Latest crypto News

Trump’s Crypto Promises Fall Short as Market Demands More

Trump’s Crypto Promises Fall Short as Market Demands More
  • PublishedMarch 11, 2025

Bitcoin and other cryptocurrencies are struggling despite former President Donald Trump making good on his pro-crypto promises. His administration recently announced the creation of a strategic bitcoin reserve, but the market reaction suggests that investors were expecting much more.

Bitcoin fell below $78,000 on Monday, marking a sharp decline from its all-time high of over $109,000 in January. Other cryptocurrencies, including Ethereum and XRP, also saw significant drops. The downturn reflects growing concerns about the US economy and uncertainty around Trump’s long-term crypto policies.

Trump’s election had initially fueled optimism within the crypto space. His vocal support for digital assets and promises to make the US the “crypto capital of the planet” pushed prices higher in late 2024. However, that momentum has faded as investors worry about macroeconomic conditions, trade policies, and the lack of aggressive bitcoin accumulation by the government.

Last week, Trump’s administration announced that the US now holds an estimated 200,000 bitcoins, worth over $17 billion, as part of its newly created bitcoin reserve. However, this reserve primarily consists of bitcoins seized through criminal proceedings rather than newly acquired assets. Many in the industry were hoping the government would take a more proactive approach by purchasing bitcoin directly.

David Sacks, Trump’s crypto policy chief, reassured investors that the government will not sell any bitcoin from the reserve. Instead, it will be treated as a long-term store of value, similar to gold in Fort Knox. While this move strengthens bitcoin’s legitimacy, it does little to immediately drive up demand or market confidence.

“The market reaction reflects a reset in expectations,” said Haider Rafique, chief marketing officer for crypto exchange OKX. “While the reserve is a milestone, it doesn’t translate to immediate buying pressure for bitcoin, which is what many investors were hoping for.”

Coinbase CEO Brian Armstrong believes the move is still significant. He suggested that other G20 nations may follow the US in recognizing bitcoin as a legitimate asset, similar to gold. However, in the short term, investors remain cautious.

Despite the current downturn, some industry leaders remain optimistic. JP Richardson, CEO of Exodus Wallet, said he is still bullish on crypto and sees this as a temporary correction. “Now we have a pro-bitcoin administration, a national bitcoin reserve—this is the best setup for a future bull market,” he said.

For now, the crypto industry is watching closely to see if Trump’s administration takes further steps, such as allocating federal funds to purchase more bitcoin. Investors are also awaiting clarity on potential regulatory changes that could impact the industry.

While Trump has delivered on his campaign promises, it’s clear that fulfilling past commitments is no longer enough. The market wants more action, and without further government support, crypto prices may continue to struggle in the near term.

Written By
Sudhanshu Shrivastav