Ahead of Donald Trump's inauguration as the 47th US president, there is speculation about creating a crypto reserve including Bitcoin and various altcoins.
The Concept of a Crypto Reserve
According to the New York Post, Trump is open to establishing a national crypto reserve that would incorporate Bitcoin and altcoins like Solana, XRP, and Circle's USDC stablecoin. During his campaign, Trump vowed to position the US as a global leader in crypto, aligning with legislative efforts such as Senator Cynthia Lummis’ BITCOIN Act.
Market Reaction
Following this news, Solana (SOL) rose by over 8% to $217, XRP hit $3.35, reaching a new all-time high since 2018, and HBAR also saw an increase of over 10%. These movements reflect market interest in the potential inclusion of these tokens in a crypto reserve.
Expert Opinions
Despite market enthusiasm, the idea of a crypto reserve remains controversial. Quinn Thompson from Lekker Capital commented that 'this is a ridiculous idea and will never happen,' while Anthony Georgiades of Innovating Capital expressed concerns about the centralization of blockchain economies, noting Bitcoin as the only fully decentralized asset.
While the market shows excitement over the news of a crypto reserve, experts remain skeptical, highlighting potential risks of centralized strategies in the cryptocurrency market.
