Author: Techub Hot News
Writer: Babywhale, Techub News
Last night, former US President Trump posted on his social media platform Truth Social to express his support for the cryptocurrency market.
In his first post, Trump stated, "After years of the Biden administration's 'corrupt attacks', the US cryptocurrency reserve will elevate the status of this critical industry, which is why my digital asset executive order directs the presidential working group to advance a cryptocurrency strategic reserve including XRP, SOL and ADA. I will ensure that the US becomes the world capital of cryptocurrency. We are making America great again!"
Subsequently, Trump reiterated that, like other valuable cryptocurrencies, Bitcoin and Ethereum will also become the core of the reserve, and he also loves Bitcoin and Ethereum!
The news is actually 'old news'
After reviewing the White House website's presidential executive order page, the author can almost confirm that the 'news' that caused the short-term surge in the assets mentioned by Trump is actually 'old news'.
From the relevant pages on the White House website, it can be seen that Trump has not signed a new executive order on cryptocurrencies, and the national cryptocurrency reserve he mentioned on social media is still the one mentioned in the January-signed 'Ensuring the United States Remains a Global Leader in Digital Assets'. The only difference is that this time Trump specifically named the assets that the reserve may include: Bitcoin, Ethereum, SOL, XRP, ADA.
In other words, Trump may just be trying to boost the recently depressed cryptocurrency market, and the 'advancement' he mentioned is actually the ongoing work since the signing of the executive order, not a 'new progress'. It is worth noting that the signed executive order clearly stated that the way to establish the national cryptocurrency reserve is to retain the cryptocurrencies legally seized by the federal government through law enforcement actions, but whether there are other ways, the current US president has not yet specified.
'Sentiment Driving Prices' Will Lead to Increased Risks
In the current cryptocurrency market, whenever keywords like 'Trump', 'cryptocurrency', 'Bitcoin' appear together, it will often trigger significant market volatility. Just a few days ago, Bitcoin once fell below $80,000 due to reasons such as the imminent implementation of Trump's tariff policy, and at the time of writing this article, according to OKX's market data, the Bitcoin price has rebounded to above $92,000.
A piece of good news that doesn't hold up under scrutiny can cause Bitcoin's price to surge nearly 10% in the short term, which just shows how much the market is anticipating good news. But faced with a president as unpredictable as Trump, and the lack of new catalysts that can 'turn the tide' in the cryptocurrency market, the sustainability of this violent rebound triggered by 'old news' is still questionable.
Of course, the power of sentiment in the financial market can never be underestimated, but when the price of an asset must rely on the sentiment triggered by news rather than the asset itself having new upside pricing space to complete the rally, investors should pay more attention to risk control. Bitcoin's rise over the past two years has also been built on the basis of risk assets represented by the US stock market steadily rising, if this foundation is no longer there, the capital with keen senses may not choose to fight.
