Crypto Vote: Trump’s Plan Faces Congress, Rally Risk
Cryptocurrency markets perked up recently! It all started when former US President Donald Trump mentioned a strategic crypto reserve, but experts are already suggesting that this market boost might be temporary.
On March 2nd, Trump indicated that his Working Group on Digital Assets had been instructed to consider including three altcoins – specifically XRP
, Solana , and Cardano’s ADA
– as part of this US crypto reserve, as reported by Cointelegraph. He also added that the reserve would “obviously” include the big players, Bitcoin
and Ether
, according to another post on Truth Social.
This news really got the markets moving! The total value of the crypto market worldwide jumped almost 7% to reach $3.04 trillion. Bitcoin even broke past the $95,000 mark after a significant 7.7% climb during the day.
Source: Donald J. Trump
However, don’t get too excited just yet. Aurelie Barthere, a principal research analyst at blockchain analytics firm Nansen, suggests this rally might not last. She points out that setting up a US crypto reserve is a complicated process that requires approval from Congress, which takes time.
“I think constituting a reserve by buying new tokens is a complex process that will need Congress’s vote, so it will take time. I would be a bit wary of the sustainability of today’s move.”
Some analysts are also hinting that we might be approaching a market bottom. They noticed that Bitcoin’s active addresses hit a near three-month high on February 28th. Crypto intelligence platform IntoTheBlock believes this could mean the market is at a “crucial turning point,” possibly indicating we’re reaching a “capitulation moment.”
Related: Related: Solana down 45% since Trump token launch as memecoins divert liquidity
Analysts warn of short-term volatility
It’s worth noting that ADA, SOL, and XRP have done better than the overall market since Trump mentioned them being included in the US strategic reserve.
ADA, SOL, XRP, 1-day chart. Source: Cointelegraph
Despite the positive vibes, Nicolai Sondergaard, another research analyst at Nansen, suggests that the crypto market’s potential for further gains might be limited right now, and we could see some significant ups and downs in the near future.
He shared with Cointelegraph:
“As Aurelie mentions it likely will not be that easy and I expect volatility in these tokens today especially (already seen in ADA nearly touching $1.17 and now sitting at $0.94).”
“No matter how long this positive trend lasts, it’s definitely good news for the market for now. But the big question is whether this plan will actually happen. If it doesn’t, it could become a negative signal for the crypto world,” he added.
Related: Ronaldinho launches token with 35% insider supply, hits $397M market cap
Looking ahead, crypto investors are still keeping an eye on other industry developments that could give the market another boost. One of these is the first White House Crypto Summit, scheduled to be hosted by Trump on March 7th.
While we don’t have many details about what will be discussed at the summit, stablecoin regulations and the idea of a strategic crypto reserve have been hot topics in US regulatory discussions lately.
Magazine: SCB tips $500K BTC, SEC delays Ether ETF options, and more: Hodler’s Digest, Feb. 23 – March 1
