The price of Bitcoin 
$63,946 recently dropped from $95,000 to a new daily low of $81,500. In an unexpected statement, the President of Ukraine indicated a willingness to return to negotiations. Meanwhile, Ethereum 
$1,820 has fallen to a $2,000 support level, and altcoins are experiencing even steeper declines. This raises the question: why are the U.S. cryptocurrency reserve plans failing to prevent such drastic drops?
U.S. Cryptocurrency Reserve Plans
On Sunday, Trump made a significant announcement regarding a reserve centered around BTC, including assets like XRP, SOL, and ADA. Following this news, BTC and altcoins surged rapidly, with ADA witnessing a 70% increase in just one day, though it has since reverted to its original position. This volatility is proving to be a nightmare for cryptocurrency traders.
Four states have already rejected the BTC reserve legislation, including some Republicans among the dissenters. Amid accusations that Trump Coin is a channel for bribery, essential steps for establishing a Federal Cryptocurrency Reserve are needed.
Concerns Surrounding the Cryptocurrency Reserve
Last summer, Trump campaigned to create a federal Bitcoin stockpile and appointed venture capitalist David Sacks as the cryptocurrency czar. A proposed Bitcoin bill by Republican Senator Cynthia Lummis seeks a $90 billion BTC acquisition over five years but has not garnered significant Republican support.
Financial expert and Trump supporter Joe Lonsdale criticized the idea of using taxpayer funds for cryptocurrency plans. Cornell University economist Eswar Prasad stated, “There’s nothing strategic or logical about this. It would be a fantastic deal for current Bitcoin investors but a terrible deal for taxpayers.” Overall, the markets are doubtful that the Republican party will unify around the cryptocurrency reserve idea with less than two years until midterm elections.
