Trump's Crypto Reserve: Bitcoin Surges 60% as Market Adds $300B
1min read President Donald Trump has announced plans to establish a U.S. strategic cryptocurrency reserve, marking a significant shift in the government's stance towards digital assets. The reserve will include five major cryptocurrencies: Bitcoin, Ethereum, XRP, Solana, and Cardano. The news, shared on Truth Social on Sunday, has sparked immediate market reactions, with prices of the mentioned cryptocurrencies surging between 10% and 60%.
Bitcoin, the world's largest cryptocurrency, jumped to $94,164, while Ethereum rose to $2,516 following the announcement. XRP experienced the most dramatic surge, increasing by 33%. Solana's token rose by 25%, and Cardano's coin climbed more than 60%. The total cryptocurrency market added over $300 billion in value within hours of Trump's announcement, reflecting the market's positive response to potential government involvement in the crypto sector.
Trump made the announcement through two separate posts. The first outlined the inclusion of XRP, Solana, and Cardano, while a follow-up post confirmed that Bitcoin and Ethereum would be "at the heart of the Reserve." This move represents a shift from Trump's earlier stance, as he had only discussed the possibility of a Bitcoin stockpile during the Bitcoin 2024 conference in Nashville last summer.
The administration's approach differs from previous government positions. Under Biden's presidency, regulators had taken a stricter stance on cryptocurrency oversight and regulation. Recent changes in regulatory oversight reflect the new direction, with the Securities and Exchange Commission withdrawing several investigations into crypto companies and dropping a lawsuit against coinbase, the largest U.S. crypto exchange.
Trump plans to host the first White House Crypto Summit on Friday, which is expected to provide more details about the administration's plans for the strategic reserve. Questions remain about the legal framework for establishing the reserve, and some experts suggest it could be created through the U.S. Treasury's Exchange Stabilization Fund, which has authority to purchase foreign currencies.
The administration is considering using cryptocurrencies seized in law enforcement actions as part of the reserve, which could provide an initial supply of digital assets. Market analysts have responded with varying predictions, with Standard Chartered's Geoff Kendrick projecting that Bitcoin could reach $500,000 before Trump leaves office.