XRP Gains Momentarily Amid Controversial US Crypto Reserve Announcement
Former President Donald Trump’s announcement of XRP’s inclusion in the US Crypto Strategic Reserve resulted in a brief price surge followed by a significant decline. Critics, including notable industry figures, have expressed concern over the move, highlighting XRP’s centralization and potential for regulatory challenges. As the market reacts to these developments, Bitcoin remains the preferred investment option amid uncertainties surrounding XRP.
The XRP community celebrated a significant victory when former President Donald Trump announced the inclusion of XRP in the proposed US Crypto Strategic Reserve. Following this declaration, XRP’s price experienced an impressive surge of nearly 38%, bringing it to over $3. However, as of the latest reports, the price has fallen over 22%, currently trading at $2.33, largely due to criticism regarding XRP’s inclusion and ongoing concerns stemming from Trump’s trade policies.
Trump’s announcement included plans for a Crypto Strategic Reserve that would also feature other cryptocurrencies such as Bitcoin, Ethereum, Solana, and Cardano. However, this inclusion of altcoins is facing substantial dissent from notable figures in the industry. Tyler Winklevoss, co-founder of Gemini, expressed skepticism, stating that XRP, ADA, and SOL might not be suitable, despite acknowledging their legitimate presence in the market. Coinbase’s CEO, Brian Armstrong, prefers a strategy focused solely on BTC or a market-cap weighted index of cryptocurrencies.
Criticism extends beyond industry giants as several Trump supporters have also voiced disapproval of the altcoin inclusion. Notable figures such as Ryan Selkis, David Bailey, Nic Carter, and Jason Calacanis have raised objections, emphasizing concerns regarding centralized assets. Naval Ravikant highlighted that centralized assets may exploit taxpayers as exit liquidity, which raises further questions about XRP’s role.
The future of XRP in the Crypto Strategic Reserve remains uncertain, especially if congressional approval is necessary for its implementation. David Sacks, Trump’s crypto advisor, indicated that the proposal might not incur any tax or spending programs. The upcoming White House Crypto Summit on March 7 is expected to provide additional insights, although analysts warn it could lead to a sell-the-news phenomenon.
In light of ongoing market pressure and the potential for regulatory challenges, XRP may risk dropping below $2, with estimates suggesting it could find a bottom around $1.65. Currently, Bitcoin emerges as the recommended cryptocurrency investment, expected to be integrated into the Strategic Reserve. There is a growing consensus that Bitcoin’s price may rise to $150,000 by 2025, and there are exciting developments surrounding BTC-themed altcoins, including a new meme coin named BTC Bull.
In summary, the inclusion of XRP in the proposed US Crypto Strategic Reserve has sparked significant praise and criticism alike. While XRP’s price initially surged, recent declines reflect ongoing skepticism from industry insiders and regulatory uncertainties. The outcome of the upcoming White House Crypto Summit may further clarify the situation but also poses risks for XRP. Investors are advised to keep an eye on Bitcoin for potential gains in the current market landscape.
Original Source: en.cryptonomist.ch
Post Comment