Global Cryptocurrency Market on High Alert as US Embarks on Crypto Push
In a move that is sending shockwaves throughout the global cryptocurrency market, US President Donald Trump has vowed to make his country the "cryptocurrency capital of the world" and announced plans to develop a strategic cryptocurrency reserve. Experts say this bold move may inspire other nations to follow suit, leading to a more structured environment for institutional participation and potentially revolutionizing the way governments approach cryptocurrencies.
"By formally recognising Bitcoin, Ethereum, XRP, Solana and Cardano, the US government is taking a strategic step toward integrating cryptocurrencies into its broader financial and economic framework," said Rachel Conlan, Global Chief Marketing Officer at Binance. This move is likely to influence global regulatory approaches, encouraging other nations to explore similar initiatives.
Industry executives are indeed enthused about the developments in the US on cryptocurrency adoption. "The market's reaction has been remarkable — ADA surged past $1, XRP reached $3, and Bitcoin crossed $92,000," said Paras Malhotra, SVP - Trade, Custody and Business Operations at CoinDCX. In just 24 hours, nearly $315 million in Bitcoin shorts were liquidated, and over $330 billion flowed into the crypto markets.
However, the prices of major cryptocurrencies have seen volatile movements since the US' crypto push was announced. As of 18:08 IST, Bitcoin's price is down 10 per cent at $83,497, while Ethereum was down 11 per cent at $2,091. Malhotra from CoinDCX attributed the sell-off to institutional investors, particularly firms like BlackRock, which have offloaded significant amounts of Bitcoin and Ethereum.
Another factor contributing to the volatility is the intensifying tariff war between the US and China. The global crypto exchange Bybits saw a $1.4 billion hack recently, which has further hit user sentiment.
"With the creation of a strategic crypto reserve, we could be on the brink of a global crypto accumulation race — one that could push regulatory clarity forward and accelerate Web3 innovation," said Ashish Singhal, co-founder at CoinSwitch. India has everything it takes to lead the next wave of blockchain-driven transformation, with its deep pool of tech talent, entrepreneurial spirit, and thriving start-up ecosystem.
"But to do so, we must act now — embracing progressive policies, fostering innovation, and positioning ourselves as a hub for decentralisation," Singhal added. The Indian industry is calling for similar 'progressive policies' from the government in order to unlock the full potential of cryptocurrencies and blockchain technology.