Trump Crypto Reserve Pick Altcoins Before BTC, ETH: Here’s Why?

Trump’s Crypto Reserve Announcement Raises Questions Over Market Influence

President Donald Trump’s recent announcement regarding the establishment of a U.S. strategic cryptocurrency reserve has sparked intense debate within financial circles. The former president confirmed on March 2, 2025, that Bitcoin (BTC) and Ethereum (ETH) would be included in this proposed reserve. However, what caught analysts off guard was the apparent prioritization of Solana (SOL), XRP, and Cardano (ADA) before these dominant digital assets were mentioned.

The sequence of events has led to speculation over whether this was a calculated move, an attempt at market manipulation, or merely an unusual coincidence. As markets responded with significant volatility, questions arose regarding potential insider knowledge and the broader implications for cryptocurrency regulation in the United States.

A Market Shaken by Trump’s Crypto Strategy

Donald Trump made the announcement via his social media platform, Truth Social, stating that the U.S. government was evaluating Bitcoin, Ethereum, Solana, XRP, and Cardano as part of its strategic reserve. The news triggered a sharp rally in cryptocurrency markets, with the total market capitalization surging by 8.8 percent to reach $3.09 trillion. Trading activity also saw an unprecedented increase, with 24-hour volume spiking by 159.21 percent to $190.24 billion.

Yet, the announcement’s staggered nature puzzled analysts. In the initial statement, only Solana, XRP, and Cardano were referenced, leading to an immediate surge in their market values:

• Solana (SOL) rose by 18.25 percent, reaching $169.81, with a market capitalization of $86.12 billion and a trading volume of $12.45 billion.
• XRP saw a 24.4 percent increase, trading at $2.79, with a market capitalization of $161.94 billion and a trading volume of $19.05 billion.
• Cardano (ADA) experienced the most dramatic growth, soaring by 59.74 percent to $1.06, with a market capitalization of $37.45 billion and a trading volume of $9.13 billion within 24 hours.

During this period, large-scale transactions, often referred to as “whale activity,” intensified. Notably:

• 200 million ADA were acquired within a single day.
• 270 million XRP were accumulated over 48 hours.
• 3 million SOL, worth approximately $510 million, were transferred from an unidentified wallet to Binance.

Suspicions of Insider Trading

Observers have raised concerns about potential insider trading linked to Trump’s announcement. According to financial analysts at The Kobeissi Letter, unusual trading patterns were detected in the hours leading up to the announcement. Just 24 hours before Bitcoin and Ethereum were officially mentioned, an unknown trader reportedly opened $200 million in leveraged long positions on both assets at 50x leverage.

Had Bitcoin fallen by as little as two percent, this position would have been liquidated. Instead, the announcement propelled Bitcoin to a new high of $94,000, adding approximately $300 billion to its market capitalization. The precise timing of these trades, combined with the sequencing of Trump’s statements, has led to speculation that select investors may have had advance knowledge of the government’s plans.

Why Were SOL, XRP, and ADA Prioritized?

While some view the sequence of Trump’s announcements as an anomaly, others argue that there may be strategic reasoning behind the prioritization of these three altcoins. Several theories have emerged:

1. Market Testing and Manipulation
   One possibility is that the administration aimed to test the market reaction to lesser-known assets before officially endorsing Bitcoin and Ethereum. By observing the volatility and price movements in response to the initial announcement, policymakers may have assessed how investors would respond to broader cryptocurrency adoption by the government.
2. Current Market Developments
   Each of the highlighted altcoins has been at the center of recent financial and regulatory developments:
• Solana has faced scrutiny following security breaches and concerns over its centralized validation process.
• XRP has been at the forefront of legal battles with the U.S. Securities and Exchange Commission (SEC), with ongoing speculation about its potential as a mainstream financial asset.
• Cardano recently gained attention due to its involvement in discussions around institutional adoption and ETF filings.
3. Bitcoin and Ethereum’s Established Status
   Unlike these altcoins, Bitcoin and Ethereum are widely accepted as the leading cryptocurrencies, with institutional investors and major financial entities already holding significant positions. As such, some analysts believe that the administration sought to create a surge in interest for altcoins before officially confirming Bitcoin and Ethereum’s inclusion in the reserve.

Challenges in Implementing a U.S. Crypto Reserve

Despite the market enthusiasm following Trump’s announcement, significant regulatory and legislative hurdles remain before such a reserve could be implemented. Financial analysts, including Ali Martinez, caution that an executive order alone would not be sufficient to establish the reserve. Congressional approval and regulatory framework discussions would be necessary before the initiative could take effect.

Should Congress reject the proposal, the market rally driven by this news could face a sharp reversal, leaving investors exposed to significant volatility. The uncertainty surrounding legislative approval makes the future of this reserve initiative highly unpredictable.

The Future of U.S. Crypto Policy

Trump’s engagement with cryptocurrency marks a shift in the political landscape, as digital assets continue to gain prominence in policy discussions. Whether this move represents a genuine attempt to position the United States as a leader in the digital economy or a calculated market play remains to be seen. However, the impact of this announcement has already set a precedent for how government actions can directly influence cryptocurrency markets.

The key question now is whether regulatory authorities will investigate the trading patterns that preceded Trump’s statements. If evidence of insider trading emerges, it could lead to stricter oversight of cryptocurrency markets and increased scrutiny of political figures engaging with digital assets.

Regardless of the motivations behind the announcement, the global financial community will be closely watching how the United States navigates the complex intersection of cryptocurrency and governmental policy in the coming months.

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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