【MACRO Alert】Trump's cryptocurrency reserve plan sparked market controversy ! Bitcoin price fell bel

Bitcoin prices quickly fell back after hitting a high on Monday, falling below $90,000 again due to negative investor sentiment towards the industry and U.S. President Trump's tariff threats. According to data, Bitcoin is currently priced at around $86,000, down more than 8% in 24 hours. In addition to Bitcoin, Ethereum fell more than 14% in 24 hours, Ripple fell more than 17%, and Solana fell more than 18%. The overall performance of the crypto market is very weak. CoinShares reported that the outflow of funds from cryptocurrency exchange-traded products last week was as high as $2.9 billion. This is the third consecutive week of outflows after 19 consecutive weeks of inflows.

Meanwhile, the gains in cryptocurrency-related stocks were short-lived . Last weekend, Trump announced the creation of a strategic cryptocurrency reserve, including Bitcoin, Ethereum, Ripple, Solana, and Cardano's ADA. The news briefly pushed Bitcoin prices back to $95,000, and other cryptocurrencies also saw significant gains. Microstrategy shares rose 14% at the open on Monday, but fell more than 1.8% at the close. Crypto exchange Coinbase fell 4.6% on Monday. However, the boost did not last, and the market quickly gave up its gains.

Aurelie Barthere, chief research analyst at Nansen, said that establishing a U.S. cryptocurrency reserve would take time and require a vote by Congress. Nicolai Sondergaard, a research analyst at the same company, warned that the price of the tokens selected as cryptocurrency reserves would fluctuate. Industry experts are skeptical of the plan, believing that Trump's remarks will not continue to drive up token prices and that the market has already digested his plan.

Although the market was initially excited about Trump's cryptocurrency reserve plan, the plan has also been strongly criticized within the industry. Nic Carter, general partner of Castle Island Ventures, believes that the government should not operate a fake crypto hedge fund and should not pick winners and losers. Harrison Seletsky, director of business development at digital identity platform SPACE ID, pointed out that the total locked value and stability of XRP and ADA are insignificant compared to other ecosystem participants, which weakens the overall concept of crypto industry pillars such as Bitcoin, Ethereum, and Solana.

Alexander Blume, CEO of Two Prime Digital Assets, said that XRP, ADA and SOL are "basically technology companies that own cryptocurrencies" and are highly controlled and highly concentrated in ownership, while Bitcoin is a decentralized product with no single owner or group of controllers, more akin to gold. Chris Chung, founder of Solana trading platform Titan, said the question now is whether we will see some actual details about crypto legislation in the foreseeable future. Investment bank TD Cowen called the statement uncoordinated, and Danny Scott, CEO of CoinCorner, expressed the same view, believing that the statement may be purely a political strategy to maintain support for Trump among people in the cryptocurrency circle.

Many industry leaders believe that real strategic reserves should focus only on Bitcoin. Hunter Horsely, CEO of Bitwise, said Bitcoin is the undisputed means of storing value in the digital age. Scott, whose company operates a Bitcoin exchange, believes that it is "meaningless" to buy anything other than Bitcoin for crypto reserves because Bitcoin is decentralized and no company, country, entity or individual controls it, which makes a lot of sense for countries to build strategic reserves.

The volatility of Bitcoin prices reflects the market's uncertainty about the Trump administration's cryptocurrency policy and the disagreements within the industry. Although Trump's cryptocurrency reserve plan boosted the market for a time, the market quickly gave up the gains, showing investors' skepticism about the plan. In the future, the trend of the cryptocurrency market will depend on the macroeconomic environment, regulatory policies, and the overall market sentiment towards risky assets. Investors should remain cautious and pay close attention to market dynamics and policy changes.