In these first weeks of March, the crypto market has been rocked by major developments, raising both excitement and serious concerns about regulation, security, and government involvement.
President Trump’s announcement of a U.S. Crypto Strategic Reserve sent shockwaves through the industry, momentarily pushing Bitcoin past $93,000 before a rapid pullback erased gains.
At the same time, industry leaders like Solana’s Anatoly Yakovenko and Cardano’s Charles Hoskinson voiced skepticism, questioning whether government control threatens crypto’s decentralized foundations.
With a White House crypto summit on the horizon, tensions are mounting.
Will this reserve mark a turning point for digital assets, or will it introduce new risks that shake investor confidence?
Let’s explore more!
President Trump Announces U.S. Crypto Strategic Reserve
Source: Cointelegraph
On March 3, President Trump unveiled plans to establish a U.S. Crypto Strategic Reserve, aiming to position the United States as a leader in the cryptocurrency sector.
The reserve will include major cryptocurrencies such as Bitcoin, Ethereum, XRP (Ripple), Solana, and Cardano.
This executive order is considered a symbolic gesture, being the first time that Bitcoin has been formally recognized as a reserve asset by the United States government.
The implementation of the Crypto Strategic Reserve raises several questions:
- Oversight & Management: No clear decision yet on which government agency will manage the reserve, how crypto will be acquired, or how security will be ensured.
- Ethical Concerns: Critics worry that taxpayer funds could be exposed to crypto market volatility. Additionally, the administration’s close ties to the crypto industry raise concerns about conflicts of interest.
The proposal has sparked discussions about its strategic value and potential risks.
Some view it as a move to position the United States as a leader in the cryptocurrency sector, while others caution against the volatility and unpredictability of cryptocurrencies.
Crypto Market After the Announcement
Following Trump’s announcement, the crypto market experienced a strong surge on March 3, with several major assets posting impressive gains.
Leading the rally, Bitcoin jumped 9%, reaching $93,000, while Ethereum climbed 11% to $2,500.
Altcoins followed suit, with Cardano (ADA) delivering a remarkable 50% rally, hitting $1.17 and Solana (SOL) surging 20% to $180 – One key factor behind Solana’s surge was the community’s decision to approve ‘SIMD-0228’ through a collective vote, which we will see below.
However, these gains were short-lived as prices retreated to pre-announcement levels throughout the week.
Bitcoin fell back to around $82,000, Ethereum dropped to $2,000, XRP declined nearly 12%, Solana lost approximately 16%, and Cardano (ADA) tumbled about 18%.
Trump’s Crypto Executive Order Sends Shockwaves Through the Market
Source: Margo Martin
The cryptocurrency market started March 6 on a positive note, with Bitcoin climbing 4% to $92,000 and Ethereum rising 5% to $2,500.
Also, XRP posted a slight 0.028% increase to $2.55, while Solana (SOL) inched up 0.011% to $143.94. Cardano (ADA), however, dipped 0.069%, settling at $0.895671.
But the day took a dramatic turn when the U.S. President Donald Trump signed a crypto executive order authorizing the creation of a strategic cryptocurrency reserve using government-held tokens.
The announcement triggered an immediate sell-off, sending Bitcoin plunging 5% to $85,000, according to Reuters.
Despite the knee-jerk reaction, the market quickly stabilized. By the start of the European trading session on March 7, Bitcoin had rebounded to $89,200, signaling renewed investor confidence.
By the time of this article, Bitcoin (BTC) is trading at approximately $87,659. Ethereum (ETH) has decreased by 1.81% over the past 24 hours, currently priced at $2,169.12. Solana (SOL) is valued at $145.94, and Cardano (ADA) is hovering around $0.8484.
Meanwhile, XRP has experienced a decrease of approximately 4.09% over the past 24 hours, currently trading at $2.49.
With total market capitalization nearing $3 trillion, attention now shifts to the White House Crypto Summit on March 7, where Trump is expected to outline regulatory policies, financial innovation strategies, and the role of cryptocurrencies in national reserves.
Texas Senate approves strategic to invest public funds in cryptocurrencies
Image created with AI
Texas is leading a new trend in the United States by making significant progress in implementing public investments in cryptocurrencies.
Recently, Senate Bill 21 (SB-21) was approved, establishing a strategic reserve of Bitcoin and other digital assets in the state.
Senator Charles Schwertner, the bill’s author, argued that the strategic reserve will strengthen Texas’ balance sheet, comparing Bitcoin to gold as a scarce asset and a hedge against inflation.
He emphasized that the uncontrolled printing of money has caused the devaluation of the U.S. dollar, justifying the need for diversification with digital assets.
Initially, the bill mentioned only Bitcoin, but it was revised to include other digital assets, especially after Donald Trump’s executive order in January 2025, which directed a study on the feasibility of a federal cryptocurrency reserve.
Texas stands out not only for its pro-Bitcoin policies but also for its economic strength. With a GDP of approximately $2.3 trillion, Texas has the second-largest economy in the United States, trailing only California.
