Crypto Prices Soar as Trump Highlights Bitcoin and Others for US Strategic Reserve | Financial News
Following Donald Trump’s announcement regarding a new strategic crypto reserve in the US, cryptocurrency prices have surged. He expressed his desire for Bitcoin and other lesser-known tokens to be included in this reserve.
Trump indicated that his executive order from January on digital assets would lead to a reserve comprising currencies such as Bitcoin, Ethereum, XRP, Solana, and Cardano (ADA).
These names were disclosed for the first time.
The American president shared on Truth Social: “A US Crypto Reserve will enhance this vital industry after enduring years of unethical attacks by the Biden Administration, which is why my Executive Order on Digital Assets instructed the Presidential Working Group to advance a Crypto Strategic Reserve that incorporates XRP, SOL, and ADA.”
“I am committed to ensuring the US becomes the Crypto Capital of the World.”
“Naturally, BTC and ETH, as other significant cryptocurrencies, will be central to the Reserve,” he added in a subsequent post. “I have a fondness for both Bitcoin and Ethereum!”
Following the announcement on Sunday, Bitcoin, the largest cryptocurrency by market cap, climbed over 11% reaching $94,164.
Ethereum, the second-largest cryptocurrency, increased by approximately 13%, trading at $2,516.
XRP skyrocketed by 33%, while Solana’s token surged 25%. Cardano’s coin experienced a remarkable rise of over 60%.
Bitcoin saw an increase of more than 20% compared to the lows of the previous week.
US President Donald Trump signed an executive order on cryptocurrencies in January. Pic: Reuters
The entire cryptocurrency market experienced a rise of about 10%, amounting to over $300 billion (£238 billion), shortly after the announcement, as reported by cryptocurrency data and analysis firm CoinGecko.
This marks the first instance where Mr. Trump has explicitly voiced support for a crypto “reserve” instead of a “stockpile”. The former implies regular purchasing of crypto, while a stockpile suggests that the US government would retain its current holdings without selling.
Mr. Trump is set to host the inaugural White House Crypto Summit on Friday, with investors keenly anticipating further information on the reserve plans.
Additionally, his family has launched their own coins, including those by his wife Melania.
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Mr. Trump initially proposed the concept of a Bitcoin stockpile, which would involve retaining “100% of all the Bitcoin the US government currently possesses or acquires in the future,” during the major industry conference Bitcoin 2024 in Nashville last summer.
Following his re-election victory in November, there were renewed calls for a strategic Bitcoin reserve, contributing to the surge in the price of the flagship cryptocurrency to unprecedented heights.
Under the administration of his Democratic predecessor, Joe Biden, there was a crackdown on the industry aimed at safeguarding Americans from fraud and money laundering.
During Mr. Trump’s tenure, the Securities and Exchange Commission reversed its investigations into various crypto companies and dismissed a lawsuit against Coinbase, the largest crypto exchange in the US.
However, in recent weeks, cryptocurrency prices have sharply declined, with some leading digital currencies losing nearly all gains following Mr. Trump’s election win, which initially sparked optimism across the industry.
