Gordon Johnson, an analyst at GLJ Research, criticized what he called market “corruption” Sunday following President Donald Trump‘s announcement of a strategic U.S. cryptocurrency reserve that would include several digital assets.
What Happened: “Markets driven by corruption. This can’t last too long,” Johnson wrote on X, responding to allegations that Trump’s proposed cryptocurrency purchases aligned with holdings previously owned by his crypto advisor David Sacks.
The controversy emerged after Trump announced plans for a strategic cryptocurrency reserve that would include Bitcoin BTC/USD, Ethereum ETH/USD, XRP XRP/USD, Solana SPL, and Cardano ADA/USD. The announcement sent crypto markets soaring, with Bitcoin jumping 8.82% to $93,653, while Cardano surged over 70%.
Armand Domalewski, co-founder of YIMBYs for Harris, had alleged “naked corruption” in Trump’s selection of cryptocurrencies, claiming they matched Sacks’ portfolio. Sacks, appointed as White House AI and Crypto Czar in December 2024, quickly denied the accusation.
“I sold all my cryptocurrency (including BTC, ETH, and SOL) prior to the start of the administration,” Sacks wrote on X, suggesting he had divested his holdings to comply with government ethics rules.
Why It Matters: The announcement came after Trump issued an executive order in January creating a cryptocurrency working group. Critics like economist Peter Schiff questioned the rationale behind including certain altcoins, particularly XRP, while Cardano founder Charles Hoskinson defended the selections.
The global cryptocurrency market capitalization jumped 10.57% to $3.12 trillion following Trump’s announcement, even as U.S. stock futures edged lower Sunday evening.
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