Bitcoin stumbled on Monday after an initial surge fueled by former U.S. President Donald Trump’s weekend announcement of a national strategic reserve for cryptocurrencies.
The world’s largest cryptocurrency rose 2.4% from Friday’s levels to $86,292 but slid 8% from Sunday’s highs as optimism gave way to caution. Market participants awaited further details on the initiative, which Trump had hinted at in a Truth Social post.
Trump said his January executive order on digital assets would establish a stockpile including Bitcoin, Ether, XRP, Solana, and Cardano—the first time these names had been officially mentioned. Bitcoin and ether would form the reserve’s core, he noted, briefly pushing Bitcoin up 20% from its November lows.
However, disappointment over the lack of follow-through on crypto deregulation since Trump’s re-election has weighed on the market. Bitcoin has slid steadily since mid-January and fell over 17% in February—its worst month since June 2022.
Altcoins Sink on Uncertainty
Ether declined 4.3% from Friday to $2,127.10, down nearly 16% from Sunday’s levels. XRP tumbled 15% from Sunday to $2.48, though it remained up 25% from Friday.
Solana dropped 16% from Sunday to $148.89, though it held onto a 1.6% gain from Friday. Cardano suffered the most, plummeting 19% from Sunday to $0.8940 and falling 3% from Friday.
Mixed Reactions from Crypto Leaders
Anthony Pompliano, CEO of Professional Capital Management and a major crypto investor, criticized the plan in a letter to clients.
“Even though Solana is our second-largest crypto position, and various public equities I hold are heavily correlated to altcoins, I still think this decision on a wide-ranging crypto strategic reserve is an unforced error that will be regretted in the future,” he said.
He warned that the emerging policy looked like a “random smattering of speculative tools” benefiting crypto insiders at the expense of U.S. taxpayers.
Cameron and Tyler Winklevoss, co-founders of Gemini, also voiced skepticism on X (formerly Twitter), arguing that only Bitcoin met the standard for a true reserve asset.
Regulatory and Market Uncertainty Weighs
While Trump’s strategic reserve proposal briefly energized crypto markets, analysts remain cautious.
Tony Sycamore, an analyst at IG Markets, noted that if the U.S. government funds the reserve through taxpayer dollars, it could spark controversy. An alternative—using crypto seized from law enforcement actions—would be less bullish, as it represents asset redistribution rather than new buying pressure.
“Ironically, a currency designed to be decentralized and free from government interference is now reliant on U.S. policy for its fortunes,” said Kathleen Brooks, research director at XTB, adding that $100,000 remains an ‘obvious target’ for Bitcoin despite current volatility.
For now, the crypto market watches and waits as details on Trump’s reserve plan remain scarce.
