Why analysts are divided over Trump’s crypto reserve announcement

President Donald Trump on Sunday announced on Truth Social that he had instructed his Crypto Working Group to “move forward” with the establishment of a Crypto Strategic Reserve, Which will include bitcoin, atherium, XRP, Solan and Cardano,

The announcement triggered a major rally in the Cryptocurrency market.

Bitcoin initially stabilized from about $ 85,000 to about $ 95,000 to about $ 93,000.

Cardano and XRP also saw enough benefits, rising About 40% and 16% respectively,

Bitcoin at $ 500K?

The head of the Standard Chartered of Digital Asset Research, Geoff Kandric mentioned sharp fluctuations and confirmed his long-term rapid attitude on bitcoin.

He maintained his $ 500,000 bitcoin price target, underlining a time -line, where BTC could reach $ 200,000 by the end of 2025, $ 300,000 in 2026, $ 300,000 in 2027 and $ 500,000 by 2028.

Kendrick attributed this forecast to a defense against a global investment property and traditional financial risks for the growing role of bitcoin.

Kendrick also suggested that Trump’s proposal may motivate American states to install its own bitcoin reserves, possibly a federal government’s estimated 200,000 BTC holdings.

MPs in Montana, North Dakota, South Dakota and Vyoming have recently rejected proposals to set up state-level crypto reserves in recent weeks, indicating to concern and risk concerns. According to bitcoin laws, 24 states have introduced similar bills.

Not everyone is confident about Trump’s Crypto Reserve

However, investment bank TD Cowen expressed doubts about the plan, called it “uncontrolled” and lack of clarity on funding.

The bank’s Washington Research Group, led by Jet Sebberg, said that Trump’s original post did not include bitcoin or atherium, which raised concerns about its consistency.

Additionally, there was no indication of how the government would provide finance to the acquisition of tokens.

TD Cowen also questioned the importance of calling it “reserve” instead of “stockpile”, suggesting that it is not clear whether the government intends to buy crypto property or simply captures the seized token.

Singapore -based QCP Capital suggested that Trump’s declaration was politically timely, aimed at combating negative market trends and stabilizing their approval ratings.

Coinbase CEO Brian Armstrong also criticized the plan, arguing that only bitcoins should be included.

Joe Lonsdel, a billionaire co-founder of AI-centric defense contractor Palauntir and a vocal Trump supporter criticized the proposal, stating that it is “wrong to give me to me for Crypto Bro plans” and funding a Crypto Reserve is not a proper, royal role of the government. “

Jeff Park, a strategist of the Crypto Index Fund Manager Bitwaiz – where the Venture firm of Sachs was an early investor – said there was “a huge political miscaliation by Trump” with a coin beyond bitcoin.

Trump’s announcement time comes just before the first Crypto summit of the White House, which is scheduled for Friday and hosted by Crypto Caesar David Sachs.

Trump is expected to comment in the incident, which will bring leaders and investors of the leading industry together.

The TD Coven believes that the summit will provide insight into the administration’s approach to Stabecrim and Crypto market rules, but emphasized that a bipartished structure is important for long -term legal stability in the area.

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