- Bitcoin dominance fell below 50% after Trump announced a “Crypto Strategic Reserve” that includes several altcoins.
- Major altcoins like Cardano, XRP, and Solana saw significant price increases—ranging from 25% to 60%—outpacing Bitcoin’s 10% gain.
- Many Bitcoin maximalists criticized the inclusion of altcoins in the reserve, arguing that only Bitcoin makes sense as a strategic reserve asset.
Bitcoin’s market dominance slipped below the 50% threshold following former U.S. President Donald Trump‘s announcement of a "Crypto Strategic Reserve" that would include several major altcoins alongside Bitcoin. The cryptocurrency’s dominance declined from 55.4% to 49.6% as investors shifted capital toward altcoins explicitly mentioned in Trump’s statements.
While Trump later clarified on Truth Social that Bitcoin (BTC) and Ethereum (ETH) would be "at the heart of the reserve," the initial inclusion of altcoins triggered substantial market movements. Cardano (ADA) and XRP surged 60.3% and 34.7% respectively over a 24-hour period, while Solana (SOL) and Ether posted gains of 25.5% and 13.1%. Bitcoin’s price increased by a comparatively modest 10% to $94,220.
The decision to establish a multi-cryptocurrency reserve rather than a Bitcoin-exclusive one surprised many industry observers, including longtime Bitcoin critic Peter Schiff, who questioned the rationale behind including altcoins.
"I get the rationale for a Bitcoin reserve. I don’t agree with it, but I get it. We have a Gold reserve. Bitcoin is digital gold, which is better than analog gold. So let’s create a Bitcoin reserve too."
Schiff further expressed confusion about specific token selections, stating: "But what’s the rationale for an XRP reserve? Why the hell would we need that?"
Bitcoin advocates were similarly critical of the multi-crypto approach. Jeff Park, Bitwise’s head of alpha strategies, characterized the decision as a "huge political miscalculation by Trump in underestimating just how crucial it was for the Strategic Reserve to focus solely on Bitcoin."
Nick Neuman, CEO of Bitcoin custody solution Casa, argued: "The only crypto asset that makes any logical sense whatsoever as part of a country’s strategic reserve is Bitcoin. Infinite supply digital assets — especially ones with zero utility — do not fit the bill."
Taking a longer-term perspective, Pierre Rochard, vice president of research at Bitcoin mining firm Riot Platforms, predicted that the Crypto Strategic Reserve would "naturally become Bitcoin-only" as altcoins trend toward zero relative to Bitcoin.
The Crypto Strategic Reserve initiative follows weeks of evaluation from the President’s Working Group on Digital Assets, led by executive director Bo Hines and David Sacks, the White House’s AI and crypto czar. Trump has scheduled the first White House Crypto Summit for March 7, where industry leaders will gather to discuss regulatory policies and stablecoin oversight under Sacks’ chairmanship and Hines’ administration.
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Previous Articles:
- Trump Names Bitcoin, Ether, XRP, Solana and Cardano as Potential US Strategic Crypto Reserve Coins
- Polygon CEO: Tokenizing Real Estate Could Eliminate Illiquidity Discount, Reduce Transaction Costs
- Trump Announces U.S. “Crypto Reserve” to Include Bitcoin, Ethereum, XRP, Solana, and Cardano
- Trump’s Crypto Reserve Plan Sends Bitcoin, XRP, Solana and Cardano Prices Soaring
- Trump Names XRP, Solana, and Cardano for Strategic Crypto Reserve, Omits Bitcoin and Ethereum
