- Trump’s announcement of a U.S. crypto strategic reserve, initially excluding Bitcoin and Ethereum before reversing course, triggered a $230 billion market surge while raising concerns about political motivations and insider trading.
- Suspicion intensified when a $200 million leveraged trade occurred moments before the announcement, fueling demands for greater transparency in government digital asset dealings.
It has been months since speculations hit the news desk about President Donald Trump creating a crypto strategic reserve. March 2 was D-Day. President Trump directed the President’s Working Group on Digital Assets to include Ripple’s XRP, Solana’s SOL, and Cardano’s ADA in the reserve.
A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL,…
— Trump Posts on 𝕏 (@trump_repost) March 2, 2025
Notably, sending shockwaves to Bitcoin enthusiasts, the first batch didn’t include Bitcoin, the king of crypto, nor Ethereum, the altcoin king.
An hour later, via Truth Social, Trump issued a follow-up clarifying that the two cryptocurrency giants, BTC and ETH, would also be included, calling them,” at the heart of the reserve”
And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum! https://t.co/wA6110D3aJ
— Trump Posts on 𝕏 (@trump_repost) March 2, 2025
With every move being tracked by the crypto community, the sudden shift has left speculations about the reasoning behind the initial exclusion.
Senator Cynthia Lummis, in the recent past, proposed a bill advocating for a Bitcoin-focused strategic reserve, calling for the U.S. Treasury to acquire one million BTC over five years. Fast forward, Trump endorsed this idea during his 2024 campaign.
Notably, making his decision to initially exclude Bitcoin was even more puzzling.
This move has sparked debate over whether the inclusion of multiple cryptocurrencies represents a broader embrace of digital assets or if it was merely a politically motivated decision.
On the other hand, Bitcoin maximalists argue that BTC alone should form the backbone of a national crypto reserve; others see this as a pivotal step toward mainstream institutional adoption.
Insider Trading Speculation Steams
What’s interesting is that the timing of the announcement raised immediate insider trading concerns. This is because, just hours before the news broke, a trader known as “Teddy Bitcoins” placed a whooping $200 million bet on BTC and ETH with 50x leverage. This risky move paid off massively as the assets surged following Trump’s clarification.
Going 50x long on $eth & $btc with $200,000,000 is crazy.
This is either a very rich degenerate or a market maker that is about to move the market in a meaningful way on the spot side.
2% dip and $200,000,000 gets wiped! pic.twitter.com/3vEphProui
— Teddy Bitcoins (@TeddyBitcoins) March 2, 2025
The crypto community quickly pointed fingers, with some alleging that someone close to the Trump administration had access to privileged information. Investor Mike Alfred even suggested that Trump’s inner circle may have leveraged political power for financial gain.
If “Bitcoin has no insider trading”
Explain this: https://t.co/DyaFxIuCdv
— Teddy Bitcoins (@TeddyBitcoins) March 2, 2025
Further controversy arose when journalist Ben Norton highlighted that Trump’s newly appointed AI and crypto czar, David Sacks, had indirect financial ties to assets included in the reserve. Although Sacks denied any personal crypto holdings, reports indicate that his investment firm still holds stakes in several crypto-related companies.
While there is no concrete proof linking Trump’s team to the leveraged trade, the sequence of events has fueled widespread suspicion. With crypto now under greater regulatory scrutiny, demands for transparency in government dealings with digital assets are growing.
Coinbase CEO Brian Armstrong argued that Bitcoin should have been the sole focus, calling it the “simplest and most logical successor to gold.” Similarly, Jeff Park of Bitwise criticized the inclusion of altcoins, warning that such a move could invite allegations of insider trading and market manipulation.
Conversely, Binance co-founder CZ took a more optimistic approach, suggesting that the reserve will likely evolve over time. He predicted that additional assets could be added in the future, signaling a shift in how governments engage with crypto.