Trumps Crypto Reserve Ignites
President Trump’s proposed U.S. Crypto Strategic Reserve, encompassing Bitcoin, Ethereum, XRP, Solana, and Cardano, has ignited controversy among industry leaders. Critics contend that including XRP and Cardano dilutes Bitcoin’s credibility, with some accusing Trump of leveraging the initiative for political leverage rather than economic merit. However, proponents suggest it might hasten SEC approvals for ETFs and clarify regulations for select cryptocurrencies. Market reactions have been volatile—initial optimism from the reserve announcement was swiftly overshadowed by Trump’s tariffs on Canada, Mexico, and China, prompting a sharp sell-off. Bitcoin plummeted over 10%, Ethereum sank more than 15%, and centralized exchanges reported over $1 billion in liquidations. Crypto ETFs also faced pressure, with U.S. spot Bitcoin ETFs shedding $74.2 million and Ethereum ETFs enduring an eight-day outflow streak.
In other developments, the crypto sector saw significant funding boosts. Flowdesk, a crypto market maker, raised $52 million in a Series B extension to bolster its trading infrastructure, introduce a crypto credit desk, and grow its global team and footprint. Meanwhile, Across Protocol clinched $41 million in a token sale spearheaded by Paradigm to refine its swift, intents-based cross-chain transfer system. On the security front, Bybit’s CEO, Ben Zhou, disclosed that 20% of the $1.4 billion pilfered in a recent hack remains untraceable, as hackers converted most stolen Ether into Bitcoin using THORChain. Efforts to freeze the remaining traceable funds intensify, with the next week proving pivotal as hackers attempt to funnel assets through exchanges and OTC platforms.