“Request 1,000 to settle in 500”. This classic real estate negotiation strategy implies starting with extreme demand, creating leverage on the counterpart to finally seal the agreement at a lower price, which was its planned objective all the time.
The president of the United States, Donald Trump, previously a real estate tycoon, is apparently using the same strategy to ensure the strategic reserve of promised cryptocurrencies that includes Bitcoin (BTC) and probably Ether (ETH).
On Sunday, Trump said in Truth Social that he expects XRP focused on payments, Sol de Solana and Cardano’s tokens to be part of the strategic reserve of digital assets with Bitcoin and Ether in the center. The initial market reaction was lush, lifting the total market capitalization by 11% or $ 300 billion at $ 3.09 billion.
However, the rally ran out of steam on Monday when market participants began to criticize Trump for being poorly informed or ignorant for supporting the inclusion of XRP and Ada. As expected, the initial emotion raided the way for the realization that Trump still needs to ensure the approval of Congress, and the plans to invest in Altcoins contradict Doge’s efforts to reduce costs and reduce debt.
“The big problem here is the optics. When it includes Altcoins whose case of use is too nascent to be considered” strategic nationwide, “runs the risk of assuming an internal treatment, even if it was obviously false. This is politically negative, even among a subset of cryptographic enthusiasts,” Jeff Park, head of Alpha strategy to Bitwise investment management, in X. in X.
“Trump is about to understand in Crypto Land what Bitcoin, and only Bitcoin, he represents,” Park added.
However, according to some observers, the mention of Altcoins seems to serve as an extreme form of demand, aimed at overwhelming the opposition (Congress) and creating leverage in discussions about the strategic encryption reserve.
“The announcement is probably Trump’s usual negotiation tactics. That is, asking for a strategic reserve with XRP, Sun and ADA, so you can get one for BTC (and perhaps ETH), “Ilan Solot, senior strategist of the Global Marex Solutions market, said in a client’s note entitled” Delete his enthusiasm. “
Solot added that the United States would retain the reservation of digital assets arrested, but the probability that the Government bought fresh BTC is less than 50%. Meanwhile, ETH purchase chances are small but real, while Altcoins are lowercase.
Critics argue against XRP and adapt that these cryptocurrencies lack the presence of the real world and the established utility of Ethereum and Solana, which actively support financial activities through Stablecoins.
In addition, the CME has not yet announced plans to enumerate XRP and ADA futures, which is probably that many are against the addition of these currencies to the National Reserve. Keep in mind that before approving the ETFs of Bitcoin and Ether Spot, the SEC had approved the ETFs that invest in the future BTC and ETH that quote on CME, trusting the exchange monitoring system to address the pricing concerns.
Jason Atkins, commercial director of the Cryptographic firm Auros, said the market reactions to Trump’s advertisements are developed in three phases, with the first characterized by rumors, the second by a hyperbolic announcement and the last one due to difficult negotiations.
“The second phase is triggered by an official Trump ad The phase phase.
Atkins added that the possibility of another leverage wash remains high as investors reassess the reality of bureaucracy, negotiations and uncertainty surrounding the real flow of funds.
“Since Congress’s approval remains an obstacle and the moment of the real movements of the funds is uncertain, merchants and investors must evaluate whether this is a structural change or simply another volatility cycle driven by speculation,” ATKINS said.
