The cryptocurrency market has just witnessed a significant change as Bitcoin Dominance - the market capitalization ratio of Bitcoin to the entire market - plummeted from 55.4% to below 50%. This is the first time in many months that Bitcoin has lost its dominant position, primarily due to a shocking statement from President Donald Trump.

Trump Announces Crypto Reserve Fund - A Boost for Altcoins

In a surprising announcement, U.S. President #DonaldTrump announced the establishment of the Crypto Strategic Reserve, a strategic reserve fund for digital assets of the United States. The controversial aspect is that besides Bitcoin, this fund's portfolio also includes altcoins like XRP (XRP), Solana (SOL), and Cardano (ADA).

This information immediately caused the altcoin market to explode. Just 10 hours after the announcement, the prices of these altcoins skyrocketed:

  • $ADA increased 61.2%

  • $XRP increased 24.2%

  • $SOL increased 18.6%

  • Ethereum (ETH) also increased nearly 10%

Meanwhile, Bitcoin saw a recovery of $10,000, rising from $85,000 to $95,000 in less than a day. However, compared to the rise of altcoins, Bitcoin has been overshadowed, and its market share has significantly decreased.

Bitcoin Fan Strongly Opposed

This event has sparked a fierce wave of controversy within the crypto community, especially among Bitcoin loyalists. They argue that a strategic reserve fund should only focus on Bitcoin rather than allocating to high-risk altcoins.

Experts Speak Out Against

  • Jeff Park, strategic leader of #Bitwise , called this a "serious political mistake" when Trump did not fully focus on Bitcoin. According to him, a national reserve fund should only be allocated to the most sustainable assets.

  • Nick Neuman, CEO of Bitcoin custody company Casa, asserts:

    "The only crypto asset that makes sense to include in the national strategic reserve is Bitcoin."

  • Pierre Rochard, Vice President of Research at Riot Platforms, believes that this fund will ultimately only contain Bitcoin, as altcoins will gradually lose value compared to BTC.

  • Peter Schiff, one of the most famous Bitcoin critics, is also surprised by this decision. Despite opposing BTC, he still acknowledges that it can be considered "digital gold." However, he completely does not understand why the reserve fund needs to include XRP:

    "I can understand the reason for reserving Bitcoin - even though I disagree with it. But why do we need XRP?"

  • Naval Ravikant, a prominent angel investor, believes that "the tax dollars of American citizens should not be used to provide liquidity for crypto projects that only masquerade as decentralized."

Crypto Strategic Reserve - A Bold Move or a Risky Gamble?

The plan to establish #CryptoStrategicReserve is not a random decision. According to sources from the White House, this plan has been carefully studied by the Digital Assets Task Force led by Bo Hines (head of the cryptocurrency council) and David Sacks (Crypto and AI Policy Advisor to President Trump).

Notably, Trump will hold a Crypto Conference at the White House on 07/03 to discuss policies for managing digital assets, overseeing stablecoins, and the future of crypto in the U.S. economy. This will be the first time in history the White House hosts an in-depth conference on crypto.

Potential Hidden Consequences

Incorporating altcoins into the strategic reserve could help Trump garner support from a broader crypto community, especially altcoin investors. However, this decision also comes with many significant risks:

  1. High volatility altcoins: Unlike Bitcoin, many altcoins have a high risk of losing value over time.

  2. Lack of unity in the crypto community: Trump's decision could cause a rift between Bitcoin supporters and altcoin investors.

  3. Political risk: If the Crypto Strategic Reserve fails or causes controversy, it could become a significant weak point in Trump's term.

Is Trump Shaping a New Crypto Market?

Although controversial, it cannot be denied that Trump's decision has created an altcoin frenzy and completely changed the landscape of the crypto market. With the upcoming Crypto Conference on 07/03, the crypto community is eagerly awaiting more specific policies from the Trump administration.

Will this be a revolutionary strategic move or just a risky gamble that causes Bitcoin to lose its position? The answer will become clearer in the near future!