Is Donald Trump's crypto plan disappointing? Bitcoin, Ether, Solana traders meanwhile chase downside protection, here's what you should know

US President Donald Trump signed an order on Thursday to create a government “crypto reserve” made up of Bitcoin, Ethereum, Solana, and other cryptocurrencies seized during law enforcement actions. However, the reserve won’t buy new crypto as it’ll only hold what’s already taken in enforcement actions. This disappointed many traders who hoped the government's buying of crypto would boost prices. Instead, investors are rushing to buy short-term “put options” for Bitcoin, Ethereum, and Solana.

Put options helpful for crypto investors?

Put options act like insurance—if prices drop, holders can sell at a pre-set higher price to limit losses. Data shows traders are worried about prices falling in the next few weeks, especially with big economic updates like the US jobs report (NFP) and a major crypto event happening Friday.

XRP, though, is staying strong. Analysts say longer-term options for Bitcoin and Ethereum still show some optimism, with investors betting on price rebounds after April. Trump’s move is part of his growing interest in crypto. Unlike past presidents, Trump has openly supported cryptocurrencies, even launching his own NFT collections and calling for pro-crypto policies to keep the U.S. competitive. Still, this reserve plan feels cautious—it doesn’t signal full government adoption yet.


For basic investors, the takeaway is that short-term fear is driving put buying, but some hope remains for a rebound later. Trump’s crypto-friendly stance might lead to bigger moves in the future, but for now, the market is stuck waiting for clearer signals. This reflects how crypto remains tied to politics—government decisions can swing prices, and Trump’s actions (or lack thereof) are keeping traders on edge.

FAQs:

What are some popular cryptocurrencies?
Some of the most popular cryptocurrencies include Bitcoin, Ethereum, Solana, and much more.