Trump's Crypto Bet: XRP's Wild Ride and the Skepticism Surrounding U.S. Reserve
1min read XRP, the cryptocurrency backed by Ripple, experienced a significant rally following President Trump's announcement that it would be part of the proposed U.S. strategic cryptocurrency reserve. However, the price of XRP has since crashed, with a drop of over 13% in the last 24 hours, trading at $2.31 at the time of this report.
Market analysts attribute the sudden price crash to substantial sell-offs by institutional investors, or "whales." Crypto analyst Miles Deutscher noted that XRP has seen all-time high levels of offloading by major holders, which appears to be part of a larger market cycle where whales liquidate their holdings after significant price surges. XRP had already gained around 500% since November 2024, following Trump's victory and the resignation of ex-SEC Chairman Gary Gensler.
Sell-offs of this magnitude can create market uncertainty and volatility, pushing XRP's price downward during this distribution phase. While some investors remain optimistic about XRP's long-term prospects, the sharp correction has left many questioning the feasibility of Trump's proposed crypto reserve. The lack of clarity surrounding the reserve's implementation has added to market uncertainties.
Skepticism is growing around the feasibility of Trump's proposed national crypto reserve. Political analysts and financial experts have debated the implications of the government's involvement in highly volatile cryptocurrency markets. Critics argue that putting taxpayers' money into such highly volatile digital assets inherently involves an exceedingly high risk. Meanwhile, questions remain about the actual workings of the reserve, including whether congressional approval is necessary. Experts suggest that Bitcoin might take precedence over other altcoins like XRP due to the sheer dominance of BTC in the market.
Despite the recent price moves, XRP remains a front-running currency in its category. Trump's announcement is significant at a time when there is still great uncertainty surrounding its price path in the near term. Market attention will be focused on the unfolding of events, especially how the changes are received by policymakers and big-money investors. XRP is still under pressure, but its long-term outlook remains a topic of debate among investors and analysts.
