Trump calls for crypto reserves. Will the crypto market be more important than the stock market in his second term?
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The United States stock market and cryptocurrency market faced a significant correction in February, but this disappointment has just been relieved. Two days ago, the White House announced that it will hold the first Cryptocurrency Summit this Friday (3/7), which will be hosted by White House AI and Cryptocurrency Czar David Sacks and managed by Bo Hines, the executive director of the President's Digital Asset Working Group. Moreover, U.S. President Donald Trump announced on Sunday that he will include BTC, ETH, SOL, XRP, and ADA in the cryptocurrency asset reserve, boosting the upward trend of the cryptocurrency market, including Bitcoin.
(The crazy February is over, Bitcoin once broke $80,000, and MicroStrategy fell 24% in a month)
Table of Contents
- Trump values market performance, first term looks at the stock market, second term looks at cryptocurrencies?
- Where do the reserves come from? Is it asset seizure or money buying?
Trump values market performance, first term looks at the stock market, second term looks at cryptocurrencies?
Trump is extremely concerned about the bullish performance of the market. According to Unchained, citing statistics from JPMorgan Chase, he posted 156 positive comments about the stock market's performance on Twitter (now X) during his first term as president. However, since 2024, he has only posted one post related to the stock market. Since his inauguration on 1/20, the S&P 500 index has fallen 1.47%.
The cryptocurrency market also faced a significant decline last week. On Sunday, U.S. President Donald J. Trump issued a statement through his official social media account, announcing that he will promote relevant policies to establish a U.S. cryptocurrency strategic reserve. Trump said this policy will cover multiple cryptocurrencies, including XRP, Solana, and Cardano. An hour later, he also mentioned Bitcoin and Ethereum as his favorites, and with the call of Trump's advisor, the overall market also quickly warmed up.
(Trump: Pushing Crypto Asset Reserves by Executive Order, Related Assets Surge Over 75%, Pointing to BTC, ETH, SOL, XRP, ADA)
Where do the reserves come from? Is it asset seizure or money buying?
Trump has provided almost no other details about the "reserves" planned in his social media posts, and his use of the term "reserves" seems to mark a shift from the position in the January executive order, which stated "assessing the feasibility of creating and maintaining a national digital asset reserve."
The term "reserves" suggests the government will actively purchase more assets, while the January executive order more indicated retaining the value of $19 billion in seized cryptocurrencies, of which 97.9% are Bitcoin, from dozens of tokens.
BitMEX founder Arthur Hayes also stated:
"Nothing new here. Just words. Let me know when they get congressional approval to borrow money and or revalue the gold price higher. Without that they have no money to buy #bitcoin and #shitcoins."
Risk Warning
Cryptocurrency investment is highly risky, and its price may fluctuate dramatically, and you may lose your entire principal. Please carefully evaluate the risks.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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