Trump's Crypto Reserve Plan Sparks Altcoin Surge, Bitcoin Dominance Drops

Bitcoin's dominance has fallen below 50% following U.S. President Donald Trump's announcement of a crypto reserve plan that includes XRP, Solana, and Cardano. The move has sparked a rally in altcoins, with Cardano and XRP surging by 60.3% and 34.7% respectively over the past 24 hours. Bitcoin, which initially rose by 10% to $94,220, has seen its dominance slip to 49.6%.

The Trump administration's decision to include altcoins in the crypto reserve has been met with criticism from some Bitcoin enthusiasts and even a Bitcoin critic. Peter Schiff, a well-known Bitcoin critic, questioned the logic behind including XRP in the reserve, stating that he could understand the rationale for a Bitcoin-only reserve but not for an XRP reserve.

Bitwise's head of alpha strategies, Jeff Park, and Casa's CEO Nick Neuman, have both criticized the move, arguing that the only crypto asset that makes sense for a country's strategic reserve is Bitcoin. Pierre Rochard, vice president of research at Bitcoin mining firm Riot Platforms, believes that the crypto reserve will naturally become Bitcoin-only as altcoins trend to zero relative to Bitcoin.

The Crypto Strategic Reserve was established following weeks of evaluation by the President's newly formed Working Group on Digital Assets, led by executive director Bo Hines and David Sacks, the White House's AI and crypto czar. Trump will host the first White House Crypto Summit on March 7, inviting industry leaders to discuss regulatory policies and stablecoin oversight, which will be chaired by Sacks and administered by Hines.