Trump's Call for Holding Bitcoin

In the early hours, Trump tweeted: "Never sell your Bitcoin," and announced plans to establish a Bitcoin strategic reserve. He stated, "From today onwards, the U.S. will follow a rule that every Bitcoin holder knows well—never sell your Bitcoin." However, the market has seen a continuous downturn since then, with Bitcoin prices oscillating between $91,000 and $86,000, influenced by the erratic nature of the news.

The entire crypto summit, including Trump's participation, did not mention any new developments or policies. Trump's "call to action" allows him to fulfill his campaign promises without additional expenditure and to rally support from the crypto community. This "holding-style bullish" signal can alleviate selling pressure, but without new funds entering the market, it cannot drive a trend of upward movement.

Why Does Bullish News Sometimes Lead to Market Declines?

Many are puzzled as to why seemingly bullish news can lead to market declines. The key lies in the nature of the bullish signal:

Verbal Policy Bullishness: Often, it is all talk with little follow-through. The specifics of implementation, who will execute it, the timeline, and how to ensure it happens are all uncertain.

Policy Implementation Bullishness: This involves concrete steps that are either already in place or will be implemented in the short term. It is clear to everyone that "something is being done."

Only policies that are truly implemented can be considered genuine bullish signals. Markets will rise more significantly and sustainably when backed by real action. If it is merely verbal bullishness, the market will tend to spike and then gradually fall back. A rapid spike followed by a quick drop indicates that while the policy is positive, the associated risks remain high.

In a situation of insufficient liquidity, a 10% rise today could be followed by a drop tomorrow. It is like having only $100 in your pocket and claiming to make a $1,000 deal. People might initially believe you, but when they see you only take out $100, they will become more cautious or even withdraw.

Especially in cases like Trump's, where there is a lot of talk but no money has been committed, only preparations have been made. While these preparations are important, without real funds entering the market, capital is not foolish.

Conversely, if you continuously have money coming in and take out $10,000, claiming to make a $1,000 deal, people will have more faith in your ability to succeed and will actively participate. In fact, the cost you incur might be far less than $1,000.

Of course, this is a simplified explanation. You can expand on it as you see fit. The market does not pay for faith; it is pragmatic. The market is the market—trading is free, and everyone is responsible for their own money.

Which Cryptocurrencies Might Benefit from Bitcoin as a Strategic Reserve?

First Tier: Bitcoin (BTC)

BTC: The direct beneficiary, core asset of the strategic reserve, with long-term scarcity supporting its price.

Second Tier: Ethereum (ETH), Solana (SOL)

ETH: A mature ecosystem, leader in DeFi and NFTs, with high institutional recognition.

SOL: Excellent technical performance, with a futures ETF launching on the Chicago Mercantile Exchange (CME) on March 17 (likely to see a short-term spike within 12 days), driven by inflows of hot money from outside the Binance Smart Chain.

Third Tier: Ripple (XRP), Cardano (ADA)

XRP: Advantage in cross-border payments, attention from the White House team and ETF institutions.

ADA: Regulatory clarity, with a futures ETF launch imminent.

These are the cryptocurrencies that are being publicly discussed and supported by the Trump team, the White House team, and ETF institutions. Others should be considered on a similar level.