President Donald Trump announced on Sunday that he had removed his encryption group “to move forward” with the creation of a coding strategic reserve, which will include Bitcoin, Ethereum, XRP, Solana, and Cardano.
The advertisement sparked a large gathering in the cryptocurrency market.
Bitcoin initially rose from about $ 85,000 to about 95,000 dollars before settling at about $ 93,000.
Cardano and XRP also witnessed great gains, increasing about 40 % and 16 %, respectively.
Bitcoin at 500 thousand dollars?
Jeff Kendrick, head of digital asset research at Standard Charterd, pointed to the sharp fluctuations and reaffirmed his long -term ups in Bitcoin.
Keep the bitcoin price of $ 500,000, setting a time line as BTC could reach $ 200,000 by the end of 2025, $ 300,000 in 2026, $ 400,000 in 2027, and $ 500,000 by 2028.
Kendrick attributed this expectation to the increasing role of Bitcoin as the origin of a global investment and hedge against traditional financial risks.
Kendrick also suggested that Trump’s proposal may lead the United States of America to create its Bitcoin reserves, which may match federal government property estimated at 200,000 BTC.
Located in Montana, Northern Dakota, South Dakota, and Woewang have rejected proposals for the creation of coding reserves at the state level in recent weeks, noting fears of fluctuations and risks. According to Bitcoin laws, 24 states have provided similar bills.
Not everyone is convinced of Trump’s encryption reserves
However, the TD Cowen Investment Bank expressed its doubts about the plan, describing it as “uncomfortable” and lacking clarity in financing.
The bank’s research group, led by Garrett Seburg, indicated that the original Trump post did not include Bitcoin or Ethereum, raising concerns about his cohesion.
In addition, there was no indication of how the government funded to acquire symbols.
TD Cowen also questioned the importance of describing it as a “reserve” instead of “stock”, indicating that it is still unclear whether the government intends to buy encryption assets or simply carry seized symbols.
Singapore -based QCP Capital suggested that the Trump advertisement was a political timing, most likely aimed at facing negative market trends and stabilizing its approval.
Coinbase Brian Armstrong also criticized the plan, arguing that Bitcoin should only be included.
Joe Lonsale, co -founder of the billionaire of the defensive contractor, who focuses on artificial intelligence and Trump’s voice supporter, criticized the proposal, saying that “it is wrong to impose taxes on encrypted plans” and that the financing of the encryption reserve is “the initial role of the government.”
Jeff Park, a strategic expert at Crypto Index Fund – where the project company in Sacks was an early investor – that the metal currencies outside Bitcoin “a great political miscalculation by Trump.”
The timing of Trump’s advertisement comes before the first White House encryption summit, to be held on Friday and was hosted by Crypto Czar David Sacks.
Trump is expected to make statements at this event, which will combine industrial leaders and major investors.
TD Cowen believes that the summit will provide an insightful look at the management approach in the Stablecoin and Crypto market regulations, but stressed that the partisan framework is still necessary for long -term legal stability in the sector.
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