Trump's Crypto Advisor Dumps Bitcoin, Solana Holdings Amidst Trade Tensions

Coin WorldTuesday, Mar 4, 2025 11:22 am ET

1min read

Trump's Crypto Advisor Dumps Bitcoin and Solana Holdings, Sparking Market Concerns

In a surprising move, David Sacks, Trump's crypto and AI advisor, has sold all of his holdings in Bitcoin, Solana, and Ethereum prior to taking his position on January 20. This news has raised concerns among investors, as the broader crypto market has experienced a significant slide, with Solana's price diving by 14% in the past 24 hours.

The sell-off comes amidst escalating trade tensions, as President Trump confirmed planned tariffs against Canada, Mexico, and China, and both countries retaliated with their own tariffs. While Sacks' trade did not immediately impact the SOL price, the coin's recovery is now dependent on an improvement in global economic conditions.

Sacks' sale of his crypto holdings may initially seem bearish, but the real issue is the potential conflict of interest. His prior investments in Solana, Bitcoin, and Ethereum could have motivated him to propose policies for his own benefit and the benefit of his portfolio. Although Sacks has rid himself of his personal crypto holdings, his firm, Craft Ventures, remains invested in bitwise, which operates several major crypto ETFs, including a Bitcoin ETF, an Ethereum ETF, and has filed to list a Solana ETF.

This remaining investment in Bitwise could still pose a conflict of interest, but it could also be seen as a positive for crypto, as it may encourage Sacks and, by extension, Trump, to push crypto-friendly policies. However, the current Solana chart shows the altcoin struggling with very low momentum, and it may take several months for consistent rallies to resume, given the potential trade war.

Despite the current market conditions, there are opportunities for traders looking to make above-average profits. Newer alts, such as Solaxy (SOLX), a Solana-based layer-two network, have raised significant amounts in their ICOs and could rally big once they list. Solaxy has raised $24.8 million in its ICO and aims to provide Solana users with lower fees and faster transaction speeds, making it a promising option for traders.

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