Original｜Odaily Planet Daily ( @OdailyChina )
Author: Wenser ( @wenser 2010 )
It’s back, everything is back! After Trump was elected as the US President in November last year, the “Trump effect” took effect again, pulling the crypto market, which had gradually turned into a bear market node, back to the bull market rhythm.
At around 11 pm yesterday evening, Trump posted on Truth Social: I am instructing the Presidential Working Group through a digital asset executive order to advance strategic reserves of cryptocurrencies including XRP, SOL and ADA. I will ensure that the United States becomes the worlds cryptocurrency capital. We are making America great again! He then added : Obviously, BTC and ETH, like other valuable cryptocurrencies, will be at the core of the reserve. I like Bitcoin and Ethereum, too! David Sacks, director of AI and cryptocurrency at the White House, followed up with a statement that more valuable cryptocurrencies may be added to the cryptocurrency reserve.
Odaily Planet Daily will briefly analyze the cryptocurrency reserve news in this article and sort out the relevant views of market participants for readers reference.
The market rebounded rapidly: BTC, ETH, and SOL recovered significantly after falling, and XRP and ADA rose by more than 20% in 24 hours
According to Coingecko data , the total market value of the cryptocurrency market is currently reported at $3.2 trillion; according to OKX market data, as of the time of writing,
The price of BTC once rebounded to $95,000, and has now fallen back to around $92,900, a 24-hour increase of 7.42%;
The price of ETH once exceeded $2,500, and has now fallen back to around $2,400, a 24-hour increase of 9.69%;
The price of SOL once approached $180, but has now fallen back to around $171, a 24-hour increase of 18.2%;
The price of XRP once approached $3, but has now fallen back to around $2.8, a 24-hour increase of 24.22%;
The price of ADA once exceeded $1.1 and now remains around $1.07, with a 24-hour increase still above 60%.
Previously, after Trump sounded the clarion call for a tariff war, combined with a series of other factors, the crypto market and the U.S. stock market experienced a flash crash. The price of BTC once fell below $80,000, dropping to $78,000; the price of ETH once fell below $2,100, dropping to around $2,000. Now, thanks to Trumps re-emergence of power, the crypto market has risen, and people cant help but sigh: Success or failure is due to Trump. The safety of cryptocurrency all depends on the president.
Although market sentiment has ushered in a new wave of upsurge, at present, the crypto market has not yet emerged from the deep waters, but is facing the next wave of major tests.
On March 7, Trump will host the first White House Cryptocurrency Summit , bringing together industry leaders to discuss regulatory policy, stablecoin oversight, and the potential role of Bitcoin in the U.S. financial system. According to an announcement previously issued by David Sacks, White House Special Advisor for AI and Cryptocurrency, attendees will include well-known founders, CEOs, and investors from the cryptocurrency industry, as well as members of the Presidents Digital Asset Task Force. Sacks was appointed White House Special Advisor for Artificial Intelligence and Cryptocurrency on December 6, 2024, responsible for developing a legal framework that will give the cryptocurrency industry the clarity it needs and thrive in the United States.
Notably, at least 24 states have proposed legislation related to potential Bitcoin reserves.
The upcoming summit could set the tone for cryptocurrency regulation over the next four years.
In addition, market participants have different attitudes towards Trumps open call to promote cryptocurrency reserves, and are not unanimously optimistic.
Market insiders: Trump’s remarks are aimed at the political situation, and this move may pave the way for BTC strategic reserves
After Trumps speech, many people in the crypto market also expressed their attitudes and opinions. At present, most people believe that Trumps move is not really for the sake of the crypto industry, but more for his own political life. The following are some representative opinions:
Arthur Hayes: Crypto reserves are just talk, the US has no budget
Regarding the “cryptocurrency reserves”, BitMEX co-founder Arthur Hayes commented : “There is nothing new here, just empty talk. Wait until the crypto task force gets congressional approval to borrow money or revalue the price of gold. Without these, they have no money to buy Bitcoin and altcoins.”
Coinbase CEO: Bitcoin is the best choice for strategic reserves
Coinbase co-founder and CEO Brian Armstrong commented on social media about Trump is advancing the cryptocurrency reserve plan and said that in terms of asset allocation for strategic reserves, Bitcoin may be the best choice. As the successor to gold, Bitcoin has the simplest and clearest narrative. If people want more variety, they can use market capitalization-weighted indexes for crypto assets to maintain fairness, but it may be easiest to just choose Bitcoin.
