Is too much of a good thing, actually a bad thing?
This is the exact dilemma that Bitcoin is currently going through; and the consequences could change the direction of this market forever.
As soon as Donald Trump was elected President, we were told that everything was about to change for Bitcoin. We finally had our “Bitcoin President” and that BTC’s price would be going up significantly.
The mood in the market couldn’t contain its excitement. We were still fresh off BTC Spot ETFs being approved and trading at an unprecedented rate in the US. And now, we had a President that finally was going to make the US a crypto-friendly country.
While the US is only one country, the harsh reality is that it is the most financially important country in the world. The decisions they make have huge ramifications across the world. Often other countries will follow the example of the US and implement similar policies.
This is why it is so critically important for the US to implement positive crypto regulations and why we were starving for it. Once we finally have regulations, the industry as a whole can finally move forward and grow stronger.
However, too much of a good thing is actually a bad thing.
We are quickly coming to the realization that Trump might actually be “too friendly” to crypto. Allowing and even participating in the degen junk that has become an eye-sore to the entire crypto market. After launching his own meme tokens, the Trump and Melania coin, it essentially gave a green light to the rest of the market that these types of tokens are completely fine. Not only that, but they wouldn’t face any prosecution either.
That was the first moment when Bitcoiners and other legitimate crypto users began to worry about what they had gotten themselves into.
We wanted a crypto-friendly President, but we didn’t want it to be like this. The launch of these 2 meme coins by Trump completely took the wind out of the momentum that was building before Trump’s inauguration.
But what came next was the dealbreaker for many Bitcoiners.
Trump campaigned hard to cater towards Bitcoiners. After all, they were at the top of the list of his donors. He promised that he would create a National Bitcoin Reserve, and make the US the strongest Bitcoin country in the world. This had Bitcoiners extremely excited. In their mind it was game; set; match. Bitcoin had finally won and now that mythical largest transfer of wealth in human history was about to take place.
On Sunday, Trump wrote a post on his Truth Social account to not only move forward with the Strategic Crypto Reserve, but for it to include XRP, Cardano, and Solana. There was no mention of Bitcoin, or even Ethereum.
This sent Bitcoiners into a state of meltdown.
About an hour later, Trump would add another post clarifying that he loves both Bitcoin and Ethereum, and that they would be at the heart of the Strategic Reserve.
However, the damage had already been done. While all of the cryptocurrencies pumped after this news, it does bring into question the legitimacy of this crypto reserve.
Nearly everyone would agree Bitcoin should be a part of the reserve. It is the most trusted, tested and respected project in all of cryptocurrency. Most would also accept Ethereum being included in the reserve as well. These have been the 2 blue-chip projects in crypto for several years now.
But that is where the list ends. XRP, ADA, and SOL up until now haven’t done enough to be considered legitimate enough to be included in the reserve. I say this even though Solana makes up a large percentage of my crypto portfolio.
If we let anything in the Nation Crypto Reserve, it lessens the value of it.
Up until now, Trump has lived up to, and has fulfilled most of what he campaigned on to cryptocurrency investors. Unfortunately, it has become more than we wish for, and that is a problem.
