Trump Announces Crypto Reserve – FinanceFeeds

In a move that caught the crypto markets by surprise, American President Donald Trump announced the creation of a Crypto Reserve that would include BTC, ETH, XRP, SOL, and ADA. The creation of a crypto reserve has been in the works for some time now but the announcement’s timing has been unclear. Also, with the markets falling by a lot over the last week and the US govt not giving out any signals, it looked bleak for the crypto markets last week.

But all that happened last week seemed to be a well-timed move by the bulls to shake out the weak holders as the announcement of the crypto reserve today led to crypto prices shooting up within a couple of hours. BTC prices are up by 7%, ETH by 11%, SOL by 16% and XRP by 26% for the day as at the time of writing this article. The bullishness in the market is expected to continue in the coming days as the mechanics of the crypto reserve become more clear with each passing day. Right now, the details are very minimal and sketchy and there seem to be more questions than answers at this point.

Questions Raised by the Crypto Community

One of the main questions that has been raised by the crypto community is the lack of transparency in the choice of the tokens for the crypto reserve. But it was fairly clear that BTC was to be in the reserve with ETH and XRP also gaining favor, the choice of SOL and ADA has come as a surprise for the community as they did not seem to be anywhere in the picture over the last few weeks. But enough hints had been dropped by their founders that something big was afoot and it appears now that they were talking about the inclusion of their tokens in the reserve.

There are also allegations of insider trading as it is pretty clear that the tokens were chosen over a period of time and after several rounds of discussion and it is likely that specific sets of people within those teams were aware of the same. With the funds and companies related to the Trump family also actively engaged in accumulating several different types of tokens, the noise around insider trading keeps getting louder.

But overall, this seems to be a very positive development for the crypto community as it gets further endorsed by the US govt and the SEC, which had been going after multiple crypto companies over the last couple of years also backing off now, it is clear what direction the US administration is going to take concerning crypto and this is a boost for the crypto and blockchain community. There is still scope for a lot of reform in the US laws for the crypto community and it is widely expected that these will also be put into motion in the coming weeks. With this announcement, volatility is set to return to the crypto markets and it will be interesting to keep an eye on further developments.