President Trump’s recent announcement about a “crypto strategic reserve” sent crypto prices soaring, briefly. The proposed reserve included Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). But this excitement was short-lived.
A Quick Rise, A Faster Fall
The initial price jump quickly reversed within 48 hours. Analysts point to Trump’s ongoing tariff policies and investors taking profits amid global economic uncertainty as the main culprits. This led to a widespread crypto sell-off, raising doubts about the long-term viability of the reserve idea.
Industry Skepticism: Bitcoin Takes Center Stage
Several influential figures in the crypto world voiced strong skepticism about the proposed reserve’s composition. Tyler Winklevoss, Gemini co-founder, argued that only Bitcoin is suitable for a strategic reserve.
He believes that a strategic reserve asset needs to be “hard money,” a proven store of value, much like gold. Winklevoss explicitly stated his doubts about XRP, SOL, and ADA’s suitability for this role.
Experts Weigh In: Altcoins Unlikely, Bitcoin Best
Market expert Justin Bennett echoed these concerns, suggesting Trump’s altcoin inclusion is unrealistic and politically infeasible. He believes such a proposal wouldn’t pass Congress. Bennett criticized the proposal for potentially harming the credibility of the crypto space.
Coinbase CEO Brian Armstrong agreed that Bitcoin is the best option for a simple, straightforward strategic reserve. He suggested a market-cap-weighted index as a more diverse alternative, but still emphasized Bitcoin’s superiority.
XRP’s Current State
At the time of writing, XRP is down 14% in the last 24 hours, trading at $2.32. It’s currently 32% below its all-time high of $3.040.
