Trump reiterates encryption strategic reserves, market Fluctuation intensifies

Last week, the cryptocurrency market experienced a rollercoaster Fluctuation. Under the influence of multiple factors, market panic spread rapidly. Bitcoin fell below $80,000, Ethereum approached around $2,200, and other mainstream encryption currencies also retreated to the price levels of the end of last year.

Just when the market was in a slump, Trump proposed the encryption strategic reserve plan again, injecting a shot of adrenaline into the market. He stated that he would accelerate the promotion of the encryption reserve that includes five major currencies. This news immediately triggered a market rebound, but at the same time, it also sparked numerous doubts and discussions.

Trump posted on social media that the United States' encryption reserves will boost this key industry, freeing it from the current government's oppression. He instructed the presidential task force to advance the establishment of an encryption strategic reserve, which includes currencies such as XRP, SOL, and ADA. Trump promised to ensure that the United States becomes the global cryptocurrency capital.

It is worth noting that Trump did not initially mention Bitcoin and Ethereum in his post, which sparked some controversy. He later added, "Clearly, Bitcoin and Ethereum will become the core of this currency reserve."

This news had a significant impact on the market. Bitcoin quickly rose from $85,000 to $95,000, an increase of over 10%. Ethereum also rebounded to $2,550. Several cryptocurrencies specifically mentioned by Trump performed even better, with ADA's 24-hour increase exceeding 70%, XRP briefly touching $2.99, and SOL also rising above $170.

However, this move has also sparked considerable doubt. Some believe it to be an "epic call", while others question the possibility of利益输送 and insider trading. Some industry professionals have stated that including certain cryptocurrencies with legal controversies in the national reserves is an irresponsible practice.

In fact, there are many challenges to truly establishing an encryption strategic reserve. First is the issue of funding sources. Currently, the financial situation in the United States is tight, and it is not realistic to allocate a large amount of funds to purchase cryptocurrencies. Second, this plan needs to be approved by Congress, and the game between the two parties is still intense. Moreover, including some cryptocurrencies that have legal disputes in the reserve may also increase the difficulty of approval.

Nevertheless, Trump's remarks undoubtedly injected a shot of adrenaline into the sluggish market. On March 7, Trump will hold the first White House encryption summit and deliver a speech. Market participants are all focused on whether this summit will bring new surprises or challenges.

Regardless, Trump's remarks have once again triggered significant fluctuations in the market, highlighting the tremendous influence of political factors on the cryptocurrency market. Investors need to remain vigilant, closely monitor policy trends, and view market fluctuations rationally.