Crypto Market Faces Pressure Amid Skepticism Over U.S. Strategic Reserve
Cryptocurrency markets face short-term pressure due to uncertainty regarding U.S. congressional approval of a strategic crypto reserve, according to JPMorgan's report.
- Skepticism exists about including smaller tokens outside Bitcoin and Ether in the reserve due to their volatility.
- President Donald Trump has directed the establishment of a Bitcoin Strategic Reserve for seized assets and called for a stockpile of other cryptocurrencies, previously mentioning XRP, Solana, and Cardano.
- Several states, including Montana and Wyoming, have rejected proposals to include Bitcoin in their reserves over concerns of risk and volatility.
- Central banks like the Swiss National Bank and the National Bank of Poland have opted for stable assets instead of Bitcoin.
- Singapore's central bank stated that cryptocurrencies do not align with its long-term investment strategies.
- The European Central Bank has criticized the use of Bitcoin as a reserve asset, reflecting broader skepticism among policymakers.