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Trump’s Crypto Reserve Reshapes Market, Fuels U.S. Financial Influence

Trump’s Crypto Reserve Reshapes Market, Fuels U.S. Financial Influence
  • Trump’s U.S. Crypto Reserve initiative led to a $300 billion surge in market capitalization, with Bitcoin and Ethereum posting significant gains.
  • CryptoQuant CEO suggested that Bitcoin and Ethereum neutral positioning may limit their influence under Trump’s crypto dominance strategy.
  • Binance founder CZ remains confident about BNB’s future inclusion while hinting at possible national crypto reserves beyond the U.S.

The U.S. Crypto Reserve announcement made by President Donald Trump has caused extreme volatility within the cryptocurrency market. The market capitalization raised $300 billion after the news, which subsequently increased Bitcoin by 8% and Ethereum jumped by 11%. The first assets within the reserve were XRP, Solana, and Cardano until Bitcoin and Ethereum joined it later.

The U.S. Crypto Reserve initiative led CryptoQuant CEO Ki Young Ju to conclude that Washington changes its stance on digital assets. The initial absence of Bitcoin alongside Ethereum from the strategic reserve demonstrates the United States’ decision to treat both assets as neutral instead of critical to exert national influence. According to Ju, the United States uses cryptocurrency to gain financial control across the world and to draw investments from abroad.

Binance Founder Reacts to BNB’s Absence

Binance founder CZ addressed concerns over BNB’s exclusion from the reserve. He advised holders not to panic, emphasizing that the U.S. likely prioritized cryptocurrencies with strong domestic ties. CZ remains optimistic about BNB’s potential inclusion and suggested that other nations may establish their strategic reserves.

The crypto market experienced significant gains after Trump’s announcement. Cardano led the surge, jumping 75%, while Solana and XRP recorded double-digit increases. Investor confidence in selected assets grew, driving momentum across the market. Meanwhile, a new report speculated that Dogecoin, SUI, and Chainlink could be future additions to the reserve.

Bitcoin and Ethereum Face Uncertain Role

Ju highlighted concerns that Bitcoin and Ethereum positioning as neutral assets might limit their influence in the evolving regulatory landscape. He noted that Trump’s approach favors assets with direct strategic benefits, potentially shifting market dynamics. He also suggested that decentralized assets might face challenges under this policy.

The U.S. government’s stance on cryptocurrency has changed significantly under Trump’s leadership. Once met with regulatory skepticism, digital assets are now being treated as financial tools for national interest. Ju warned that this shift could encourage market manipulation due to a lack of oversight, raising concerns about potential risks for retail investors.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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