Just a few days ago, *Mashable* released an article examining the abrupt decline in Bitcoin and other cryptocurrencies. Among the four primary reasons mentioned, three were associated with actions taken by Donald Trump during his time in office.
This downturn was unexpected, particularly in light of Trump’s earlier assurances to support the crypto sector following endorsements from many of its advocates during his election campaign.
Nonetheless, over the weekend, as Bitcoin experienced a nearly 20% loss in value, Trump made an unexpected announcement that briefly propelled cryptocurrency prices upward.
### Trump Reveals U.S. Crypto Reserve
On his social media platform, *Truth Social*, Trump announced that the U.S. government would create a **”Crypto Strategic Reserve”** and start acquiring various cryptocurrencies. He specifically named five: **Bitcoin, Ethereum, XRP, Solana, and Cardano**.
> “A U.S. Crypto Reserve will elevate this crucial industry after years of corrupt assaults by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to advance a Crypto Strategic Reserve that includes XRP, SOL, and ADA,” [Trump posted](https://truthsocial.com/@realDonaldTrump/posts/114093526901586124). “I will ensure the U.S. becomes the Crypto Capital of the World. We are MAKING AMERICA GREAT AGAIN!”
In the wake of the announcement, cryptocurrency prices surged. Bitcoin, for instance, rose from approximately **$85,000 to $95,000**, temporarily reversing the market’s downward trajectory.
### Critics Challenge the Decision
Despite the temporary increase, critics swiftly voiced their concerns. Many wondered why an administration focused on **cost-cutting**—headed by Elon Musk—would utilize **taxpayer funds** to purchase cryptocurrencies.
David Sacks, the White House AI and crypto advisor, downplayed the criticism, stating that no tax or spending proposal had been revealed yet.
> “Nobody announced a tax or a spending program,” [Sacks replied](https://x.com/DavidSacks/status/1896482883424211188). “Perhaps you should wait to learn what’s actually being suggested.”
However, Sacks did not elaborate on what the administration exactly planned to do.
### The Contentious Crypto Selections
While Bitcoin and Ethereum are broadly recognized, the other three cryptocurrencies Trump referenced—XRP, Solana, and Cardano—target more specialized audiences.
Solana, for example, is primarily known as the platform for various **meme coins**, including Trump’s own [controversial meme coin](https://mashable.com/article/trump-melania-coin-crypto). Additionally, some crypto supporters criticized the inclusion of XRP and Cardano, voicing worries about **centralization** and the absence of **stablecoin issuers**.
### David Sacks’ Crypto Connections Raise Concerns
Another significant area of scrutiny was Sacks’ association with the five cryptocurrencies highlighted by Trump.
Sacks was an **early backer of Solana** and had previously held a considerable amount of its tokens. While he asserts that he has sold off his personal crypto assets, his venture capital firm, **Craft Ventures**, remains heavily involved in the crypto industry.
Craft Ventures has invested in **Bitwise**, a prominent crypto asset management firm. Notably, Bitwise’s **top five cryptocurrency holdings** align precisely with those Trump mentioned: **Bitcoin, Ethereum, XRP, Solana, and Cardano**.
### A Brief Crypto Boom
While Trump’s announcement initially propelled crypto prices, the effects were fleeting. As of now, most cryptocurrencies have **returned to their earlier levels**, negating the gains induced by his announcement.
The long-term consequences of Trump’s **Crypto Strategic Reserve** initiative remain unclear, but skepticism continues to rise—both regarding the policy itself and the potential conflicts of interest involving those connected.