President Trump's social media post on crypto reserves has driven the market to soar, but also raised questions.
Key information:
- Bitcoin, Ethereum, Solana, Cardano and XRP have given back most of the Sunday gains brought by Trump-related positive news.
- Crypto-related stocks have also retreated from early highs.
- Some well-known analysts have expressed skepticism about the market's cheers for Trump's crypto policy stance.
President Trump posted a message about crypto reserves on social media on Sunday, triggering the biggest short squeeze in history, but the gains quickly retreated in early US stock trading on Monday.
BTC has fallen about 5% in the past hour, currently trading at $89,500. Although it has risen from around $85,000 before Trump's social media post on Sunday, it is still far below the high of $95,000.
Other cryptocurrencies mentioned by Trump - Ethereum, Solana, XRP and Cardano - are still up from Sunday, but have also given back most of their gains.
Arthur Hayes wrote in his Sunday commentary on Trump's crypto reserve post: "Nothing new. Just talk. Wait until they get Congressional approval to borrow or raise the price of gold. Without that, they have no money to buy BTC and shit coins."
Quinn Thompson, Chief Investment Officer of Lekker Capital, also did not express support for Trump's crypto reserve post, having accurately predicted the crypto market's bearish trend in recent weeks. On Sunday, Thompson said, "If you're cheering in the crypto space, I don't know what to tell you. Legalizing the two biggest lottery scams in the industries is not a good thing. You can blame it on government ignorance, misinformation or being bought, but that's not the right way to do it."
He added, "The Trump administration will provide the 10th 'sell the news' opportunity for crypto traders this year."
Crypto-related stocks have also retreated from early sharp gains, including Coinbase (COIN), Strategy (MSTR), Semler Scientific (SMLR) and Hut 8 (HUT).
