The crypto community appeared caught off guard by the scope of Trump’s plan. Bitcoin maximalists, who have long dismissed alternative digital assets as inferior, voiced immediate concerns about diluting the strategic value of a government reserve.
The expanded cryptocurrency initiative marks a significant departure from Trump’s campaign rhetoric, which primarily centered on Bitcoin. The inclusion of smaller altcoins surprised even some of his staunchest crypto supporters, many of whom had invested political capital backing his Bitcoin-centric approach during the contentious election season.
As the largest and oldest digital currency, Bitcoin commands over half the global cryptocurrency market capitalization, giving it unmatched dominance in the digital asset space. Trump’s pivot toward a more diversified crypto portfolio has created an unusual rift between the administration and key figures in the cryptocurrency space who helped shape his digital asset policy during the campaign.
Several of Trump’s key supporters in the cryptocurrency sector expressed surprise and reservations about the expanded plan. Coinbase CEO Brian Armstrong suggested, “Just bitcoin would probably be the best option – simplest, and clear story as successor to gold.”
The White House has not yet provided specifics regarding the proposed quantities of each cryptocurrency, acquisition methods, or whether additional digital currencies might be included.
Eric Trump, the president’s son, claimed the price increases validated his recent social media recommendations to invest in cryptocurrencies, stating, “Hopefully, I made someone’s life just a little bit better.”
The president has positioned himself as a champion for the cryptocurrency industry, which he described in his announcement as having endured “years of corrupt attacks by the Biden administration.” The sector, feeling unfairly targeted by the previous administration, contributed substantially to Trump’s election campaign. His administration’s early weeks have featured several initiatives supporting cryptocurrency, including halting prominent enforcement actions by the Securities and Exchange Commission.
Cryptocurrency valuations rose dramatically following Trump’s election victory last year. When Bitcoin first surpassed $100,000 in early December, Trump took credit with a social media post declaring “YOU’RE WELCOME!!!”
However, prices have declined since Trump’s inauguration. He has faced criticism, even from allies within the cryptocurrency community, for helping launch a personal meme coin shortly before taking office that subsequently lost significant value. Market enthusiasm has further diminished due to the collapse of meme coins associated with First Lady Melania Trump and Argentine President Javier Milei, along with a major cryptocurrency exchange breach attributed to North Korea by the FBI.
“Why is crypto in the toilet if Trump is crypto king?” questioned Dave Portnoy, an influencer and cryptocurrency enthusiast, in a social media post last week.
In addition to Sunday’s announcement, Trump has also recently revealed plans to host industry leaders at a White House “Crypto Summit” scheduled for Friday.