Consensys founder: Thank you Trump for his epic call, I once gave his team a deep understanding of Ethereum
Joseph Lubin, founder of Consensys and co-founder of Ethereum, published an article praising Trumps calling behavior, saying that this was an epic call and that President Trump was a responsive and confident leader, thank him.
Joseph Lubin explained that he and his colleagues at Consensys spent a lot of time in Washington, DC before and after the November 5 election to let the Trump administration understand the status, maturity, and capabilities of Ethereum. The Trump family is very keen to build many businesses on Ethereum. Of course, they will use other chains and tokens as appropriate, but other than holding BTC, no other platform is a prudent choice for high-value projects, such as DeFi and RWA.
Taproot Wizards founder: Proposing a “strategic reserve of altcoins” is a typical negotiation strategy of Trump
Placeholder VC partner Chris Burniske retweeted Taproot Wizards founder Udi Wertheimers views on social media.
Udi Wertheimer said that the best interpretation of the strategic reserve so far is that it is just a typical Trump negotiation strategy. To achieve a real reserve, Trump must convince Congress, and he cannot decide on his own. Whenever Trump needs to convince other stakeholders, he always starts with a ridiculous proposal and can back off later, such as the previous Gaza plan, the annexation of Canada, and now the ADA strategic reserve. So, in Trumps chess game language, this means that he is telling Congress: If you dont agree to the Bitcoin reserve, I will propose more outrageous conditions.
Bitwise CEO: Imagined Crypto Strategic Reserves Only Include Bitcoin
Hunter Horsley, CEO of Bitwise , wrote : I saw Trumps statement today. Like everyone else, I imagined that the strategic reserve would only include Bitcoin, which makes the most sense to me. Many crypto assets have advantages, but we are not talking about the US portfolio here, we are talking about reserves, and Bitcoin is the undisputed means of storing value in the digital age. Of course, I am grateful that the new government has such a constructive view on this area. Look forward to learning more ideas here.
CZ: Trump will also include other cryptocurrencies in his reserves, no need to over-interpret
Binance co-founder CZ said in a post that Trump mentioned that BTC, ETH and other valuable cryptocurrencies will be included in the crypto strategic reserve. Now the markets attention is focused on the word other, paying attention to which other cryptocurrencies will be included, but he hopes to remain calm and there is no need to over-analyze. More valuable cryptocurrencies may be added over time, and more countries will follow suit. In addition, CZ also expressed the hope that the community has seized the opportunity to buy on dips, but remember that any decisions and operations must be made by yourself.
In summary, due to the launch of Trumps official meme coin Trump on the eve of his inauguration and his slow response to crypto policies after taking office, most market participants are cautiously optimistic about Trumps cryptocurrency reserve statement, and are more inclined to believe that it can promote BTC as a crypto reserve. Trumps move to promote cryptocurrency reserves is also worth pondering, because if he really wants to promote actual implementation, Trump either needs to convince the Federal Reserve or implement it through the Treasury Department, and both paths face various obstacles or the test of time. We have previously discussed this in detail in the article Trumps Secretary of Commerce joins hands with Tether, and the US Bitcoin strategic reserve is beginning to take shape.
As of now, the probability of Trump establishing a strategic Bitcoin reserve within 100 days of taking office on Polymarket has risen to 21%, with the amount of bets being around $7.74 million. On January 20, the day Trump was sworn in as president, the probability of the bet once rose to 48%.
Polymarket indicator
Conclusion: Trump is well versed in negotiation, and the crypto market has become a vassal of the US political situation
Mr. Lu Xun mentioned in his article Silent China in 1927: The Chinese people always like to reconcile and compromise. For example, if you say that the room is too dark and you want to put a skylight here, everyone will definitely not allow it. But if you advocate tearing down the roof, they will come to reconcile and be willing to put in the skylight.
In fact, this is a universal negotiation skill, and Trumps cryptocurrency-friendly statements are also a manifestation of his deep understanding of this. Because he understands that promoting the strategic reserve of cryptocurrency is bound to face a series of resistance, especially now that the Republicans do not have an overwhelming advantage in seats in both houses.
But in any case, it is undeniable that after stablecoins such as USDT and USDC occupied the mainstream position in the crypto market and BTC and ETH spot ETFs landed on the US stock market, Trumps coming to power, the release of the official Meme coin, and the establishment of a cryptocurrency advisory committee have further strengthened the impact of the US political situation on the crypto market.
To a certain extent, the crypto market has become a bargaining chip in U.S. political games.
