On March 2, US President Donald Trump announced a US crypto reserve that he claimed would “elevate this critical industry after years of corrupt attacks by the Biden administration.”
He added that it would “obviously” contain Bitcoin and Ethereum but also mentioned XRP, SOL, and ADA, sending those tokens skyrocketing in the hours that followed.
Crypto industry executives and analysts were quick to react but not all were in favor of altcoins being included.
Why The Shitcoins?
Coinbase CEO Brian Armstrong said he was “excited to learn more” and is still forming an opinion on asset allocation.
“Just Bitcoin would probably be the best option – simplest and clear story as successor to gold. If folks wanted more variety, you could do a market cap-weighted index of crypto assets to keep it unbiased. But probably option #1 is easiest.”
Excited to learn more. Still forming an opinion on asset allocation, but my current thinking is:
1. Just Bitcoin would probably be the best option – simplest, and clear story as successor to gold
2. If folks wanted more variety, you could do a market cap weighted index of crypto… https://t.co/jv8Gcn8N2S— Brian Armstrong (@brian_armstrong) March 3, 2025
Real Vision founder and CEO Raoul Pal agreed, stating that “It is possible that they just use an index of US-based crypto by market cap plus BTC and ETH to be neutral and let the market decide.”
Bitcoin maximalist Samson Mow said it was a sad day for America because Trump mentioned altcoins.
“Bitcoin might be up, but it’s a sad day for America if they actually shitcoin at a nation-state level. I can’t really say I’m surprised though, with Trump having launched a meme coin.”
Meanwhile, BitMEX founder Arthur Hayes was unimpressed, claiming there was nothing new here and it was “just words.” “Let me know when they get congressional approval to borrow money and or revalue the gold price higher. Without that, they have no money to buy Bitcoin and shitcoins,” he added.
Trader and analyst “DonAlt” opined that “the risk that Trump f**ks this up and it gets shot down is quite present.”
He added that the inclusion of “shitcoins in his proposed strategic reserve opens up the possibility for the altcoins he mentioned to gain at least 3 to 4 times,” but they could tank 25% if it fails.
I think the risk that Trump fucks this up and it gets shot down is quite present
But him including shitcoins in his proposed strategic reserve opens up the possibility for the alts he mentioned to at least 3-4x
If it fails, down 25%+ immediately if it goes through 3-4x
Gud odds— DonAlt (@CryptoDonAlt) March 2, 2025
Bitcoin Dominance Dumps
Those altcoins mentioned have already skyrocketed by double digits over the past few hours, and this has resulted in a decline in Bitcoin dominance.
BTC dominance fell to just over 60% on Sunday following the massive market pump that primarily benefitted XRP, SOL, and ADA. It has now fallen from a 4-year high of over 64% earlier this month, according to Tradingview.
Either way, Trump’s crypto reserve would still be dependent on Congressional voting, so it is a long way from reality.
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