Trump's Announcement: Bitcoin Dominance Drops Below 50%!

The recent announcement by President Donald Trump regarding the creation of a U.S. strategic reserve including several altcoins has rocked the market. While Bitcoin saw a 10% increase, its dominance in the crypto market briefly fell below the symbolic 50% mark, a first in a long time.

Trump diversifies the strategic reserve beyond Bitcoin

U.S. President Donald Trump surprised many by announcing that the United States would establish a crypto strategic reserve that would include not only Bitcoin but also XRP, Solana, and Cardano.

This declaration, made on Truth Social, immediately caused a shockwave in the crypto market. While Trump later clarified that Bitcoin and Ether would be at the core of the reserve, the inclusion of altcoins nevertheless had a considerable impact.

The dominance of Bitcoin, which accounted for 55.4% of the total crypto market capitalization, dropped sharply to 49.6% in the hours following the announcement. This drop can be explained by the spectacular surge of the altcoins mentioned by Trump: Cardano jumped by 60.3%, XRP by 34.7%, Solana by 25.5%, and Ether by 13.1% in 24 hours. Bitcoin only rose by 10%, reaching $94,220.

This decision surprised many experts, including Peter Schiff, a notorious critic of Bitcoin, who stated he understood the logic of a Bitcoin reserve but not one that included XRP.

Jeff Park, a strategist at Bitwise, called this decision an “enormous political miscalculation“, while Nick Neuman, CEO of Casa, stated that “the only crypto asset that makes logical sense within the strategic reserve of a country is Bitcoin.”

State resistances despite federal push

Despite the signing of an executive order by Donald Trump authorizing the establishment of a strategic reserve in Bitcoin and the appointment of David Sacks as “Crypto Tsar”, the initiative is facing obstacles at the state level. Of the 33 states that have proposed laws protecting the rights to self-custody, 28 have also submitted proposals to create a strategic reserve in Bitcoin.

However, four states have already rejected this proposal: Montana, North Dakota, Wyoming, and Pennsylvania. These refusals raise questions about the national viability of the project, despite its potential benefits in terms of independence from the federal government.

Currently, 24 states are still considering creating their own reserve, with Arizona and Oklahoma close to final adoption. Utah is awaiting only the second approval from the House to formalize its Bitcoin strategic reserve law, which could trigger a domino effect among other states.

The first White House Summit on Crypto will be held on March 7, bringing together industry leaders to discuss regulatory policies and oversight of stablecoins, chaired by David Sacks and the administration of Bo Hines. This summit could be crucial for the future of this controversial initiative, which is already profoundly transforming the crypto market.