Bitcoin Retreats After Initial Surge on Trump’s Crypto Reserve Proposal

Bitcoin’s value surged after former U.S. President Donald Trump announced his proposal for a national strategic reserve of cryptocurrencies, including Bitcoin, Ether, XRP, Solana, and Cardano. However, the excitement was short-lived as Bitcoin dropped 8% from its Sunday high, reflecting market uncertainty over the specifics of Trump’s plan.

Despite a brief 2.4% rise from Friday’s levels to $86,292, Bitcoin’s rally faded, with Ether, XRP, Solana, and Cardano also facing significant losses. The announcement has sparked both enthusiasm and skepticism within the crypto industry.

Crypto investor Anthony Pompliano criticized the proposal, calling it a “random smattering of speculative tools” that could benefit insiders at the cost of taxpayers. Meanwhile, Cameron and Tyler Winklevoss argued that only Bitcoin qualifies as a reserve asset, raising doubts about including other cryptocurrencies.

Trump’s announcement has revived interest in digital assets, but the market remains cautious as investors await more concrete details. With Bitcoin recently experiencing its steepest monthly decline since June 2022, analysts warn that government intervention could either stabilize or disrupt the crypto market.