21Shares Strategy Director: The process of U.S. strategic crypto reserves will take longer than the market expects, and the market reaction is overly optimistic
In a message from ChainCatcher, Eliezer Ndinga, the Strategy Director of 21Shares, stated that the recent rise in cryptocurrency prices (especially altcoins) is mainly driven by discussions about US strategic crypto reserves. However, he believes that market reactions may be overly optimistic.
He pointed out that establishing strategic reserves requires congressional approval and involves many complex issues: asset allocation ratios, holding periods, proportions held relative to total supply, market integrity measures and asset protection mechanisms etc.
Ndinga thinks this process will take longer than the market expects. Trump might use his social media influence to set preliminary conditions for Congress but proposals could face multiple revisions and delays which would eventually cool down current market enthusiasm.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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