By Manoj Dharra
BTC up as U.S. Crypto Reserve Proposal Gains Momentum; ETH & Altcoins Struggle
Bitcoin Surges to $85,600 Amid Growing Crypto Momentum
Ethereum and Altcoins Struggle in Comparison
Positive Momentum for Bitcoin, Caution for Altcoins
Bitcoin (BTC) has surged to $85,655, marking a 1.3% gain in the past 24 hours. This upward movement comes as Bitcoin aims to break through its 50-day moving average, with analysts eyeing the 200-day average at $87,500 as a key resistance level. U.S. Cryptocurrency Reserve Proposal Gains Momentum President Trump’s proposal to establish a national cryptocurrency reserve, which includes assets like Bitcoin, Solana, and XRP, is gaining traction and could position the U.S. as a global leader in digital assets.
In a move that could reshape U.S. digital asset policy, reports suggest the Trump administration plans to buy Bitcoin using tariff revenue, without burdening taxpayers. This initiative has added optimism to Bitcoin’s bullish outlook.
Additionally, Michael Saylor’s Bitcoin proxy firm, Strategy, purchased another $285.8 million worth of Bitcoin, further fueling positive sentiment in the market.
However, Bitcoin ETFs faced a setback, losing over $800M in April as institutional investors leaned more towards bonds amid tariff volatility.
Ethereum and Altcoins Struggle in Comparison
Meanwhile, Ethereum (ETH) is trading at $1,631.08, showing a slight decline of 2.8% from the previous close. Ethereum faces uncertainty with the U.S. Securities and Exchange Commission (SEC) delaying its decision on whether Grayscale can allow staking for its Ethereum ETFs, with a final decision expected by mid-2025. This regulatory delay contributes to Ethereum’s current struggle in the market, as its price continues to languish below key levels.
Solana (SOL) and Avalanche (AVAX) also face minor declines, with Solana down by 1.2% to $132.29 and Avalanche seeing a 2.6% decrease, priced at $19.90.
Mantra’s OM token surged 20% after a dramatic sell-off, while VeThor’s VTHO rose 37% with UFC CEO Dana White joining as a strategic advisor, boosting hopes for mainstream adoption — and recognition — of the RWA-focused token.
Outlook: Positive Momentum for Bitcoin, Caution for Altcoins
Bitcoin’s recent rally highlights its resilience and potential to continue rising, especially as institutional players like Michael Saylor’s Strategy firm remain heavily invested in BTC. The proposal for a U.S. cryptocurrency reserve is a significant development, adding a sense of legitimacy and stability to the market, which could drive further institutional adoption. As Bitcoin nears the $87,500 resistance, investors are closely watching for a potential breakout.
In contrast, Ethereum and other altcoins like Solana and Avalanche are facing a more challenging environment. The regulatory uncertainty surrounding Ethereum and the broader market’s volatility may dampen short-term optimism for these assets. As a result, Bitcoin remains the primary focus for those seeking stability and potential growth, while altcoins may face continued headwinds in the near future.
The global crypto market capitalization stands at $2.36 trillion, reflecting a 2.29% increase in the past 24 hours, indicating a recovery in market sentiment. This trend suggests that the crypto market is in a phase of cautious optimism, with Bitcoin leading the charge.
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