President Donald Trump has announced the creation of the United States Cryptocurrency Strategic Reserve to fulfill one of his election campaign promises.
In the announcement, Trump named five cryptocurrencies– Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA)- that will be part of the reserve, as he said in a Truth Social post on March 2.
According to Trump, he has directed the Presidential Working Group to move forward with the initiative. Consequently, the move has ignited a significant capital inflow into the market, reversing the recent bearish sentiment that had engulfed the sector.
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Bitcoin and Ethereum insider trading alert
Interestingly, the renewed momentum has raised concerns about possible insider trading involving a whale who may have had prior knowledge of the decision.
Details of the trade indicate that on March 1, an unidentified crypto whale executed a 50x leveraged long position on Bitcoin and Ethereum, wagering a mere $4 million to control a $200 million position.
By March 2, the trader had deftly closed most of the positions, reaping $6.8 million in profits within a single day, raising questions about whether the outcome was sheer luck or if the trader was privy to inside information.
Notably, leveraged positions allow traders to amplify their buying power by borrowing funds from an exchange or broker, enabling them to control a position vastly larger than their initial capital.
Another massive whale activity was witnessed in XRP. Specifically, on-chain data shared by prominent cryptocurrency analyst Ali Martinez on March 2 indicated that large investors accumulated 270 million XRP.
Since taking office, Trump has partly prioritized cryptocurrency policies and regulations, including nominating pro-crypto leaders in agencies such as the Securities and Exchange Commission (SEC).
Interestingly, Trump and his family have also been involved in launching several meme cryptocurrencies, which have been linked to insider trading allegations.
Meanwhile, some players have expressed skepticism toward the plan. For instance, economist Peter Schiff argued that Bitcoin’s inclusion among other digital assets diminishes its uniqueness, stating, “There’s nothing special about Bitcoin.”
The new U.S. crypto policy has renewed interest in cryptocurrencies, with assets listed for the strategic reserve witnessing significant buying activity.
Crypto capital inflow
For instance, Bitcoin has breached the $90,000 resistance, trading at $93,483 as of press time. This value reflects an increase of almost 10% in the past 24 hours, though BTC remains in the red on the weekly chart with modest losses of about 1.7%.
Similarly, Ethereum is also witnessing an uptick in valuation, trading at $2,481, up over 12% on the daily chart.
Among the assets proposed for the reserve, ADA is the biggest gainer, surging 55% to trade at $0.99, while XRP has rallied almost 30%, trading at $2.75 as of press time.
Featured image via Shutterstock
