XRP Dips as Crypto Market Reacts to Trump’s Bitcoin Reserve Plan
Volatility Hits XRP and Other Cryptos After Trump's Strategic Bitcoin Move
The cryptocurrency market experienced a sharp downturn on Monday as investors reacted to President Donald Trump’s executive order establishing a U.S. strategic bitcoin reserve. XRP, along with Bitcoin and Ethereum, saw price fluctuations as disappointment over the initiative’s scope rippled through the market.
XRP, the digital asset known for its utility in cross-border payments, fell by approximately 3% in early trading before stabilizing. Bitcoin, the world’s largest cryptocurrency, plunged as much as 6.5% to $80,650 before recovering some losses, while Ethereum also experienced volatility.
Trump’s executive order outlined that the U.S. bitcoin reserve would be funded by assets seized in criminal and civil forfeiture cases, with no immediate government purchases planned. The lack of an aggressive accumulation strategy left many investors underwhelmed, triggering a sell-off across the crypto market.
Despite the market’s initial reaction, some industry experts believe the move signals long-term bullish prospects for digital assets. Matt Hougan, Chief Investment Officer at Bitwise Asset Management, argued that investors are misinterpreting the situation. “The market is short-term disappointed that the government isn’t buying up 100,000 or 200,000 bitcoins right away,” Hougan told CNBC. However, he emphasized that the executive order reinforces Bitcoin’s status as a geopolitically significant asset, a move that could influence other governments to follow suit.
David Sacks, White House Crypto and AI Czar, echoed this sentiment on social media, suggesting that future bitcoin acquisitions could be made using budget-neutral strategies that wouldn’t burden taxpayers.
While the short-term market reaction has been negative, many analysts believe that Trump’s decision ultimately strengthens cryptocurrency’s position in the global financial system. As investors reassess the implications, XRP and other digital assets may find firmer ground in the coming weeks.
