- Bitcoin’s dominance drops from 55.4% to 49.6% after Trump unveils a U.S. Crypto Strategic Reserve including XRP, Solana, and Cardano.
- Altcoins surge as Cardano jumps 60.3%, XRP 34.7%, Solana 25.5%, and Ethereum 13.1%, while BTC rises just 10% to $94,220.
- BTC maximalists push back, with critics like Peter Schiff and Bitwise’s Jeff Park questioning the inclusion of altcoins in the reserve.
Bitcoin’s (BTC) dominance in the crypto market took a sharp dive, slipping from 55.4% to 49.6%, following an unexpected announcement from U.S. President Donald Trump. The revelation that the country’s newly proposed Crypto Strategic Reserve would include XRP, Solana (SOL), and Cardano (ADA) alongside Bitcoin and Ethereum sent shockwaves through the digital asset space.
Initially, Trump’s decision was met with skepticism from BTC maximalists who have long championed BTC as the only viable reserve asset. While the President later clarified via Truth Social that BTC and Ethereum (ETH) would remain “at the heart of the reserve,” including altcoins stirred controversy.
After the news, Bitcoin’s price climbed just 10% to $94,220, while altcoins saw explosive gains. Cardano surged 60.3%, XRP spiked 34.7%, Solana gained 25.5%, and Ethereum rose 13.1%, suggesting a broader market shift toward these assets.
Schiff and Bitcoin Maximalists Push Back
Bitcoin critic and gold advocate Peter Schiff expressed bewilderment over the decision, acknowledging that while Bitcoin’s comparison to digital gold made sense for a national reserve, including XRP left him baffled.
“I get the rationale for a Bitcoin reserve,” Schiff noted. “I don’t agree with it, but I get it. We have a gold reserve. BTC is digital gold, which is better than analog gold. So, let’s create a BTC reserve, too. But what’s the rationale for an XRP reserve? Why the hell would we need that?”
Bitcoin-only advocates were quick to condemn the decision. Jeff Park, head of alpha strategies at Bitwise, called Trump’s move a “huge political miscalculation,” arguing that the Strategic Reserve should have focused exclusively on BTC.
CEO Nick Neuman doubled down, stating: “The only crypto asset that makes any logical sense whatsoever as part of a country’s strategic reserve is BTC. Infinite supply digital assets, especially ones with zero utility, do not fit the bill.”
Will Bitcoin Become the Sole Reserve Asset?
Others, like Pierre Rochard, VP of research at BTC mining firm Riot Platforms, suggested that the Crypto Strategic Reserve will eventually become Bitcoin-only as “altcoins trend to zero relative to Bitcoin.”
Trump’s decision follows weeks of deliberation by the President’s newly formed Working Group on Digital Assets, led by executive director Bo Hines and crypto policy czar David Sacks. The working group has been tasked with shaping the administration’s approach to digital asset regulation, including stablecoins and potential CBDCs.
The next major milestone? The first White House Crypto Summit will be on March 7, where Trump will meet with industry leaders to discuss the future of crypto regulation. The event, chaired by Sacks and administered by Hines, is expected to set the tone for U.S. crypto policy leading into the election cycle.
With the crypto industry now more entangled in U.S. politics than ever, BTC’s dominance and Trump’s decision-making will remain a focal point for investors and policymakers alike.
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