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Just a few days ago, Mashable published an article investigating why Bitcoin and other cryptocurrencies were suddenly in a freefall. Of the four main reasons, three were attributable to Donald Trump and his actions as president.
Trump’s Crypto Announcement
On his social media platform Truth Social, Trump announced that the U.S. government would create a “Crypto Strategic Reserve” and begin buying various cryptocurrencies. Trump specifically mentioned five: Bitcoin, Ethereum, XRP, Solana, and Cardano.
Crypto immediately went up across the market. Bitcoin, for example, shot up from the $85,000 range to the $95,000 range, ending a seemingly downward spiral that the crypto market was experiencing.
Critics immediately called out Trump and his administration for the move. For one, it seemed like a bizarre strategy for an administration spearheading a cost-cutting initiative led by Elon Musk to use taxpayer dollars to buy up cryptocurrencies.
David Sacks and Crypto Connections
While most have likely heard of Bitcoin and Ethereum, the other three cryptocurrencies mentioned by the president serve very niche crypto audiences. Solana is probably best known as the platform on which many meme coins are built. For example, Trump’s controversial meme coin is traded on the Solana blockchain.
A big spotlight was also put on David Sacks and his seemingly coincidental connection to the five specific cryptocurrencies that Trump wants the U.S. government to buy. Sacks was an early investor in Solana and had a significant amount of Solana crypto holdings. Sacks claims he has since sold off all of his crypto holdings, but questions remain about his venture capital firm Craft Ventures and its crypto connections.
What’s Next?
We’ll have to wait and see exactly what Trump and Sacks have planned to fully look into the ramifications here, but so far, it’s not looking good. As for Trump’s attempt to help the crypto markets, the bounce appears to have been only temporary. As of publication, most cryptocurrencies have dropped back to their trading levels before Trump’s announcement.
