The cryptocurrency market was briefly invigorated over the weekend following President Donald Trump’s announcement regarding the creation of a “crypto strategic reserve,” which would include tokens such as XRP, Solana (SOL), Cardano (ADA), Ethereum (ETH), and Bitcoin (BTC).
This news initially propelled crypto prices upward with XRP and ADA among the biggest gainers, generating excitement among investors eager to see the digital asset class gain further institutional legitimacy.
Winklevoss Advocates For Bitcoin Only
However, this rally proved to be short-lived, dissipating within less than 48 hours. Analysts attribute this to Trump’s ongoing tariff policies and a profit taking behaviour by investors, which have significantly impacted risk assets amid global economic uncertainties.
The combination of these factors has led to a widespread sell-off in the crypto markets, raising concerns about the sustainability of the initial gains.
Plus, industry leaders have voiced skepticism regarding the selection of cryptocurrencies for the strategic reserve. Notably, Tyler Winklevoss, co-founder of the crypto exchange Gemini, expressed his doubts about the suitability of XRP, SOL, and ADA for such a reserve.
In a recent post on X (formerly Twitter), he stated, “I have nothing against XRP, SOL, or ADA, but I do not think they are suitable for a Strategic Reserve. Only one digital asset in the world right now meets the bar, and that digital asset is Bitcoin.”
Winklevoss emphasized that for an asset to qualify as part of a strategic reserve, it should be “hard money” and a proven store of value, akin to gold, which is part of his reasoning on only including Bitcoin in a potential crypto strategic reserve.
Leaders Debate XRP, ADA, SOL’s Inclusion
Market expert Justin Bennett responded to Winklevoss’ comments, suggesting that the focus on a strategic reserve might be more about personal interests than sound economic strategy.
Bennett argued that Trump’s inclusion of various altcoins in the reserve proposal is unrealistic, stating, “There isn’t a snowball’s chance in hell of getting a reserve with those ‘assets’ through Congress.” Bennet criticized the president’s approach, claiming it undermines the credibility of the crypto space.
Adding to the discourse, Brian Armstrong, CEO of Coinbase, shared his perspective on the ideal assets for a strategic reserve. He noted, “Just Bitcoin would probably be the best option—simplest, and clear story as successor to gold.”
Armstrong also suggested that if a more diverse portfolio were desired, a market cap-weighted index of crypto assets could be a feasible alternative, though he maintained that Bitcoin remains the most straightforward choice.
At the time of writing, XRP is trading at $2.32, down 14% in the 24-hour time frame, with its next support at $2.20. As of now, XRP is 32% below its all-time high of $3,040, which was reached during the 2018 bull run.
Featured image from DALL-E, chart from TradingView.com
