Bitcoin Retests $90,000 Amid Rumors of Trump's Crypto Reserve Plan

Bitcoin (BTC) has surged above $90,000 as rumors of preferential treatment in President Donald Trump's cryptocurrency reserve strategy surface.

The news comes ahead of the White House Crypto Summit, where Trump is expected to discuss with digital asset leaders.

Trump's Bitcoin Reserve Plan Revealed

According to Commerce Secretary Howard Lutnick, the cryptocurrency reserve strategy will be one of the main topics at the summit, which is scheduled to take place this weekend. Lutnick revealed that Trump supports the creation of a strategic Bitcoin reserve.

"The president wants a strategic Bitcoin reserve. But the big question is how do we deal with other cryptocurrencies?" Lutnick said. He emphasized that Bitcoin will be prioritized in the plan, while other cryptocurrencies will receive different treatment.

BTC Crosses $90,000

Shortly after the news of the reserve plan emerged, Bitcoin increased by more than 7%, trading at $90,097. This marked a significant recovery from recent lows.

Favorable Attitudes towards Bitcoin

Bitcoin has long been recognized as the leading asset in the cryptocurrency industry. Trump's focus on Bitcoin in this plan is not surprising. However, the fact that altcoins such as Ethereum (ETH), XRP, and ADA could also be included in the reserve has sparked debate among investors.

Skepticism about altcoins

While the inclusion of Bitcoin in the reserve has been well received, many industry experts have expressed concerns about the possibility of the administration including altcoins in this strategy. Peter Schiff, a prominent Bitcoin critic, has called Trump's cryptocurrency reserve plan "a massive market manipulation."

In addition, some analysts believe that favoring Bitcoin alone could cause an imbalance in the market, and if altcoins are not treated fairly, it could hurt the growth of the cryptocurrency industry.

Concerns about Ethereum

One of the major points of contention is Ethereum's role in this reserve strategy. Although developers and leaders from the Ethereum ecosystem will attend the conference, the blockchain still lacks clear representation in Trump's strategy.

Possible altseason

While Bitcoin may be prioritized in the reserve plan, many experts believe that altcoins will also have a chance to grow. Historically, Bitcoin's price surges have often led to a wave of altcoin growth.

Tim Haldorsson, founder of Luna Strategy, predicts that Trump’s plan will spur a wave of investment in altcoins. However, Henrik Zeberg Jensen of Swissblock Technologies is skeptical, arguing that the long-term success of altcoins will depend on their utility rather than Trump’s short-term decisions.

Conclusion

Trump’s Bitcoin reserve plan has boosted positive sentiment in the market, but there are still many unanswered questions about how the administration will handle altcoins. Regardless of the outcome, the strategy could mark a significant turning point in the development of the global cryptocurrency market.