The News
President Donald Trump announced plans for a US “crypto reserve” composed of five digital tokens Sunday, marking an unprecedented federal foray into the highly speculative and volatile cryptocurrency market.
Bitcoin, by far the most stable and well-used of Trump’s reserve picks, gained more than 10% in value on the news, halting a recent slide, but the “initial euphoria soon gave way to questions,” Bloomberg noted, including as to Trump’s motivations for the announcement. “For a president who thrives on being the market’s hero, last week’s risk asset performance was anything but inspiring,” QCP Capital said, according to Bloomberg. “The political calculus was clear — Trump needed a win before his approval ratings start slipping, a metric he likely takes very personally.”