Is Donald Trump Planning To Liquidate XRP To Buy Bitcoin?

Highlights

David Bailey says that Trump has signed an executive order to liquidate the government's XRP holdings.
Bailey suggests that the XRP liquidation may be for buying new Bitcoins.
The government's XRP liquidation will result in XRP's downtrend.

Recent rumors suggest that US President Donald Trump has signed an executive order to liquidate the government’s XRP holding. This has sparked speculation about Trump’s potential plan to purchase more Bitcoin by liquidating the holdings. Notably, Bitcoin Magazine CEO David Bailey took to X to share insights on Trump’s latest executive order on XRP. Let’s unveil the potential implications of the move.

Donald Trump’s XRP Liquidation: What Lies Ahead?

According to Bitcoin Magazine CEO David Bailey’s recent X post, Donald Trump plans to liquidate XRP.

Reportedly, President Trump has signed an executive order to consolidate and liquidate the US government’s XRP holdings. This development has sparked speculations about the government’s possible accumulation of more Bitcoins.

There’s still no official word from the Trump administration regarding the EO on XRP. However, Bailey asserts that Trump’s XRP liquidation could potentially lead to the government’s more BTC accumulation.

Trump’s Bitcoin Motives Remain Ambiguous

Bailey’s post on Trump’s XRP liquidation comes in response to WhaleWire founder Jacob King’s thread that highlighted Trump’s unexpected BTC statement. MicroStrategy’s Michael Saylor, a prominent Bitcoin advocate, reportedly urged President Trump to endorse Bitcoin by saying “Never sell your Bitcoin.”

However, according to the post, Trump didn’t quite deliver the message Saylor was hoping for. Instead, Trump reportedly responded with a more neutral statement, saying “Never sell your Bitcoin… that’s a little phrase they say… I don’t know if they’re right or not… who the hell knows.”

While Trump calls himself the crypto president and endorses crypto-focused policies, his reported statement sparks confusion.

Meanwhile, experts are split on Trump’s potential actions regarding Bitcoin. Farscater founder Dan Romero thinks the government will limit itself to profiting from confiscated Bitcoin assets, rather than purchasing new ones.

He says that the Trump government may include XRP in the crypto reserves through in-kind tax payments or quasi-donations. At the same time, Robert Kiyosaki thinks that if Trump buys Bitcoin, its price could skyrocket, potentially helping the US recover from its financial struggles.

How Will Trump’s Liquidation Plan Impact XRP Price?

At press time, XRP is trading at $2.33, marking a notable decline of 8.3% over the last 24 hours. Despite the daily decline and the monthly dip of 4%, XRP has gained more than 7% over the past week.

The XRP market is experiencing a significant shift in trader sentiment, reflected in a 13% drop in 24-hour trading volume, which now stands at $7.44 billion. This decline suggests that traders are becoming increasingly cautious, possibly due to market uncertainty and after the recent White House Crypto Summit.

In his X post, Bailey stated, “When the USG is done selling XRP it will be worth less than a cent.” Bailey suggested that the US government’s XRP liquidation will result in a further downturn in the token price. He sarcastically remarks that such a low value would enable extremely small transactions, saying, “Now that’s micro-transactions!”

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Nynu V Jamal

Nynu V Jamal is a Senior Journalist at CoinGape. She boasts more than 3 years of experience in content writing, with expertise in crypto and blockchain. She has contributed to platforms like CoinEdition and CryptoTale, demonstrating her proficiency in navigating the dynamic crypto landscape. Beyond her journalistic pursuits, Nynu is a literary enthusiast, having served as an Assistant Professor of English Language and Literature. She is a Master's degree holder in English Literature and a UGC NET qualifier. Her academic background has enabled her to publish research papers on literature, while also nurturing her creative side as a published poet. Her creative side extends to music, crafts, and art, which she actively explores. Her unique blend of analytical and creative skills allows her to craft engaging stories that captivate audiences. Stay updated with Nynu on LinkedIn

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