Trump’s Altcoin Mention May Serve as Leverage for BTC and ETH Reserve
U.S. President Donald Trump is reportedly using a negotiation tactic similar to real estate strategies to establish a strategic crypto reserve that includes bitcoin (BTC) and ether (ETH), alongside altcoins like XRP, Solana's SOL, and Cardano's ADA. Key points include:
- Initial announcement caused a market cap increase of 11%, adding $300 billion.
- Market enthusiasm waned as critics questioned the inclusion of lesser-known altcoins.
- Trump's plan requires Congressional approval, raising skepticism about its feasibility.
- Critics highlight the lack of established utility for XRP and ADA compared to ETH and SOL.
- CME has not planned futures listings for XRP and ADA, adding further doubt to their inclusion.
- Market reactions typically follow three phases: speculation, announcements, and negotiations.
- Ongoing uncertainty may lead to volatility as investors reassess the situation.
Analysts suggest Trump's mention of altcoins aims to create leverage in negotiations, potentially securing BTC and ETH for the reserve.