Bitcoin (BTC-USD), Ethereum (ETH-USD), and major altcoins like XRP (XRP-USD), Solana (SOL-USD), and Cardano (ADA-USD) surged after Donald Trump confirmed plans for a U.S. strategic crypto reserve. But not everyone is convinced this rally has staying power. Analysts are already questioning how long these gains will last, pointing to regulatory hurdles and uncertainty over how the reserve would function.
Aurelie Barthere, principal research analyst at Nansen, cautioned that establishing a reserve would require a vote in Congress, which could drag out the process. “I think constituting a reserve by buying new tokens is a complex process that will need Congress’s vote, so it will take time. I would be a bit wary of the sustainability of today’s move,” Barthere explained.
Regulatory Uncertainty Could Slow Down Gains
While the market celebrated the announcement, some analysts expect short-term price swings. Nicolai Sondergaard, research analyst at Nansen, pointed out that ADA briefly surged to $1.17 before dropping back to $0.94. He added that “volatility in these tokens today” is expected, as traders speculate on whether the reserve will actually come to fruition.
Despite the uncertainty, some investors see Trump’s proposal as a major step toward crypto legitimacy. According to Citi, if the U.S. government moves forward with crypto purchases, it would validate digital assets in a way that could attract more institutional investors. The bank noted that the government currently holds $19 billion in seized Bitcoin but has no formal plan for acquiring new tokens.
White House Crypto Summit Could Bring More Clarity
The first White House Crypto Summit, set for March 7, could be the next key moment for the market. Cointelegraph reported that while the agenda remains unclear, stablecoin regulations and strategic reserve discussions will likely take center stage.
If Congress resists Trump’s crypto ambitions, the rally could fade. But if the reserve moves forward, the market could see further rallies. Consequently, it is important for investors to stay informed on how these developments impact crypto prices by tracking them on the TipRanks Cryptocurrency Center.
