US President Donald Trump’s full embrace of digital assets has sent shock waves through the cryptocurrency market, driving a price surge while creating both new opportunities and heightened risks for investors and corporations.
Last week, Mr Trump said on his Truth Social network that the US was looking into creating a strategic reserve of digital assets, naming Bitcoin, Ethereum, Solana, XRP and Cardano as its potential core holdings.
The move rippled through financial markets, pushing Bitcoin up as much as 11 per cent to $95,000 on March 2, before retreating slightly to $88,000 on March 6, as traders scrambled to reposition their bets.
A crypto reserve, akin to Fort Knox for gold, would legitimise the asset class by establishing government-backed holdings. The US could use the stockpile to support its policy goals, potentially as a hedge against inflation.
But does this signal true mainstream adoption of digital assets, or are we witnessing yet another speculative frenzy? And should investors and corporations bet on crypto, or will a national reserve turn into a taxpayer-funded gamble?
The announcement comes on the heels of a tumultuous period for digital assets in which $800 billion was wiped from crypto markets in recent weeks, as the industry reeled from a series of scandals, including a record-breaking $1.5 billion Ethereum hack.
Investors, initially euphoric after Mr Trump’s November election victory, had been growing impatient with the new administration’s slow pace on crypto reforms. Many had expected immediate legislative changes to favour digital assets.
Instead, they got a so-called “memecoin” launch by Mr Trump himself – an experiment that ended with an 83 per cent collapse in value from a brief high, with the president encountering major criticism over the move.
Yet, the moment the US President name-checked crypto as a possible strategic reserve, sentiment reversed quickly. While the rally extended, many traders took the opportunity to lock in profits, causing Bitcoin to slip a bit from its recent highs.
One question no one seems to be asking is: if crypto collapses, who foots the bill in a US reserve?
The idea of a national crypto reserve is odd. Traditionally, reserve assets like gold serve as a hedge against inflation and economic downturns. Bitcoin, despite its growing acceptance in mainstream finance, remains a highly volatile asset – one that has seen multiple cycles of meteoric rise and catastrophic decline.
Last year’s all-time high of $109,225 was driven by two primary factors: the scheduled “halving” event – where Bitcoin’s issuance rate was cut in half, reducing supply – and Mr Trump’s election victory.
US law makers remain divided. Proponents argue that an official crypto reserve would force global recognition of the asset and accelerate institutional adoption. However, sceptics warn that taxpayer dollars could end up underwriting severe losses if the price crashes.
Yet, the fundamental case for Bitcoin remains unchanged. First, there is limited supply – capped at 21 million coins, a limit hardcoded into its protocol by its pseudonymous creator, Satoshi Nakamoto.
Second, there’s rising institutional investment. The approval of Bitcoin exchange-traded funds in the US last year, following a decade of rejections, attracted new investors to the asset and supported its price. The funds from big-name asset managers like BlackRock, Franklin Templeton and Invesco pulled in more than $110 billion from investors by the start of this year.
However, the volatility of Mr Trump’s influence means Bitcoin is now even more of a short-term casino than ever before. Traders hang on every word, and markets swing wildly based on his statements.
There are big implications for traditional finance. If the US reserve goes ahead, the days of dismissing crypto as a fringe asset are over. Hedge funds, wealth managers and even corporate treasuries will be forced to consider holding digital assets, if they do not already.
Companies like MicroStrategy, Tesla and Block (then called Square) have already allocated portions of their cash reserves to Bitcoin. This strategy is often employed as a hedge against inflation and potential devaluation of fiat currencies – government-issued money.
But with wider adoption comes the potential for systemic risk. If pension funds, endowments and sovereign wealth funds start holding digital coins in significant quantities, what happens if prices plunge?
Could a major downturn spill over into traditional financial markets? Could the Federal Reserve or US Treasury be forced into interventions to stabilise prices?
For investors and corporations holding crypto, the message is clear: Bitcoin is here to stay, but its price volatility is likely to remain extreme. They must ask themselves a fundamental question: what is Bitcoin’s real value?
