“Ask for 1,000 to settle at 500.” This classic property negotiation strategy involves starting with extreme demand, creating leverage over the counterparty to ultimately seal the agreement at a lower price that was your intended goal all the time.
US President Donald Trump, formerly a real estate agent, apparently uses the same strategy to secure the promised strategic cryptor sanctuary, which consists of Bitcoin (BTC) and probably Ether (ETH).
On Sunday, Trump said of truth social that he expects payments-focused XRP, Solana’s Sun and Cardanos Ada-tokens are part of the strategic digital assets reserves with Bitcoin and Ether in the core. The original market reaction was exuberant and lifted the total market capital by 11% or $ 300 billion to $ 3.09 trillion.
However, the rally ran out of steam on Monday as market participants began criticizing Trump for being incorrectly informed or ignorant of supporting the inclusion of XRP and ADA. As expected, the original excitement paved the way for the recognition that Trump still needs to secure congressional approval, and the plans to invest in Altcoins contradict Dog’s efforts to reduce costs and reduce debt.
“Big problem here is optics. When you include ALTCOINS, whose use of use is too beginning to be considered” national strategic, “you risk the assumption of interior trading, even if it was patent false. This is politically negative, even among a subgroup of crypto enthusiasts,” Jeff Park, head of Alpha strategies at Bitvis Investment Management, said of X.
“Trump is understanding in Crypto Land what Bitcoin – and only Bitcoin – represents,” Park added.
According to some observers, however, it seems that the mention of Altcoin serves as a form of extreme demand intended to overwhelm the opposition (Congress) and create leverage in discussions about the strategic cryptor reserve.
“The message is probably just Trump’s usual negotiating tactics. IE calls for a strategic reserve with XRP, Sun and ADA so he can get one for BTC (and maybe ETH), “Ilan Solot, Senior Global Market Strategist at Marex Solutions, said in a client note entitled” Curb your enthusiasm. “
Solot added that the United States would keep the arrested digital asset warehouse, but the likelihood of the government buying fresh BTC is less than 50%. Meanwhile, the odds of ETH purchases are small but real, while for altcoins they are small.
Critics argue against XRP and ADA by pointing out that these cryptocurrencies lack the presence of the real world and the established utility of Ethereum and Solana that actively support financial activities through stableecoins.
In addition, CME has not yet announced plans to list XRP and ADA Futures, which is probably why many are against the addition of these coins to the national reserve. Note that SEC had approved ETFs that invested in the CME-listed BTC and ETER ETFs before approving ETFs investing in the CME-LIGNED BTC and ETH futures, and trusting the Exchange surveillance system to take care of the pricing.
Jason Atkins, Chief Commercial Officer at Crypto-Making Firm Auros, said market reactions to Trump messages unfold in three stages, with the first characterized by rumors, the second by a hyperbolic message and the last of hard negotiations.
“The second phase is triggered by an official message from Trump or his team, which tends to mirror the speculative nature of the first. His negotiation style -characterized by hyperbole, great promises and demands beyond what is immediately feasible -often results Coindesk in a late Monday -e email.
Atkins added that the possibility of another leverage leaching remains high when investors reassess the reality of bureaucracy, negotiations and the uncertainty of the actual flow of funds.
“Given that the congressional approval remains an obstacle and the time of real fund movements is uncertain, dealers and investors need to assess whether this is a structural shift or just another cycle of speculation -driven volatility,” noted Atkins.
