Trump's Crypto Reserve Plan Sparks Billion-Dollar Surge

Coin WorldWednesday, Mar 5, 2025 6:08 am ET

1min read

Billions in BTC, ETH, XRP Flowed to Exchanges After Trump’s Reserve Plans

In a significant development, billions of dollars worth of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and XRP, were sent to exchanges shortly after U.S. President Donald Trump revealed plans to include these assets as part of the country's strategic reserves. This move has sparked a wave of activity in the crypto market, with investors and traders reacting to the news.

Following Trump's announcement, XRP tokens and thousands of bitcoins were quickly transferred to exchanges. This surge in activity comes as the crypto market continues to grapple with a broader sell-off, with outflows hitting a record $2.9 billion last week, according to CoinShares' latest weekly report. The recent security breach at Bybit and a more assertive stance from the U.S. Federal Reserve have contributed to weakened investor confidence, spurring capital withdrawals.

In response to Trump's plans, the price of XRP exploded to nearly $3, with reserves on the Binance exchange spiking to 2.90 billion tokens from 2.72 billion. This surge in XRP's price and reserves can be attributed to the belief that the digital asset is well-positioned for regulatory clarity under the Trump administration. Additionally, the potential for a US spot XRP ETF has fueled investor demand for the asset.

Trump's announcement has also led to a significant increase in crypto prices, with the market cap growing over $300 billion. However, the rally has since fizzled amid skepticism surrounding the reserves plan. Despite the initial surge, Bitcoin and Ethereum have taken a hit, with outflows totaling $2.59 billion and $300 million, respectively, last week. This weakened market sentiment has been reflected in the decline of Bitcoin to a three-month low below $80,000.

While the broader crypto market has experienced a sell-off, some assets have defied the trend. sui led inflows, securing $15.5 million, while XRP followed with a $5 million inflow. This positive sentiment can be attributed to the belief that these assets are well-positioned for regulatory clarity and potential ETF approvals.

As the crypto market continues to evolve, investors and traders will be closely watching the

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.