Altcoins surge 43% after Trump announcement
U.S. President Donald Trump's announcement to include Cardano's ADA (CRYPTO:ADA), Solana's SOL (CRYPTO:SOL), and Ripple's XRP (CRYPTO:XRP) in a proposed U.S. crypto strategic reserve has triggered a significant rally in these altcoins.
ADA rose by over 43%, while SOL and XRP increased by nearly 12% and over 15%, respectively, outperforming Bitcoin's 7.3% gain.
"The primary reason [behind the rally] is Trump including these three coins in the US reserves," stated Marcin Kazmierczak, COO of RedStone, attributed the surge to Trump's inclusion of these coins in the reserve.
Community support for ADA and XRP also played a crucial role in attracting more retail investors.
Juan Pellicer from IntoTheBlock noted that this marks a significant turning point for these altcoins, as it highlights U.S.-based crypto projects beyond just Bitcoin.
However, the rally may be short-lived due to regulatory hurdles and the need for congressional approval.
Aurelie Barthere, a principal research analyst at Nansen, warned that establishing a crypto reserve requires a complex process involving Congress, which could limit the sustainability of the current price surge.
The White House has scheduled a crypto summit to discuss further details on the reserve, which could clarify its structure and funding.
Critics have raised concerns about potential favoritism and ethical implications, given Trump's close ties to the crypto industry.
"While the crypto reserve announcement was a bullish catalyst for crypto prices in the short term, its long-term impact remains questionable. For one thing, no actual details have been disclosed yet," noted Nic Puckrin, financial analyst.
Despite these uncertainties, the initiative marks a pivotal moment for digital assets, reflecting a major step in the government's engagement with the crypto industry.
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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