President Trump said Ali Social media On Sunday that his administration is working to create a “strategic coding reserve” that will include bitcoin and ethereum, along with the least well -known cryptocurrencies XRP, Solana and Cardano. He later continued with another post, saying that his planned reserves will also include Bitcoin and Ether, the most popular cryptocurrencies.
This announcement helped the recovery of encryption prices after the last sales, but for only a few hours. After height to 90,000 dollars on Monday morning, Bitcoin fell to about 87,000 dollars, or 7.3 %, on Monday afternoon. Ethereum 14.6 % fell to $ 2,153. The high prices in XRP, Solana and Cardano also faded, as it decreased 12.1 %, 13 % and 12.3 %, respectively.
Nick Booker, the financial analyst, investor and co -founder of the currency office, said in note that the reason for the temporary price batch was probably a mixture of “homoom” with classic short pressure, “adding that more concrete information was needed about the encryption reserve plan to ask investors of its value.
“While the declaration of the encryption reserves was a bullish incentive for the short -term encryption prices, its long -term effect is still doubtful. For one reason, actual details have not been revealed yet,” Bokerren said.
However, the creation of digital currency reserves is the moment of a milestone for Bitcoin and Blockchain technology.
“The launch of a strategic coding reserve in the United States represents a pivotal moment of digital assets, which reflects a great step in the government’s participation in the encryption industry,” Federico Brooks, President of the United States Company in 21shares, said in an analyst. “This initiative does not enhance the role of Bitcoin as a maturity store, but it also highlights the importance of Blockchain networks such as ETAREUM, Solana, XRP and Cardano in financial infrastructure, payments and decentralized financing.”
What is the strategic reserve for encryption?
As shown in the CEO to request As of January 23, the Crypto Strategic Reserve will be a national stored for the digital assets created under a federal regulatory framework developed by the newly established presidential working group in digital asset markets.
The working group will chair high -ranking officials, including the White House AI & Crypto CZAR, Treasury Secretary and Chairman of the Securities and Exchange Committee, among others.
On the campaign path, Trump pledged to support the “National Strategic National” stock, which will include Bitcoin, which the United States government previously seized in law enforcement procedures. The Sunday announcement was the first time that the government called for other types of encrypted currencies.
The strategic reserve for encryption and its maintenance has not yet been organized, because the White House has not immediately provided additional details, including the amount of each type of cryptocurrency that Trump wants from the United States, and how the government will get it.
But more information can be detected this week, as Trump recently announced that he will speak in the leaders of industry and hosts on Friday at the “Cryptology Summit” at the White House.
“The first White House encryption summit on Friday will be decisive to watch,” Bokerren said. “We will wait to know who will be there, what will be discussed, and whether any actual steps towards implementation are explained. The main question is, how will they finance this reserve and legislate it?
What is the purpose of strategic encryption reserves?
Similar to the Strategic Petroleum Reserve, which protects the American economy from The disturbances in oil suppliesThe National Crypting Reserve will help diversify government holdings and hedge against financial risks, according to the plan.
However, critics say that cryptocurrency fluctuations make them a bad choice as a backup asset.
Possible obstacles
It is possible that the creation of a strategic reserve for encryption is actually required from Congress, as is the case with the Strategic Petroleum Reserve, which was It was created in December 1975 When President Gerald Ford signed the Energy and Conservation Policy Law.
Also, the inserts of cryptocurrencies, unlike bitcoin, are likely to face a sustainable recovery between some corners of the encrypted currency in a largely divided currency. Bitcoin is the oldest and most popular in cryptocurrency, and it represents more than half of the maximum Crypto global market.
The president threw himself as a hero for the encryption industry, which he said in his announcement was the goal of “years of corrupt attacks by the Biden administration.” The encryption industry was unfairly targeted by the Biden administration and severely destroyed Trump to win the elections.
The first few weeks of his administration witnessed several movements to enhance encryption, including the termination or suspension of high -level enforcement procedures by the Securities and Stock Exchange Committee.
The encryption prices increased after Trump’s victory last year, and when the Bitcoin price for the first time was 100,000 dollars in early December, Trump got credit and published “welcome and capacity !!!” On social media.
But prices have decreased since Trump’s opening and Trump has faced criticism, including allies in the encryption industry, to help launch a Mimi’s personal currency Before taking office, he collapsed since then.
The crash of the metal currencies associated with the first lady Melania Trump and Argentine President Javier Millie, as well as the massive penetration of the exchanging of the major cryptocurrency that the FBI said North Korea was also afraid of enthusiasm for encryption.