This figure places the state in a position comparable to entire national economies, such as Canada, which recorded a similar GDP during the same period (2023).
Solana co-founder raises doubts about Trump’s crypto holdings despite SOL being part of it
Source: Cointelegraph
Solana co-founder and CEO Anatoly Yakovenko has expressed reservations about the U.S. government’s proposal to establish a national cryptocurrency reserve, despite Solana’s native token, SOL, being among the selected assets.
Yakovenko’s primary concern is that government control over such a reserve could undermine the decentralized nature of cryptocurrencies.
On March 6, he posted on X (formerly Twitter), Yakovenko outlined his preferences regarding the establishment of a U.S. crypto reserve:
- No National Crypto Reserve: He believes that having no federal crypto reserve is preferable, as government oversight might compromise decentralization.
- State-Level Crypto Reserves: Yakovenko suggests that individual states managing their own crypto reserves could serve as a safeguard against potential missteps by the Federal Reserve.
- Objective Criteria for Inclusion: He advocates for clear, measurable standards for cryptocurrencies to qualify for inclusion in any national reserve. Such criteria should be rational and, if established, the Solana ecosystem would strive to meet them.
Source: Anatoly Yakovenko
These comments come in response to reports indicating that Ripple had lobbied for Solana’s inclusion in the U.S. crypto reserve to bolster the legitimacy of XRP’s selection. Yakovenko clarified that he was neither consulted nor involved in any lobbying efforts for SOL’s inclusion.
Similarly, Cardano founder Charles Hoskinson said in a March 5 video, that he was unaware of ADA’s inclusion in the reserve prior to the official announcement and that no Cardano representatives had been invited to the upcoming White House crypto roundtable.
The debate highlights a broader concern within the crypto community: while government initiatives can provide legitimacy and support, they may also pose risks to the foundational principles of decentralization that underpin many digital assets.
The Solana community is preparing to vote on the ‘SIMD-0228’ proposal
Source: CoinMarketCap
Solana validators are getting ready to vote on SIMD-0228, a proposal that could change how new SOL tokens are created by adjusting inflation based on staking levels instead of following a fixed plan.
Currently, Solana’s inflation rate begins at 4.6% per year and decreases by 15% annually until it stabilizes at 1.5%. Under the proposed system, inflation would increase if the staking rate falls below 33%, incentivizing more users to stake their SOL tokens and enhancing network security.
On the other hand, if staking stays high, the system would lower inflation to prevent too many new tokens from being created.
Supporters, like Matthew Sigel from VanEck, say this could make SOL rarer and more valuable, helping reduce selling pressure and making its economic model stronger.
The vote is set for Epoch 743 this weekend, and if approved, inflation could fall below 1% per year, though some worry about the risks of basing inflation on staking levels alone.
Tariffs on Cars from Mexico and Canada to Be Postponed
Image created with AI
On March 5, the U.S. President Donald Trump decided to delay the imposition of 25% tariffs on automobiles imported from Mexico and Canada for one month.
White House Press Secretary Karoline Leavitt confirmed that this decision was made after discussions with major U.S. automakers—Ford, General Motors, and Stellantis—which have significant operations in these countries.
Trump’s initial measure aimed to pressure Mexico and Canada to strengthen their efforts in combating fentanyl trafficking and illegal immigration. However, after discussions with industry leaders, it was decided to grant this extension, which will remain in effect until April 2.
The Canadian Prime Minister, Justin Trudeau, responded by imposing the same 25% tariff on American products. The American counter-response came shortly after.
The Chinese government also responded with a 15% tariff on American products such as wheat and chicken and a 10% tariff on others, such as fruits and vegetables.
The tariffs could jeopardize another campaign promise made by Donald Trump himself: lowering the cost of living and grocery prices.
With the tariff increase, if an American company used to buy a product from Canada for $10, for example, it will now have to pay $12.50. The consumer will end up covering the difference.
The price of Bitcoin surpassed the $90,000 mark following President Donald Trump’s announcement to postpone tariffs on automobiles from Canada and Mexico.
This decision, along with economic measures from Germany and China, boosted risk markets, benefiting assets like Bitcoin.
Additionally, the U.S. dollar index hit its lowest level since early November, which may have also contributed to the appreciation of cryptocurrencies.
Analysts at Swissblock note that Bitcoin’s fundamentals remain strong, indicating an upward trend and making a bear market unlikely in the short term.
This situation arises amid trade tensions in North America, as the U.S. seeks to renegotiate trade and security terms with its neighbors.
The decision to delay the automobile tariffs provides temporary relief for Mexico and Canada’s automotive industries, which are highly integrated into the U.S. market.
In Summary…
This week’s events highlight the growing tension between regulation and decentralization in crypto. The U.S. Crypto Strategic Reserve has sparked debate, while market volatility underscores the need for clearer policies and stronger protections. As regulators and industry leaders respond, the coming weeks will be crucial in shaping the future of digital assets.
