Trump Sparks Crypto Rally by Saying More Coins to Be in Reserve

The cryptocurrency market roared into March with a rally, recouping some of the losses from the asset class’s worst month since 2022, after President Donald Trump once again talked up his plan for a strategic crypto reserve. In a Truth Social post on Sunday, Trump said his January executive order on crypto “directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA.” The inclusion of XRP and ADA tokens in Trump’s plan were surprising, according to Andrew Tu, head of sales at crypto market maker Efficient Frontier. Both tokens had huge rallies on Sunday, leading gains across most digital assets. Trump also said Bitcoin and Ether would be included in the reserve, helping those coins recover some of last month’s steep declines. The announcements from Trump reconfirmed his loyalty to an industry that had showered him with donations and praise during his campaign following a crackdown on crypto companies under President Joe Biden’s administration.

Still, many of the details of Trump’s plan are unknown, including how much the government will actually buy and how the purchases would be funded.

“If expectations don’t meet reality, then markets can potentially retreat again,” Tu said.

“For now, all the bearishness of the past week has been forgotten by markets,” he said, while adding that macroeconomic concerns are still an overhang that could cause crypto prices to retreat again should equities do the same. The tokens Trump said would be included in the reserve are all among the top eight cryptocurrencies by market value, according to tracker CoinMarketCap.com. The only ones among the top eight that weren’t included were Tether and USDC, stablecoins that track the US dollar, and the Binance exchange’s token Binance Coin, known as BNB. Trump had vowed to create a strategic Bitcoin reserve on the campaign trail, one of many crypto-related promises that helped fuel a surge in prices up until the day of his inauguration. While the Securities and Exchange Commission has dropped several cases and investigations into crypto companies in the early weeks of the Trump administration, little had been said about a strategic reserve since he took office. David Sacks, the president’s artificial intelligence and crypto czar, said on Feb. 4 that administration officials still needed to study the feasibility of the plan. Trump’s crypto-related executive order — issued in January — didn’t mention any specific tokens and referred only to the possibility of a “national digital asset stockpile,” the potential creation and maintenance of which should be evaluated by a White House working group. Bitcoin had fallen as much as 28% from its last record above $109,000 on Jan. 20, the day of Trump’s inauguration, through Friday. It posted an 18% drop in February. 

After Trump’s posts on Sunday, Bitcoin jumped 9% to above the $94,000 level. Ether, the second-largest digital token, rallied nearly 13% to above $2,500.

Trump’s comments “have resulted in participants rushing to reestablish long positions and are serving as a spectacular tailwind for prices,” said Spencer Hallarn, global head of OTC trading at crypto investment firm GSR.

 Nick Note:   I’m getting excited now! I’m drooling all over myself,  I’ve been waiting a long long long time to get at this bubble market. With the Trump inauguration Bitcoin put in a record high hitting  Bitcoin  $110,000. These are valuations that are just over the moon. A bubble … a very tricky bubble to trade. But there comes a time when every bubble meets it’s demise. And I believe that time is coming very quickly for Bitcoin to meet its maker. The demise is neigh. We got a  sophisticated cyber attack on bitcoin using a quantum computer for sure.  And this is the first time that’s happened. As a result of the hack Bitcoin  that was trading at 109,000 plunged 30% and put in a low below $78,000. That was the biggest drop in over 2 years causing the Bitcoin boys to panic. Their  savior waved his decree magic wand  and trump declared that they’re going to have a Bitcoin conference on Friday. And that conference is addressing one key issue, establishing a reserve fund. Let me explain this because its the classic situation where you want to buy the rumor and sell the fact.  In order to get a reserve equivalent to what banks or the Treasury  or the Fed Reserve holds its around 7%  Bitcoin in order to have a credible reserve would have to have two trillion dollars in the  fund that guarantee against runs, fraud, Quantum Computer extortion and just plain panic. And  it would have to have a central authority to collect, regulate and administer said fund. The fact is none of this exists and never will. There’s no way anyone is willingly putting up that much money. And without a central regulator with the power to demand a reserve from exchanges and audit them this no more than a pipe dream publicity stunt. Here comes the sell the facts part. They’re talking about a few billion dollars and that will be a big disappointment to market… The devil is in the details. So let me explain, they’re going to take some of the confiscated Bitcoins at the US treasury and government holds and put into said fund. I see that fund at the most getting the 10 billion dollars or less. With no regulated authority to administer the funds… A freeging goat rope.  At best this will create a false sense of security, Bitcoin is on the verge of getting hacked to death with quantum computers as the Lazarus hacking consortium passed its proof of concept hack with flying colors. Now the hacker consortiums needs to scale up the algorithms, the complicated mathematic formulas, the test case proved feasible.  It’s just a question of scaling up and timing.  I never saw a panic from  a hack before like this last  one. That tells me that their are  very week-longs and its a very weak market.  So we want to wait for the Friday bitcoin love convention.  I see us in the aftermath of the bitcoin love fest beginning operations.  I’ll be posting for you a trade reco outlining my strategy for this market. Its the biggest bubble i have ever seen And it will be the biggest bust….