoin and Ethereum Exchange Flows Surge
The report highlighted a notable increase in Bitcoin inflows to exchanges, soaring from the typical range of 500 to 1,000 BTC per hour to a peak of 6,739 BTC the following day. Ethereum also witnessed a surge, with nearly 300,000 ETH flowing into exchanges within an hour.
XRP Exchange Inflows Reach Record Levels
XRP followed a similar trend, with total exchange inflows reaching 2 billion tokens in just 2 days. At its peak, 193 million XRP entered exchanges per hour, mainly driven by significant whale transactions exceeding 1 million XRP.
Selling Pressure Intensifies
The large inflows into exchanges indicate increased selling pressure, with many crypto traders offloading their holdings to secure gains following the market uptick.
Weak Spot Demand Despite Price Fluctuations
Analysts at CryptoQuant observed that despite the price fluctuations, true spot demand remains weak in the market. Bitcoin’s growth has slowed down since the post-election rally in late 2024 and has now entered contraction territory for the first time since September 2024.
“Unless Bitcoin demand starts to increase again, sustaining a rally in crypto prices will remain challenging.”