If they believe in its long-term potential as a hedge against inflation and a decentralised alternative to fiat currency, then allocating a portion of investment portfolios or treasury reserves to Bitcoin makes sense.
But if they see it as a speculative mania driven by political theatrics, they may be better off staying on the sidelines.
For now, one thing is certain: Bitcoin has never been more entwined with US policy, and with Mr Trump at the helm, it is more volatile than ever. Every statement, every policy shift and every regulatory move is likely to trigger rapid market reactions. Investors who understand this new reality will either thrive or find themselves on the wrong side of yet another brutal crypto cycle.
Bitcoin’s fundamental mechanics remain unchanged: limited supply, increasing adoption and a maturing market structure. However, Mr Trump’s full-throated endorsement has introduced a new wild card, turning crypto into a political asset as much as a financial one.
Ultimately, Bitcoin’s fate as a reserve asset will depend on whether governments can stomach its unpredictability. If the US does follow through on large-scale crypto purchases, it could usher in a new era of financial legitimacy for these assets.
The real question now is: what will outlast Mr Trump’s presidency? In other words, what remains unchanged? Will Bitcoin still hold its place? If so, will adoption have grown?
In the midst of market turbulence, taking a long-term perspective is the key to seeing beyond the noise.
José Parra Moyano is the professor of digital strategy at IMD
Farasan Boat: 128km Away from Anchorage
Director: Mowaffaq Alobaid
Stars: Abdulaziz Almadhi, Mohammed Al Akkasi, Ali Al Suhaibani
Rating: 4/5
Healthy tips to remember
Here, Dr Mohamed El Abiary, paediatric consultant at Al Zahra Hospital Dubai, shares some advice for parents whose children are fasting during the holy month of Ramadan:
Gradual fasting and golden points - For children under the age of 10, follow a step-by-step approach to fasting and don't push them beyond their limits. Start with a few hours fasting a day and increase it to a half fast and full fast when the child is ready. Every individual's ability varies as per the age and personal readiness. You could introduce a points system that awards the child and offers them encouragement when they make progress with the amount of hours they fast
Why fast? - Explain to your child why they are fasting. By shedding light on the importance of abstaining from food and drink, children may feel more encouraged to give it there all during the observance period. It is also a good opportunity to teach children about controlling urges, doing good for others and instilling healthy food habits
Sleep and suhoor - A child needs adequate sleep every night - at least eight hours. Make sure to set a routine early bedtime so he/she has sufficient time to wake up for suhoor, which is an essential meal at the beginning of the day
Good diet - Nutritious food is crucial to ensuring a healthy Ramadan for children. They must refrain from eating too much junk food as well as canned goods and snacks and drinks high in sugar. Foods that are rich in nutrients, vitamins and proteins, like fruits, fresh meats and vegetables, make for a good balanced diet
So what is Spicy Chickenjoy?
Just as McDonald’s has the Big Mac, Jollibee has Spicy Chickenjoy – a piece of fried chicken that’s crispy and spicy on the outside and comes with a side of spaghetti, all covered in tomato sauce and topped with sausage slices and ground beef. It sounds like a recipe that a child would come up with, but perhaps that’s the point – a flavourbomb combination of cheap comfort foods. Chickenjoy is Jollibee’s best-selling product in every country in which it has a presence.
Voices: How A Great Singer Can Change Your Life
Nick Coleman
Jonathan Cape
The chef's advice
Troy Payne, head chef at Abu Dhabi’s newest healthy eatery Sanderson’s in Al Seef Resort & Spa, says singles need to change their mindset about how they approach the supermarket.
“They feel like they can’t buy one cucumber,” he says. “But I can walk into a shop – I feed two people at home – and I’ll walk into a shop and I buy one cucumber, I’ll buy one onion.”
Mr Payne asks for the sticker to be placed directly on each item, rather than face the temptation of filling one of the two-kilogram capacity plastic bags on offer.
The chef also advises singletons not get too hung up on “organic”, particularly high-priced varieties that have been flown in from far-flung locales. Local produce is often grown sustainably, and far cheaper, he says.
