Bitcoin’s Market Share Slips Below 50% as Trump Unveils Crypto Reserve Plan

Trump's Crypto Reserve Plan Shakes the Market

On Sunday, Trump unveiled a plan to create a U.S. Crypto Strategic Reserve, which he claims will help solidify the country’s leadership in the digital asset industry. According to sources close to the president, the reserve is expected to hold a mix of top cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA).

Trump’s announcement represents a stark departure from previous U.S. government policies, particularly under the Biden administration, which took a more regulatory-heavy approach toward crypto. In his statement, Trump criticized what he called “anti-crypto” policies of the past and vowed to integrate digital assets into the nation’s financial strategy.

Market Reaction: Bitcoin Falls as Altcoins Surge

The announcement triggered significant price movements across the crypto market. Bitcoin briefly surged past $94,000 before retracing, while Ethereum climbed 12% to $2,516. The biggest winners, however, were alternative cryptocurrencies (altcoins) included in the proposed reserve:

XRP skyrocketed by 30% following the news. Solana (SOL) gained 20%. Cardano (ADA) surged 50%.

Despite Bitcoin’s price increase, its market dominance—the percentage of total crypto market capitalization held by BTC—fell below the 50% threshold. This shift indicates growing investor interest in alternative assets and could mark the beginning of a broader market transition.

The Rise of Altcoins and Changing Market Trends

Bitcoin has long held its position as the dominant cryptocurrency, with its market share peaking at over 65% in 2020. However, previous “altcoin seasons” have seen its dominance shrink as investors diversify into other projects with innovative use cases.

The latest drop in Bitcoin dominance suggests that traders are now looking beyond BTC, favoring projects with broader applications, such as smart contracts (Ethereum, Cardano) and fast payment solutions (XRP, Solana). Analysts believe that this could indicate a new cycle where altcoins outperform Bitcoin in the short to medium term.

Regulatory and Political Implications

When the Crypto Strategic Reserve moves forward, it could lead to increased regulatory clarity and institutional adoption. Some critics argue that government involvement in crypto markets could lead to increased regulation and centralization—two issues that go against the decentralized ethos of blockchain technology.

What’s Next for Bitcoin and Crypto?

Bitcoin’s declining dominance, combined with Trump’s endorsement of a diverse crypto reserve, suggests that the industry is evolving beyond BTC. While Bitcoin remains a key store of value, alternative projects are gaining traction, and investor sentiment appears to be shifting towards a more diversified approach.

With the U.S. government stepping into the crypto space in an unprecedented way, the next few months could be critical in determining the future of the digital asset market. Investors and policymakers alike will be closely watching how this plan develops—and whether it will reshape the industry in the long run.