A rally in digital assets faded on Monday despite new promises from Donald Trump about a We crypto reservea strategic stock of digital assets.
The president revealed Sunday on Truth Social that the reserve would include Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Solana (Sol) and Cardano (ADA). This marked the first time he publicly described which digital assets would be included.
A short-lived crypto power
After Trump’s service, Bitcoin (BTC) rose over $ 94,000 Monday morning and turned the recent declines. However, Rally was short -lived, as BTC fell below $ 86,000 in the afternoon, marking a decline of 9%.
Bitcoin remains 21% from his highest period of over $ 109,000, reached the day of Trump’s inauguration in January. Other major crypto courses followed, with Ethereum (ETH) which fell above 15%, XRP (XRP) and Cardano (ADA) both decreased 17%, and Solana (SOL) falls 18%.
Trump’s commitment to the US Crypto Reserve
The US Crypto Reserve is one of Trump’s biggest crypto-related promises. He previously promised to make the United States “the planet’s crypto” and signed a crypto-focused executive order in January.
This executive order created a president’s working group for digital assets, which has the task of evaluating the feasibility of a national digital asset storage. The order also suggested that cryptocoirs that were legally seized by the government could contribute to this reserve.
David Sacks, Trump’s AI and Crypto Czar, confirmed in early February that the administration was in the “very early stages” of exploring a Bitcoin reserve.
If implemented, the inclusion of Solana (SOL), XRP (XRP) and Cardano (ADA) in the reserve can significantly increase their legitimacy. Unlike Bitcoin (BTC) and Ethereum (ETH), these digital assets lack strong support from Wall Street Institutions.
Congressional approval and market uncertainty
While Trump’s executive order began the discussion, the creation of a US Crypto Reserve may require Congress’s approval. Legislators, including Senator Cynthia Lummis, have proposed a government-crawling-opening program that would enable the Federal Reserve to buy bitcoin with certificates similar to gold reserves.
Lummis emphasized that Bitcoin’s short -term volatility would not overshadow its long -term value as a strategic asset. She claimed that a cryptoic reserve can help stabilize the government’s holding and supplement the US dollar status as a global reserve currency.
“We need to help people understand that Bitcoin vollatility is normal,” Lummis said in an interview with Yahoo Finance. “A strategic reserve allows us to keep Bitcoin in the long term and isolate it from short -term market fluctuations.”
Trump’s personal crypto investments
Trump himself actively engages with the Cryptocurrency market. Just before his inauguration, his team launched two Meme coins on Solana Blockchain: one for the 47th President (Trump) and another for First Lady Melania Trump (Melania).
These symbols, however, encountered steep declines on Monday, with Trump that dropped 25% and Melania fell by 15%.
What is next for the US Crypto Reserve?
Further details about the US Crypto Reserve may emerge at a Cryptocurrency summit this Friday, where Trump is expected to speak. Investors and decision makers will look carefully for clarifications on how the reserve would work and if it requires legislative approval.
Despite the uncertainty, Trump’s pro-crust-standing continues to influence the market term. As a Monday’s price measure, it may not only be enough to maintain a rally.
At the moment, the future of US crypto reserve remains uncertain, with both tension and skepticism about its potential impact on the digital asset landscape.
Picture: Freepik