The specs
Engine: 2.3-litre, turbo four-cylinder
Transmission: 10-speed auto
Power: 300hp
Torque: 420Nm
Price: Dh189,900
On sale: now
About Okadoc
Date started: Okadoc, 2018
Founder/CEO: Fodhil Benturquia
Based: Dubai, UAE
Sector: Healthcare
Size: (employees/revenue) 40 staff; undisclosed revenues recording “double-digit” monthly growth
Funding stage: Series B fundraising round to conclude in February
Investors: Undisclosed
LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
How much of your income do you need to save?
The more you save, the sooner you can retire. Tuan Phan, a board member of SimplyFI.com, says if you save just 5 per cent of your salary, you can expect to work for another 66 years before you are able to retire without too large a drop in income.
In other words, you will not save enough to retire comfortably. If you save 15 per cent, you can forward to another 43 working years. Up that to 40 per cent of your income, and your remaining working life drops to just 22 years. (see table)
Obviously, this is only a rough guide. How much you save will depend on variables, not least your salary and how much you already have in your pension pot. But it shows what you need to do to achieve financial independence.
TV (UAE time);
OSN Sports: from 10am
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Dr Amal Khalid Alias revealed a recent case of a woman with daughters, who specifically wanted a boy.
A semen analysis of the father showed abnormal sperm so the couple required IVF.
Out of 21 eggs collected, six were unused leaving 15 suitable for IVF.
A specific procedure was used, called intracytoplasmic sperm injection where a single sperm cell is inserted into the egg.
On day three of the process, 14 embryos were biopsied for gender selection.
The next day, a pre-implantation genetic report revealed four normal male embryos, three female and seven abnormal samples.
Day five of the treatment saw two male embryos transferred to the patient.
The woman recorded a positive pregnancy test two weeks later.
Tottenham's 10 biggest transfers (according to transfermarkt.com):
1). Moussa Sissokho - Newcastle United - £30 million (Dh143m): Flop
2). Roberto Soldado - Valencia - £25m: Flop
3). Erik Lamela - Roma - £25m: Jury still out
4). Son Heung-min - Bayer Leverkusen - £25m: Success
5). Darren Bent - Charlton Athletic - £21m: Flop
6). Vincent Janssen - AZ Alkmaar - £18m: Flop
7). David Bentley - Blackburn Rovers - £18m: Flop
8). Luka Modric - Dynamo Zagreb - £17m: Success
9). Paulinho - Corinthians - £16m: Flop
10). Mousa Dembele - Fulham - £16m: Success
The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
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WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Day 5, Dubai Test: At a glance
Moment of the day Given the problems Sri Lanka have had in recent times, it was apt the winning catch was taken by Dinesh Chandimal. He is one of seven different captains Sri Lanka have had in just the past two years. He leads in understated fashion, but by example. His century in the first innings of this series set the shock win in motion.
Stat of the day This was the ninth Test Pakistan have lost in their past 11 matches, a run that started when they lost the final match of their three-Test series against West Indies in Sharjah last year. They have not drawn a match in almost two years and 19 matches, since they were held by England at the Zayed Cricket Stadium in Abu Dhabi in 2015.
The verdict Mickey Arthur basically acknowledged he had erred by basing Pakistan’s gameplan around three seam bowlers and asking for pitches with plenty of grass in Abu Dhabi and Sharjah. Why would Pakistan want to change the method that has treated them so well on these grounds in the past 10 years? It is unlikely Misbah-ul-Haq would have made the same mistake.
How to increase your savings
- Have a plan for your savings.
- Decide on your emergency fund target and once that's achieved, assign your savings to another financial goal such as saving for a house or investing for retirement.
- Decide on a financial goal that is important to you and put your savings to work for you.
- It's important to have a purpose for your savings as it helps to keep you motivated to continue while also reducing the temptation to spend your savings.
- Carol Glynn, founder of Conscious Finance Coaching
COMPANY%20PROFILE
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