Bitcoin Dominance Drops Below 50% Following Trump’s Crypto Reserve Announcement

The cryptocurrency landscape saw a significant shift when US President Donald Trump unveiled his plan for a "Crypto Strategic Reserve," which included not only Bitcoin but also several altcoins like XRP, Solana (SOL), and Cardano (ADA). While Bitcoin (BTC) surged by 10% following the announcement, the inclusion of altcoins led to a notable decline in Bitcoin’s dominance, which slipped from 55.4% to below 50% in a matter of hours.

Bitcoin's Surge Amid Altcoin Growth

Bitcoin, currently priced at $92,897, rose by approximately 10% following the announcement, but it was the altcoins that stole the spotlight. XRP (XRP) and Cardano (ADA) saw massive gains of 34.7% and 60.3%, respectively, in the 24-hour period after Trump’s post. Solana (SOL) and Ether (ETH) also experienced significant price increases, rising by 25.5% and 13.1%, respectively. Other altcoins that were not directly mentioned in Trump’s plan also saw upward momentum. In comparison, Bitcoin's 10% rise felt relatively subdued, as the altcoin rally gained more traction, driving Bitcoin’s dominance down to 49.6%.

Trump’s decision to include these altcoins alongside Bitcoin in the strategic reserve has caused a mixed reaction in the cryptocurrency community. While the announcement undeniably brought attention to the entire crypto space, the move was surprising to many, especially Bitcoin advocates.

Criticism of the Inclusion of Altcoins

The inclusion of altcoins in the Crypto Strategic Reserve did not sit well with all members of the Bitcoin community, nor with some critics of the cryptocurrency. Bitcoin enthusiast and critic Peter Schiff voiced his disapproval, stating that while he understood the logic behind creating a Bitcoin reserve — likening it to the country’s gold reserve — he found it illogical to include altcoins like XRP. "What’s the rationale for an XRP reserve? Why the hell would we need that?" Schiff questioned, emphasizing his view that Bitcoin was the only asset that could function as a strategic reserve.

Jeff Park, head of alpha strategies at Bitwise, called it a "huge political miscalculation" by Trump, arguing that focusing the reserve exclusively on Bitcoin would have made more sense. He pointed out that Bitcoin, being seen by many as “digital gold,” holds the most logical place as the primary asset in a nation’s reserve. Nick Neuman, CEO of Bitcoin custody solution Casa, also echoed these sentiments, arguing that the inclusion of altcoins with infinite supply and minimal utility was inconsistent with the purpose of a strategic reserve.

The Future of the Reserve: Will It Become Bitcoin-Only?

Some experts, such as Pierre Rochard, vice president of research at Riot Platforms, speculated that the reserve could eventually become Bitcoin-only, as altcoins may trend toward irrelevance over time in comparison to Bitcoin's proven store of value. The move to include altcoins, they argue, may ultimately be a short-term adjustment as the market matures and Bitcoin solidifies its position as the leading digital asset.

The decision to broaden the scope of the reserve follows weeks of evaluation by the President’s newly formed Working Group on Digital Assets, which is led by executive director Bo Hines and David Sacks, the White House’s AI and crypto czar. Despite the controversies surrounding the inclusion of altcoins, the creation of the reserve marks a significant moment in the development of the United States’ stance on cryptocurrencies.

What’s Next: The White House Crypto Summit

On March 7, President Trump will host the first White House Crypto Summit, where industry leaders will gather to discuss regulatory policies and stablecoin oversight. The summit will be chaired by David Sacks and administered by Bo Hines, with a focus on further shaping the US government’s approach to digital assets.

The strategic reserve and upcoming summit reflect the growing importance of cryptocurrency in the global financial system. While Bitcoin remains at the forefront of the conversation, the inclusion of altcoins highlights the complexity of the market and the evolving attitudes towards the digital assets that make up the broader cryptocurrency ecosystem. Whether or not altcoins will continue to play a significant role in the US Crypto Strategic Reserve will depend on future developments and the ongoing debate within the crypto community.

As of now, Bitcoin's dominance is in flux, but its position as the flagship cryptocurrency is unlikely to be usurped any time soon. How the reserve develops and whether other altcoins can maintain their upward momentum will be key factors to watch in the coming months.