XRP News Today: $3 Breakout Fades Amid Reserve Asset Doubts; BTC Drops Below $90K

XRP Hits the Reverse Amid Strategic Reserve Asset Uncertainty

On Monday, March 3, XRP suffered heavy losses, retracing its brief President Trump-fueled return to $3. President Trump declared five leading cryptos to form a national crypto Strategic Reserve Asset, including XRP, SOL, ETH, BTC, and ADA.

However, details were sketchy. AI and Crypto Czar David Sacks stated that more information would be available at Friday’s Crypto Summit. A key question was whether President Trump’s shift from a Strategic Bitcoin Reserve would gain sufficient political backing on Capitol Hill.

Gemini co-founder Tyler Winklevoss reacted to Trump’s announcement:

“Only one digital asset in the world right now meets the bar and that digital asset is Bitcoin.”

Bitwise CEO Hunter Horsley echoed similar sentiments, remarking:

“Saw the Trump statement today, same as everyone else – I imagined a Strategic Reserve would just be Bitcoin. That makes the most sense to me. Many crypto assets have merits, but what we’re talking about here isn’t a US investment portfolio — we’re talking about a reserve, and Bitcoin is the undisputed store of value for the digital age.”

The lack of support for a multi-crypto Strategic Reserve Asset fueled uncertainty about whether US lawmakers would back the inclusion of ADA, ETH, SOL, and XRP.

Notably, Senator Cynthia Lummis, Chair of the Senate Banking Subcommittee on Digital Assets, was silent. In late December, Senator Lummis introduced the Bitcoin Act, proposing the US government acquire one million BTC over five years, with a 20-year mandatory holding period.

The US administration said it will provide more details at Friday’s Crypto Summit. Whether it pursues legislation or executive action will be critical in influencing market sentiment.

XRP Price Trends: SEC Appeal and Strategic Reserve Developments

On Monday, March 3, XRP tumbled 18.87%, trimming Sunday’s 34.18% surge, closing at $2.3869. The broader market dropped by 10.11% to a total crypto market cap of $2.78 trillion.

Uncertainty about XRP’s inclusion as a US crypto Strategic Reserve Asset and the SEC’s appeal strategy in the Ripple case fueled the reversal.

Meanwhile, XRP’s price trajectory now hinges on three key factors:

• US Strategic Reserve Asset: The administration’s funding allocation and lawmakers’ reactions will influence XRP demand.
• SEC Appeal Strategy: A dropped appeal could push XRP beyond its $3.55 all-time high, while ongoing legal uncertainty may send prices below $1.50.
• XRP-Spot ETF Developments: Approval of an XRP-spot ETF could trigger institutional inflows, potentially driving XRP toward $5.

Read expert analysis on what could drive XRP to new highs here.

Bitcoin Slides as Tariffs and Crypto Reserve Uncertainty Weigh on Markets

It was a gloomy start to the week for the US markets. US equity markets also reacted to the tariff news. The Nasdaq Composite tumbled 2.64%, while the Dow and S&P 500 slid by 1.48% and 1.76%, respectively.

President Trump poured cold water on delaying tariffs on Canada, China, and Mexico, triggering a sharp sell-off. The Kobeissi Letter detailed the market reaction, highlighting a $1.5 trillion market cap wipeout between 10:00 AM and 3:30 PM ET despite a positive opening.

BTC followed a similar trend, tumbling to a low of $84,817 before briefly revisiting the $87k level.

During a press conference and Q&A Trump signed an Executive Order raising tariffs on China to 20%, while also stating:

“No room left for Mexico or for Canada. No. The tariffs you know, they’re all set. They go into effect tomorrow.

US Tariffs and Bitcoin’s Outlook

Rising tariffs could drive up import prices, delaying Fed rate cuts. A more hawkish Fed rate path could raise borrowing costs, affecting demand for risk assets. Notably, Trump’s tariff rhetoric has contributed to BTC’s drop from $105,993 on January 31.

Meanwhile, uncertainty about US lawmakers supporting a national Strategic BTC Reserve remains a headwind for bitcoin.

Bitcoin Price Scenarios: Key Levels to Watch

On March 3, BTC slid by 8.61%, partially reversing Sunday’s 9.44% rally, closing at $86,201. It could be another choppy day on Tuesday, March 4, as investors monitor potential retaliations to the US tariffs.

Potential price scenarios:

• Bearish Scenario: Escalating trade disputes, BTC-spot ETF outflows, and resistance to a crypto reserve could push BTC below $80,000.
• Bullish Scenario: Easing trade tensions, ETF inflows, and bipartisan support for a US Crypto Strategic Reserve could send BTC beyond $109,312.

Market Outlook: Catalysts Driving Crypto Trends

Several key factors will influence the next major moves in the crypto market:

1. SEC Appeal Decision: A withdrawal could trigger a broad market rally.
2. US Tariff Policy & Inflation: Rising tariffs may delay Fed rate cuts.
3. US Economic Data: Services sector and labor market reports will influence Fed policy.
4. Crypto Strategic Reserve Asset: A multi-crypto reserve could accelerate institutional adoption.
5. BTC-Spot ETF Flows: Institutional demand will dictate BTC’s next price move.

A withdrawal of the SEC’s appeal in the Ripple case could trigger a broad market rally. Additionally, a clear regulatory framework for a US crypto reserve could accelerate institutional adoption.

Stay updated with our latest insights here.