Classic Real Estate Negotiation Strategy

“Ask for 1,000 to settle at 500.” This classic real estate negotiation strategy involves starting with an extreme demand, creating leverage over the counterparty to ultimately seal the deal at a lower price, which was your intended goal all along.

Trump’s Crypto Reserve Strategy

U.S. President Donald Trump, formerly a real estate tycoon, seems to be employing the same strategy in securing the promised strategic crypto reserve comprising bitcoin (BTC) and probably ether (ETH).

On Sunday, Trump stated on Truth Social that he expects payments-focused XRP, Solana’s SOL, and Cardano’s ADA tokens to be part of the strategic digital assets reserve, with bitcoin and ether at the core. The initial market reaction was exuberant, lifting the total market cap by 11% or $300 billion to $3.09 trillion.

However, the rally lost momentum on Monday as market participants began criticizing Trump for seemingly backing the inclusion of XRP and ADA without adequate knowledge. The initial excitement led to the realization that Trump still needs Congressional approval, and the plans to invest in altcoins contradict efforts to cut costs and reduce debt.

Concerns Over Altcoins

“Big problem here is optics. When you include altcoins whose use case is too nascent to be deemed ‘nationally strategic,’ you risk the assumption of inside dealing, even if it were patently false. This is politically negative, even among a subset of crypto enthusiasts,” said Jeff Park, head of alpha strategies at Bitwise Investment Management, on X.

“Trump is about to understand in crypto land what bitcoin—and only bitcoin—represents,” Park continued.

However, some observers note that the mention of altcoins could serve as an extreme demand tactic aimed at overwhelming opposition in Congress regarding the strategic crypto reserve.

Trump’s Negotiation Tactics

“The announcement is probably just Trump’s usual negotiation tactic. I.e. calling for a Strategic Reserve with XRP, SOL, and ADA, so he can get one for BTC (and maybe ETH),” said Ilan Solot, senior global market strategist at Marex Solutions. Solot indicated that the U.S. would maintain the apprehended digital asset stockpile, but the likelihood of acquiring new BTC is less than 50%. ETH purchases have a small but real chance, while those for altcoins are minimal.

Critics highlight that XRP and ADA lack the real-world presence and established utility of Ethereum and Solana, which actively support financial activities through stablecoins. Additionally, the CME has not announced plans to list XRP and ADA futures, likely contributing to opposition against adding these coins to the national reserve.

Market Reaction Phases

Jason Atkins, chief commercial officer at the crypto-making firm Auros, outlined that market reactions to Trump’s announcements unfold in three phases: rumors, hyperbolic announcements, and tough negotiations.

“The second phase is triggered by an official announcement from Trump or his team, which reflects the speculative nature of the first. His negotiation style—characterized by hyperbole, outsized promises, and demands beyond what is immediately feasible—often results in an initial surge in sentiment. We saw this overnight, as the market reacted positively, largely due to the relief following the risk reduction in phase one. However, caution is warranted,” Atkins noted.

Atkins added that there remains a high possibility of another leverage washout as investors reassess the realities of bureaucracy and the uncertainty surrounding the actual flow of funds.

“Given that Congressional approval remains a hurdle and the timing of real fund movements is uncertain, traders and investors will need to assess whether this is a structural shift or just another cycle of speculation-driven volatility,” he concluded.