Author: Techub Hot News
Written by Babywhale, Techub News
Last night, US President Trump posted on his social media platform Truth Social to express his support for the cryptocurrency market.
Trump said in his first post, “After years of ‘corrupt attacks’ by the Biden administration, the U.S. cryptocurrency reserves will enhance the status of this critical industry, which is why my digital asset executive order directs the Presidential Working Group to advance a strategic reserve of cryptocurrencies including XRP, SOL, and ADA. I will ensure that the United States becomes the cryptocurrency capital of the world. We are making America great again!”
Later, Trump reiterated that like other valuable cryptocurrencies, Bitcoin and Ethereum will also become the core of reserves. I also love Bitcoin and Ethereum!
News is actually "old news"
After looking through the presidential executive order page on the White House official website, the author can almost confirm that the "news" that caused the short-term surge in assets mentioned by Trump is actually "old news."
From the relevant pages of the White House website, it can be seen that Trump has not signed a new executive order on cryptocurrency. The national cryptocurrency reserves mentioned on social media are actually still the digital asset reserves mentioned in the "Strengthening America's Leadership in Digital Financial Technology" signed in January. However, this time Trump clarified the assets that may be included in the reserve: Bitcoin, Ethereum, SOL, XRP, and ADA.
In other words, Trump may just be cheering up the recent sluggish cryptocurrency market, and the so-called "promotion" work is actually ongoing after the signing of the executive order, rather than any "new progress". It is worth noting that the signed executive order clearly mentioned that the way to establish a national cryptocurrency reserve is to retain cryptocurrencies legally seized by the federal government through law enforcement actions, and whether there are other ways, the current US president has not yet made it clear.
"Emotions drive prices" will lead to increased risks
In the current cryptocurrency market, whenever the keywords "Trump", "cryptocurrency" and "Bitcoin" appear at the same time, it always causes significant market fluctuations. A few days ago, Bitcoin fell below $80,000 due to the imminent implementation of Trump's tariff policy. At the time of writing this article, according to OKX market conditions, the price of Bitcoin has rebounded to above $92,000.
A piece of good news that is not tenable at first glance can cause the price of Bitcoin to rise by nearly 10% in the short term. It can only be said that the market is expecting too much good news. However, facing an erratic president like Trump and the absence of new good news that can influence the "battle situation" in the cryptocurrency market, the sustainability of this violent rebound caused by "old news" remains in doubt.
Of course, the power of emotions in the financial market should never be underestimated, but when the price of an asset must rely on the emotions stimulated by news rather than the asset itself having new pricing room to complete the rise, investors should pay more attention to risk control. The rise of Bitcoin in the past two years is also based on the stable rise in the price of risky assets represented by US stocks. If this foundation is no longer there, capital with a keen sense of smell may not choose to fight to the end.
