Bitcoin retreated after early gains for a Trump reserve proposal

Bitcoin initially rose on Monday (4 March 2025) after US President Donald Trump proposed to obtain a national strategic reserve, but optimism faded when merchants wait for more details about the plan.

After 2.4 % from Friday to 86292 dollars, Bitcoin later decreased by 8 % of Sunday levels. Follow the ether in a similar trend, as it decreased by 4.3 % from Friday and 16 % from Sunday. Other cryptocurrencies have seen sharp declines – XRP decreased by 15 %, Solana slipped by 16 %, and Cardano decreased by 19 % from the peak on Sunday.

Trump January Executive order In digital assets, this stage was placed on the reserve, but its announcement on Sunday about Truth Social was the first time that it was called specific encrypted currencies: Bitcoin, Eter, XRP, Solana and Cardano. Leave the lack of more market details.

Market interactions and fears

Anthony Boxbrano, CEO of PROFESSIONAL CAPITAL Management, has expressed doubts about the proposal in a message to investors. Despite the occupation of a big position of Solana, the reserve was called a “random atom of speculative tools” that could benefit the families at the expense of American taxpayers.

Cameron and Tyler Winkefos founders also raised concerns, on the pretext that Bitcoin is the only cryptocurrency that meets the standards of backup assets.

The last bitcoin fluctuations

Bitcoin has been struggled in recent weeks, as more than 17 % decreased in February, the worst monthly decrease since June 2022. The cryptocurrency has lost more than a third of its value since it reached $ 105,000 in early January, partly driven by the lack of disappointment due to Trump’s work in regulating encryption.

While Trump’s election in November closed speculation that he would store the strategic Bitcoin, there is a few movement that exceeds the appointment of friendly encoding officials.

IG Tony Sikammore’s analyst indicated that how to finance the reserve is still unclear. If the government is using taxpayer money to purchase encryption, it may provoke the opposition. Instead, if the reserve is funded by the encrypted currencies from the law enforcement procedures, it may not generate a new demand in the market.

The five chosen Trump currencies

Trump’s advertisement launched five encrypted currencies to be included in the proposed strategic coding reserves.

1. xrp

XRP, created by Ripple, is the third largest encrypted currency, with $ 140 billion trading. Ripple XRP has placed as a fast and low -cost method for global transactions and was active in pressing friendly regulations for encryption.

The legal battle of Ripple with SEC on whether XRP has been sold as an unregistered guarantee ended with a partial victory of the company. The CEO of Brad Garlinghouse, who met Trump, welcomed the proposal to reserve.

2. Solana (Sol)

Solana, whose Blockchain is often used, is often used in Meme and NFTS currencies. Trump’s private coin, which was launched in January, depends on Solana.

The price of the distinctive symbol increased in 2021 but decreased in 2022 due to its association with the FTX Founder Sam Banglan Farid, who was a major supporter. Solana is managed by the Soliana Foundation, a Swiss -based November Foundation.

3. Cardano (ADA)

Cardano was founded in 2015 by Charles Hoskinson, co -founder of Ethereum. There are ADA codes of $ 31.4 billion, making it the eighth in the largest encrypted currency.

Cardano has seen the largest rise in the Trump advertisement, as it briefly increased more than 70 % of Friday levels before decline.

4. Bitcoin

The largest encrypted currency, Bitcoin value is a market value of $ 1.7 trillion, and it represents more than half of the $ 3 trillion encryption market.

Bitcoin jumped in late 2023 and early 2024, driven by two main factors:

• The approval of the US Securities and Stock Exchange Authority for the boxes circulated on the Bitcoin Stock Exchange (ETFS) in January
• Trump’s election, which sparked the hopes of profit policies

However, the last decline highlights the continuous volatility in the market.

5. Ether (ETH)

Ether, the encoded currency of Ethereum Blockchain, is the second largest digital asset. Unlike Bitcoin, Ethereum aims to support decentralized financing applications (Defi) that operate without intermediaries.

Trump has released an encrypted international company, Liberty Financial, digital codes that depend on ETAREUM, selling more than $ 500 million so far.

What is the strategic reserve for encryption?

On January 23, the Executive Order clarified the establishment of a national stock of digital assets under a new federal regulatory framework. This initiative is honored by the presidential working group in the digital asset markets, which includes:

• White House AI and Crypto CZAR
• US Treasury Secretary
• SEC President

On Sunday, Trump’s Post was the first indication that this reserve would extend beyond Bitcoin to include ether, XRP, Solana and Cardano.

However, there are still many questions that have not been answered, including:

• How many encoded currency will be held?
• How will the government get these assets?
• Will taxi boxes be used, or does the reserve depend on the seized digital assets?

More details may appear at the top of the White House encryption on Friday, when Trump is expected to meet with industry leaders.

The purpose and criticism of the strategic encryption reserve

Supporters argue that the encryption reserves can work similar to the strategic petroleum reserve, helping the United States to hedge against financial risks and diversifying government holdings.

Critics, however, refer to the main risks:

• Curricula is very volatile and may not be reliable as backup assets.
• Altcoins inserts like Solana and Cardano can use an unpopular manner from the private industry players.
• If taxpayers are used, the program may face great opposition.

Kathleen Brooks, Director of Research at XTB, noticed the paradox of Bitcoin’s dependence on US government policies, saying that the cryptocurrency – is determined to be central and independent of government control – is now linked to organizational decisions.

Currently, investors are waiting for more clarity. Until more details are detected, the Bitcoin gathering may struggle to keep it, and the broader encryption market may remain volatile.

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See also: How Lazarus has become a global threat to Sony to Bybit

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