After the announcement by US President Donald Trump of a cryptographic strategic reserve, some industry figures questioned the possibility of his establishment. Market observers also expressed their concern about the longevity of the market -powered market.
Arthur Hayes Slams Crypto Reserve Advertisement
The founder of Bitmex, Arthur Hayes, expressed his skepticism as to the American Crypto Strategic Reserve recently announced. In a post X, he considered the declaration of the American president as “right words”, questioning the feasibility of the reserve without the approval of the American Congress.
According to Hayes, the announcement has not offered new information to the public, because the government will have to “obtain the approval of the congress to borrow money and / or reassess the price of gold. Without that, they have no money to buy #Bitcoin and #Shitcoins, “he said.
On Sunday, President Trump announced the creation of an “American cryptography reserve” to raise “critical industry after years of attacks by the Biden administration”. The news follows Trump’s executive decree of January 23, “strengthening American leadership in digital financial technology”.
The order has led the presidential working group on digital assets to study the viability of a potential crypto reserve while affirming the support of the new administration for blockchain technology and digital assets.
On his social media platform, Truth Social, the American president revealed that the strategic reserve would incorporate some of the best cryptocurrencies manufactured in the United States, notably Solana (Sol), Cardano (ADA) and XRP.
In a second post, President Trump said that Bitcoin (BTC) and Ethereum (ETH) “would be at the heart of the reserve”, expressing support for the two cryptocurrencies by market capitalization.
The AI of the White House and the Crypto-Tsar David Sacks shared the announcement, declaring that it was “consistent with its EO week during the week” and that “President Trump keeps his promise to make the United States the” cryptographic capital of the world “.
An American strategic reserve seized “not as bullish”
The CEO of Bybit, Ben Zhou, agreed with the commentary by Hayes, responding “exactly” to his X Post. Meanwhile, some market analysts have shared concerns about the financing of the American digital asset reserve.
Ali Martinez noted that the strategic reserve “would not become a reality of the day after” because the congress must “write, debate and adopt the legislation”. The analyst has added that sources of funding should be allocated and agencies such as Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the Ministry of the Treasury must establish a framework of compliance.
Martinez wondered what would happen if the legislation did not pass the Congress, wondering if the market pump would be “canceled” and would strengthen the recently seen coat.
IG market analyst Tony Sycamore said on X: “Although this announcement has considerably increased prices, it has also raised concerns.” According to the analyst, the financing of digital asset purchases “would likely come from taxpayers” because the government has a debt of 36 billions of dollars.
“Alternately, they could come from the substantial quantity of crypto that the government has confiscated over the years of criminal activities, including the 144,000 Bitcoin seized of Silk Road in 2013,” he also suggested.
However, Sycamore considers a strategic reserve made of cryptographic assets in American research “is not as optimistic as it simply represents a transfer between accounts rather than new purchases entering the market.”
However, some community members argued that Trump’s announcement contains “many” new here “” because the American president “essentially signals to all countries in the world that cryptographic arms race begins and that the most important assets are BTC and ETH”.
Bitcoin's performance in the one-week chart. Source: BTCUSDT on TradingView
Star image of Unsplash.com, tradingView.com graphic
