Bitcoin Stumbles, Altcoins Surge: Trump National Digital Asset Stockpile Shake-Up

- Bitcoin's price fell as supporters expressed disappointment after Trump's order - Optimism for altcoin reserves grew, driven by the strategy to promote stablecoins [Unblock Media] The market has once again fluctuated after former President Trump recently signed a new executive order regarding cryptocurrency and national digital asset reserves. Despite designating Bitcoin and other cryptocurrencies as strategic assets, Bitcoin's price fell immediately after the announcement, leaving Bitcoin supporters disappointed. On the other hand, the altcoin sector anticipates new growth opportunities as the order mentions 'diverse cryptocurrency reserves.' Following Trump's executive order, Bitcoin's price experienced a decline. Cointelegraph reported that the price of Bitcoin shifted downward immediately after the announcement of the executive order. Indeed, Bitcoin's price seemed to continue rising to $104,598 on January 17 but dropped to about $103,000 by 8:50 AM on January 24(KST). Industry experts explain that the market felt uncertain because the federal government classified Bitcoin as a strategic asset but did not specify concrete priorities. The CEO of Pear Protocol remarked on X that "the details of the executive order show that it's challenging to establish a national strategic reserve in a short time." Trump's executive order on cryptocurrency and national digital asset reserves includes a plan to establish a presidential working group on the digital asset market, considered a key component of the order. This group, chaired by David Sachs, the White House's head of AI and cryptocurrency, together with the heads of major agencies like the Treasury Department, Department of Justice, SEC, and CFTC, will develop a comprehensive regulatory framework for digital assets and specify a national digital asset reserve strategy. The group is expected to submit a policy recommendation report within 180 days, potentially significantly altering the previous administration's approach to central bank digital currency (CBDC) adoption and some cryptocurrency industry restrictions. The increased optimism for altcoin investments and the activation of stablecoin strategies are highlighted by the government's mention of diversifying cryptocurrency reserves. Ethereum, Ripple, Polkadot, among others, have already seen significant technological advancements in network expansion and smart contracts, raising expectations that altcoins could also become national reserve assets. jayplayco, who runs a crypto education channel, speculates that if the government curbs CBDCs and activates the stablecoin market, particularly those backed by US Treasury bonds, stablecoin growth would accelerate. Reactions from cryptocurrency influencers and the policy impact of Trump's executive order are also garnering attention. Journalist Eleanor Terrett emphasized on X that the previous administration's digital asset policies weakened the US economy's innovation drive and called for the new order to be more open and supportive of innovation. Meanwhile, CNBC noted that lobbying activities by major Bitcoin holders could intensify if altcoin prominence expands, which could accelerate market diversification in the mid-to-long term. In summary, the initial drop in Bitcoin's price is largely due to market uncertainty caused by the government's ambiguous message about prioritizing Bitcoin as a primary reserve asset. Conversely, the altcoin and stablecoin sectors are optimistic due to the government's stance on considering a 'diverse range of cryptocurrencies' as strategic assets. Industry experts believe the policy recommendations to be announced within 180 days will be a decisive turning point, emphasizing that how regulation and innovation are balanced will determine the future of the US cryptocurrency market.