Trump's Crypto Reserve Plan Sparks XRP, Cardano Sell-off
1min read XRP and Cardano Dip 20% As Crypto Leaders Question Trump’s Reserve Plan
Crypto markets have been in turmoil following Donald Trump's announcement of a US Crypto Reserve, which includes XRP, Cardano, and other US-based tokens. The proposal has been met with skepticism from the crypto community, with many questioning the feasibility and long-term impact of the plan.
XRP and Cardano, two prominent cryptocurrencies, have seen their weekend gains evaporate, with both assets dropping by more than 20%. The crypto market as a whole has been looking bearish, with many investors expressing concern about the potential impact of Trump's proposal on the market.
Samson Mow, a renowned opinion leader in the crypto space, has criticized the decision, stating that President Trump cannot simply purchase the requisite amounts of altcoins. He argues that the Bitcoin Reserve was premised on the notion that the federal government already controls the relevant assets due to seizures. However, Congress will need to approve new purchases, and even some Republican party members might be hesitant to do so.
Arthur Hayes, former BitMEX CEO, has also weighed in on the situation, writing that the proposal is just "words" and that nothing new has been presented. He argues that without congressional approval to borrow money or revalue the gold price higher, the plan has no money to buy Bitcoin and other cryptocurrencies.
Some community members have speculated that Trump named these assets to fend off increasingly dire warnings of a bear market. Although he did cause a pump over the weekend, it completely evaporated by Monday, and the community is not happy. XRP fell by 18%, Cardano dropped by 23%, and the entire crypto market is looking quite bearish.
Joe Weisenthal, Bloomberg analyst, has also commented on the situation, stating that XRP has been relatively flat over the last 10 days despite the literal President of the United States posting its ticker and saying it should be part of a US strategic crypto reserve.
There are also potential hypotheses that President Trump’s choice to include XRP and ADA was largely because of the company’s political donations to his administration. Solana, too, stood to benefit greatly from Trump’s administration, and TRUMP meme coin was launched on the network.
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