Following the declaration of a crypto strategic reserve by US President Donald Trump, some industry data has questioned the possibility of its establishment. Those who monitor the market have also expressed concern about the longevity of the recovery of the Trump-fuel market.
Arthur Hayes Slam Crypto Reserve Declaration
Bitmex founder Arthur Hayes Express Doubt about the recently announced American crypto strategic reserve. In an X post, he considered the US President’s statement as “just the word”, which questions the viability of the reserve without the approval of the US Congress.
According to Hayes, the announcement did not give any new information to the public, as the government would need to “get the approval of the Congress for borrowing money and reevaluate the price of gold. Without it they have no money to buy #bitcoin and #Shitcoins,” he said.
On Sunday, President Trump announced the establishment of “American Crypto Reserve” to elevate the “important industry” after years of corrupt attacks by the Biden administration. The news follows Trump’s 23 January executive order, “strengthening the American leadership in digital financial technology.”
The order directed the President’s Working Group on digital assets to study the feasibility of a possible crypto reserve, confirming the support of new administration for blockchain technology and digital assets.
His social media platform, Truth on social, the US President revealed that the strategic reserve will include some top cryptocurrency Built in the United StatesSolana (Sol), Cardano (ADA), and including XRP.
In another post, President Trump confirmed that Bitcoin (BTC) and Ethereum (Eth) “would be in the heart of the reserve,” expressing their support for the top two cryptocurrency by market capitalization.
White House AI and Crypto Caesar David Sachs shared the announcement, saying that it was in line with “an EO 14178 of its week” and “President Trump is promising America to make America ‘the world’s crypto capital’.
A American strategic reserve seized ‘not as fast’
CEO of Bybit, Ben Zhou, Agreed With Hayes’s comment, responding to “absolutely” for his X post. Meanwhile, some market analysts shared concerns about the financing of the US Digital Asset Reserve.
Ali Martinez noted The Congress should pass, debate and pass the law as strategic reserve “will not become a reality overnight”. The analyst stated that funding sources would need to be allocated, and the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Treasury Department would have to set up a compliant structure.
Martinez questioned that if the law does not pass the Congress, then wondering whether the market pump “will be undone” and what would happen if you reinforce the recently seen spirit.
IG Market Analyst Tony Cyamor Stated On X, “While this announcement has increased prices significantly, it has also raised concerns.” According to the analyst, digital asset purchases are likely to bring money from taxpayers, “because the government borres $ 36 trillion in debt.
He said, “Alternatively, they can be obtained with sufficient amounts of crypto, the government has seized from criminal activities for years, including 144,000 bitcoins seized from Silk Road in 2013,” he also suggested.
However, Sycamore considers a strategic reserve made of US-Siye crypto assets, “It is not as fast anywhere as it represents a transfer between accounts rather than new to enter the market only.”
However, some community members Argued Trump’s announcement includes “a lot of” new here, because the US President is essentially indicating for every country in the world that a crypto weapons are starting to race and the most important assets are BTC and ETH. ,
Bitcoin's performance in the one-week chart. Source: BTCUSDT on TradingView
Specially displayed image from Unsplash.com, chart from traoodingview.com
