$SOL Up 26% As Trump Announces Strategic U.S. Crypto Reserve

President Trump has provided markets with some much-needed relief, formally announcing that his administration will be moving forward on a strategic crypto reserve.

While thought leaders across the industry have celebrated the move, questions linger around the credibility of assets held in the reserve.

Despite markets roaring back to life following Trump’s statement, suspicious positions taken leading to the announcement hint at ongoing insider trading within the government’s elite.

President Trump Confirms Crypto Reserve

On March 2nd, President Donald Trump supercharged crypto markets by confirming that the Presidential Working Group would move forward on its plan to establish a strategic U.S. Crypto Reserve.

President Trump’s declaration breathed new life into markets, with $XRP, $SOL, and $ADA initially climbing 24%, 26%, and 59%, respectively, following the announcement. 

Fickle as ever, the crypto community flipped from hopelessly bearish to unabashedly bullish overnight. After repeated calls that this cycle is finished, traders are now saying that the creation of a strategic crypto reserve is a confirmation of the fabled supercycle.

Despite the initial excitement, the approaching U.S. Crypto Reserve asks more questions than it answers.

Trump’s executive order on crypto stated the Administration would explore the validity of creating a digital asset stockpile, not a strategic reserve. Currently, it is unclear whether the newly-announced Reserve is separate to the aforementioned stockpile, or if the President is using the two names interchangeably.

The executive order suggests said stockpile is composed of previously seized assets, meaning that the United States Government may not be committing to acquiring cryptocurrency through existing markets.

Unfortunately for crypto bulls, the creation of a U.S. Crypto Reserve could still be a long time coming. Trump still needs to win the approval of the U.S. Congress and other key Federal entities.

Industry Torn on Included Assets

While markets are undoubtedly excited about the prospect of a U.S. Crypto Reserve, industry leaders are questioning the credibility and inclusion of Trump’s chosen assets.

Coinbase founder Brian Armstrong expressed excitement towards the announcement, but floating the idea that “just Bitcoin would probably be the best option”. 

Meanwhile, others are speculating that Trump’s inclusion of altcoins like $SOL, $XRP, $ETH, and $ADA are part of a negotiation strategy. 

Social media commentators theorize that Trump’s initial request is so outlandish that, upon its rejection, Trump will be able to request a Bitcoin-only Reserve as a concession.

Outside the crypto echo chamber, the general public is largely against the formation of a U.S. crypto reserve. Against a backdrop of controversial government spending revelations, critics argue that American taxpayer funds shouldn’t be spent on acquiring cryptocurrency. 

Insider Trading Allegations Debunked

The establishment of a strategic U.S. Crypto Reserve is an undeniable boon for markets, sending asset prices soaring and adding over $350B to the crypto industry overnight.

However, misleading onchain data has led market participants to assume Government officials may have abused their position to net significant profits. Despite widespread allegations, these claims have since been debunked.

Leading up to the announcement, an unknown entity opened a 50x-leveraged long position on Bitcoin and Ethereum with a position size of over $195M, suggesting extreme confidence in an upcoming catalyst.

The trader has since closed the trade, netting over $5M in profits after opening the position less than 24 hours before President Trump’s announcement. The crypto community has flagged the trade as highly suspicious, fearing that insiders within the Presidential Working Group are abusing their position for personal gain.

However, these allegations have since been unfounded. According to Coinbase Director Conor Grogan, the wallet associated with the trade is a serial phishing scammer who closed the trade minutes before Trump shared that $BTC and $ETH would also be included in the Reserve. 

$5M profit may seem large at face value, but the fact that the trader was willing to risk a 50x long on $40M of margin only to sell before the announcement indicates the trader did not have insider knowledge.

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