Crypto Vote: Trump’s Plan Faces Congress, Rally Risk
Crypto markets got a jolt of energy and prices jumped after former US President Donald Trump mentioned the idea of a strategic crypto reserve. However, experts are already suggesting this excitement might not last very long.
On March 2nd, according to a Cointelegraph report, Trump stated that his Working Group on Digital Assets was instructed to consider including three other cryptocurrencies—XRP, Solana, and Cardano’s ADA
— in the US crypto reserve. He also mentioned it would “obviously” feature the big players like Bitcoin
and Ethereum
, in another post on Truth Social.
This announcement acted as a major catalyst, sparking a widespread crypto market recovery. The total value of the crypto market worldwide jumped almost 7%, hitting $3.04 trillion, and Bitcoin even broke through the $95,000 barrier, boosted by a 7.7% surge during the day.
Source: Donald J. Trump via Truth Social
Despite the positive momentum, analysts like Aurelie Barthere, a principal research analyst at blockchain analytics firm Nansen, believe this upward swing could be fleeting. She points out that setting up a US crypto reserve is a complicated affair that requires Congressional approval. In her words:
“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.”
Looking at other market signals, some analysts are wondering if we might be approaching a market bottom. Crypto intelligence platform IntoTheBlock notes that Bitcoin’s active addresses hit a nearly three-month peak on February 28th. This could indicate a “crucial turning point” and potentially even a “capitulation moment” in the market.
Related: Related: Solana down 45% since Trump token launch as memecoins divert liquidity
Analysts Predict Short-Term Swings
Following Trump’s announcement about including them in the US strategic reserve, ADA, SOL, and XRP have been performing better than the rest of the crypto market.
ADA, SOL, XRP, 1-day chart. Source: Cointelegraph
However, another research analyst at Nansen, Nicolai Sondergaard, suggests that the crypto market’s potential for further gains might be restricted, and we could see considerable volatility in the near future.
The analyst told 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).”
He further added, “No matter how long this positive trend lasts, it’s a good sign for the market right now. But the real question is whether this strategic reserve idea will actually become reality. If it doesn’t pan out, it could end up being bad news for crypto.”
Related: Ronaldinho launches token with 35% insider supply, hits $397M market cap
Yet, crypto investors are also keeping an eye on other upcoming events that could boost the market. One such event is the first White House Crypto Summit, scheduled to be hosted by Trump on March 7th.
Details about the summit’s topics are still scarce, but key issues like stablecoin regulations and laws about a strategic crypto reserve have been hot topics in US regulatory discussions lately.
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