Trump Crypto Reserve Announcement Sparks Bitcoin Surge to 95000 and Market Volatility
1min read President Donald Trump’s announcement of a U.S. government-backed Crypto Strategic Reserve has sparked a significant debate within the financial and crypto industries. The reserve, which includes major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), represents a major shift in how digital assets could be integrated into national financial strategies. The move has elicited a range of reactions, from praise for institutional recognition to skepticism over volatility and government involvement.
The announcement triggered a short-term rally in the crypto market, with Bitcoin spiking to $95,000 before falling below $86,000. Other cryptocurrencies like XRP, Solana, and Cardano surged as much as 60% before retreating. The market added over $300 billion in market cap before shedding most gains. The sharp swings highlight the speculative nature of cryptocurrencies and raise concerns about the long-term effects of government involvement. Questions around funding sources, acquisition methods, and legislative hurdles added to market volatility.
The crypto industry responded with both excitement and skepticism. Some see this as a historic move, while others warn of government overreach. Isaac Joshua, CEO of Gems Launchpad, supports a diversified approach, stating that a multi-asset reserve offers stability, liquidity, and broader functionality. He emphasizes that structured diversification enhances financial viability and that crypto ecosystems should embrace structured diversification within unified chains, ensuring assets complement rather than compete. However, he warns that poor oversight risks market instability and manipulation, and success depends on strategic asset selection, institutional collaboration, and clear regulation.
Trump’s embrace of crypto starkly contrasts the previous administration’s enforcement-heavy approach. Given strong crypto industry backing in the 2024 election, some see this as a political maneuver rather than an economic strategy. Motti Peer, Chairman and co-CEO of ReBlonde, suggests that integrating multiple cryptocurrencies into national reserves acknowledges the growing fiscal relevance of digital assets. However, he highlights crypto’s unprecedented risks, including volatility and decentralization, which raise market stability and regulatory oversight concerns. Transparency concerns also persist, with critics arguing that reserve assets could benefit major crypto donors to Trump’s campaign, raising questions of favoritism.
If the U.S. proceeds with a crypto reserve, it will be the first major economy to do so. 