Trump reiterates encryption strategic reserves, market welcomes Rebound

Recently, the market has experienced a significant decline, with the prices of major cryptocurrencies dropping notably. In this situation, former U.S. President Trump has once again proposed an encryption strategic reserve plan, injecting a dose of confidence into the sluggish market.

Trump posted on social media stating that he will accelerate the implementation of the encryption reserve plan that includes five major currencies. He pointed out that this initiative aims to boost the encryption industry and free it from the current government's suppression. Trump also mentioned that he will issue an executive order on digital assets, instructing the presidential task force to promote the establishment of an encryption strategic reserve, which includes currencies such as XRP, SOL, and ADA. He promised to ensure that the United States becomes the global cryptocurrency capital.

This news quickly boosted market sentiment. Bitcoin rebounded rapidly from $85,000 to $95,000, with a maximum increase of over 10%. Ethereum also rose to around $2,550. The several cryptocurrencies explicitly mentioned by Trump saw even more astonishing increases, with ADA rising over 70% within 24 hours, XRP briefly reaching $2.99, and SOL also returning above $170.

However, some industry insiders have expressed doubts about Trump's move. Some analyses suggest that this action by Trump may involve suspicions of interest transfer. Several cryptocurrencies listed on the reserve list show signs of capital lobbying. For example, Ripple had previously donated to Trump’s campaign, indicating a close relationship. There are also those who point out that some of the nominated cryptocurrencies still face regulatory issues, and including them in the national reserves may be inappropriate.

From a practical operational perspective, establishing encryption reserves is no easy task. First, there is the issue of funding sources. Currently, the U.S. government is facing a huge deficit, and it is unrealistic to allocate funds to purchase cryptocurrencies. Secondly, if reserves are to be established at the federal level, congressional approval is required, a process that may encounter many obstacles. Even bypassing Congress and starting with sovereign funds would require encryption companies to contribute more political donations.

Nevertheless, Trump's statement undoubtedly had a positive impact on the market. At a critical moment on the border between bull and bear, this news injected new vitality into the sluggish market. Market participants are looking forward to the upcoming White House encryption summit, hoping it will bring more favorable news. In any case, Trump's remarks once again prove that political factors remain one of the important variables affecting the encryption market.