The U.S. Government will only buy Bitcoin, not ETH, XRP, SOL, and ADA

The US government will only buy Bitcoin for strategic cryptocurrency reserves, according to sources from Washington. Previously, Trump announced that the reserve fund includes BTC, ETH, SOL, ADA, and XRP, causing controversy. However, other tokens will only be added if confiscated, not actively purchased. Initial Market Reaction The announcement of the US government's cryptocurrency reserves caused Bitcoin to rise 11% to $94,164 and Ethereum to rise 13% to $2,516, along with strong increases in XRP, Solana, and Cardano. However, by March 3, 2025, the market adjusted, and Bitcoin dropped to $86,000, showing the sensitivity of cryptocurrencies to market policy and volatility. Meaning of Strategy: Diversifying National Reserves The establishment of the Crypto Strategic Reserve Fund marks the diversification of national assets, supplementing cryptocurrencies into traditional reserves. This move could enhance financial recovery and strengthen the US role in digital asset innovation, Federico Brokate believes that this is a sign that the US government is actively participating in the cryptocurrency economy. Criticism and Concerns The initiative to reserve cryptocurrencies has faced criticism for the risk of volatility and lack of supervision. Economist Stephen Cecchetti called this idea "nonsensical," expressing concerns about financial stability and the risk of illegality. Opposing views also argue that it may create disproportionate benefits for current cryptocurrency investors, increasing the wealth gap.