“Ask 1,000 people to settle at 500.” This classic real estate negotiation strategy consists of starting with an extreme request, creating a lever effect on the counterpart to finally seal the agreement at a lower price, which was your goal planned from the start.
President Donald Trump, formerly a real estate magnate, apparently uses the same strategy to guarantee the promised strategic cryptography reserve including Bitcoin (BTC) and probably Ether (ETH).
Trump said on Sunday that he expects that XRP focused on payments, Solana de Solana and the Ada de Cardano tokens are part of the strategic reserve of digital assets with Bitcoin and Ether at the heart. The initial market reaction was exuberant, raising the total market capitalization of 11% or 300 billion dollars to 3.09 billions of dollars.
The rally, however, lacked steam on Monday while the market participants began to criticize Trump for being ill -informed or ignoring to support the inclusion of XRP and Ada. As expected, the initial excitement has paved the way for awareness that Trump still needs to obtain approval from the congress, and investment plans in Altcoins contradict DOGE efforts to reduce costs and reduce debt.
“The big problem here is optics. When you include altcoins whose use case is too emerging to be judged” strategic at the national level “, you risk the hypothesis of inner treatment even if it was manifestly false. It is politically negative, even among a subset of Crypto investment management,” said Jeff Park, head of alpha strategies in the management of Bitwise investments.
“Trump is about to understand in crypto landing what bitcoin – and only bitcoin – represents,” added Park.
However, according to some observers, the mention of altcoins seems to serve as an extreme form of demand, intended to overwhelm the opposition (congress) and to create a lever effect in discussions on the strategic cryptography reserve.
“The announcement is probably only Trump’s usual negotiation tactics. IE calling for a strategic reserve with XRP, SOL and ADA, so that it can get one for BTC (and perhaps ETH), “Ilan Solot, main strategist of the world market at Marex Solutions, said in a customer note entitled” Curb your enthusiasm “.
Solot has added that the United States would retain stocks of digital assets apprehended, but the probability that the government buys fresh BTC is less than 50%. Meanwhile, ETH’s chances of purchases are small but real while those of altcoins are tiny.
Critics argue against XRP and ADA stressing that these cryptocurrencies do not have the real presence and the established utility of Ethereum and Solana, which actively support financial activities through Stablecoins.
In addition, the CME has not yet announced its intention to list the future XRP and ADA, that is probably why many are against the addition of these documents to the national reserve. Note that before approving the Bitcoin and ETHER SPOT, the SEC had approved the FNB by investing in the term contracts on the BTC and the ETH listed by CME, trusting the exchange monitoring system to deal with price manipulation concerns.
Jason Atkins, commercial director of the Crypto Auros manufacturing company, said the reactions of the Trump announcements market take place in three phases, the first characterized by rumors, the second by a hyperbolic announcement and the last by difficult negotiations.
“The second phase is triggered by an official announcement by Trump or his team, which tends to reflect the speculative nature of the first. His style of negotiation – characterized by hyperbola, disproportionate promises and requests beyond what is immediately possible – often leads to an initial increase in feeling. Atkins told Coindesk in an email on Monday late.
Atkins has added that the possibility of another lever washing remains high while investors are reassessing the reality of bureaucracy, negotiations and uncertainty surrounding the real flow of funds.
“Given the approval of the congress remains an obstacle and that the moment of real fund movements is uncertain, merchants and investors will have to assess whether it is a structural change or other cycle of volatility focused on speculation,” noted Atkins.
