Traders Spearheaded Massive Asset Sale Following Trumps Crypto Reserve Comments
Crypto traders have begun selling their assets, and as reflected in the market, a sharp downward reversal has been sustained. The new development comes after Donald Trumps announcement to integrate a Strategic Crypto Reserve in the long term. A notable price surge was recorded shortly after, with leading assets BTC, ETH, and XRP securing gains of 10%, 13%, and 34%, respectively.
Gains previously sustained have since been lost as traders rushed to initiate sales across various exchanges. Shortly after Trumps announcement, Bitcoin inflows on exchanges moved from 500-1000 to a staggering 6,739 BTC.
Within a 1-hour timeframe, ETH saw inflows soar to 300,000 ETH. Similarly, exchanges ushered in 2 billion XRP in inflows, with hourly inflows nearing 193 million.
Per CryptoQuants report, the recent drop in asset prices suggests that spot demand has carried through into contraction territory.
Market reacts to the inclusion of altcoins to the highly anticipated Strategic Crypto Reserve
Trumps remarks have been a major topic of conversation among key market players. The Presidents decision to include ETH, XRP, ADA, and SOL in the crypto reserve has warranted criticism from key figures.
Analyst Peter Brandt questioned Trumps credibility while raising concerns about including altcoins such as ETH and XRP in the crypto reserve. Brian Armstrong, the CEO of Coinbase, along with the Winklevoss twins, the founders of the Gemini exchange, have taken to X to express support for Bitcoin as the only asset fit to be included in the crypto reserve.
I have nothing against XRP, SOL, or ADA but I do not think they are suitable for a Strategic Reserve. Only one digital asset in the world right now meets the bar and that digital asset is bitcoin. Tyler Winklevoss tweeted.
While the altcoins above are listed on Gemini, Winklevoss maintains that for an asset to be considered Strategy Reserve material, it needs to be hard money that is a proven store of value like gold.
Text source: ZyCrypto
