March 6, 2025
Diversifying Assets
Over the weekend, President Trump revealed that BTC, XRP, SOL, ADA, and ETH would be part of the reserve. A Washington insider later clarified that the government will focus solely on acquiring Bitcoin, with other cryptocurrencies only being added if seized.
Source: Bitwise
The mindset behind establishing the reserve seems to be centered around the diversification of national assets beyond traditional reserves like gold and foreign currencies.
Market Reaction
Bitcoin surged over 11%, reaching $94,164, following the announcement, while Ethereum (ETH) rose 13% to $2,516. Other cryptocurrencies like XRP, SOL, and ADA also saw gains, but by March 3rd, the market corrected, with Bitcoin dropping to around $86,000.
Moreover, numerous critics, including renowned economist Stephen Cecchetti, have dismissed the idea of establishing a crypto-based reserve due to volatility concerns. Potential issues relating to regulatory gaps and the reserve benefiting wealthy crypto holders have also been raised.
