Cardano’s Value Falls by 32% After Bitcoin-Only Reserve Decision: What’s Happening?

President Trump’s recent announcement regarding Cardano’s inclusion in a crypto strategic reserve led to a significant price surge of 58%. However, things took a turn shortly after when Trump signed an executive order that established a Bitcoin-only reserve, resulting in altcoins like ADA being relegated to a non-buying stockpile for the purpose of holding and selling. As a consequence, Cardano’s gains were wiped out, with its value plummeting from $1.14 to $0.73.

The repercussions of this decision were swift, as Cardano’s market cap dropped by a staggering $12 billion since March 3. This downturn caused ADA to slide from being the 5th largest cryptocurrency to the 8th, according to a report by Protos. Despite speculation that Cardano founder Charles Hoskinson would attend the White House crypto summit, he was notably absent.

Hoskinson addressed the situation on X in a post on March 8, mentioning that there would be future opportunities for regulatory engagement both domestically and globally. Subsequently, he shifted his focus to engaging in broader crypto discussions and actively working on various Cardano-related initiatives, while also expressing criticism towards Solana and meme coins.

In the face of these developments, institutional interest in Cardano remains palpable. Grayscale’s announcement on March 13 of further Cardano accumulation serves as a testament to this sentiment. Furthermore, on February 24, the SEC formally acknowledged Grayscale’s proposal for an ADA ETF, fueling speculation around its potential approval. Polymarket data reflects an increase in the likelihood of an ADA ETF approval in 2025, rising from 64% on March 10 to 70% currently.

The recent fluctuations in Cardano’s valuation and its exclusion from the strategic crypto reserve underscore the volatility and unpredictability inherent in the cryptocurrency market. As Cardano navigates these challenges, its ability to adapt and resonate with institutional investors will likely play a crucial role in shaping its future trajectory and market positioning in the fast-evolving landscape of cryptocurrencies.