Main Insights
- Former President Donald Trump has revealed plans to create a U.S. strategic reserve of cryptocurrencies.
- He identified Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) as critical reserve assets.
- In response to Trump’s comments, cryptocurrency prices surged, with BTC rising over 10% and surpassing $92,000 once more.
Trump has announced the development of a U.S. strategic cryptocurrency reserve featuring Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).
His announcement led to a significant rise in cryptocurrency values and triggered state-level initiatives for Bitcoin reserves.
With support from 24 states, the movement toward a federal Bitcoin reserve is gaining traction, reflecting Congress’s increasing openness to Bitcoin.
Trump Unveils U.S. Crypto Reserve
U.S. President Donald Trump disclosed on Truth Social that the government plans to establish a strategic reserve of cryptocurrencies.
This announcement, following his January executive order on digital assets, resulted in a spike in cryptocurrency prices.
As of this writing, Bitcoin had surged over 10% to $92,459, while Ethereum increased by 11% to $2,456.
Trump further emphasized that BTC and ETH would be at the core of the reserve, reinforcing the administration’s goal of establishing U.S. leadership in digital assets.
“And, of course, BTC and ETH, being other valuable cryptocurrencies, will form the nucleus of the Reserve. I have a strong fondness for Bitcoin and Ethereum!,” Trump remarked in a subsequent post.
Market’s Positive Response
As mentioned, Bitcoin and Ethereum experienced double-digit increases right after Trump’s posts on his social platform. Other cryptocurrencies highlighted by the President also enjoyed a notable rise.
Solana surged by 24% to $174.37, with Cardano observing a 61% increase, pushing ADA above $1. The total global crypto market capitalization reached $3.12 trillion, marking an 11% rise compared to the previous day.
Ripple’s XRP rose by over 30% to $2.86. Earlier in February, XRP was priced above $3, but it had since dipped by 35%, potentially closing the month below $2—the lowest mark for the year.
This decline created uncertainty among XRP holders amid heightened market fear. With prevailing bearish trends, XRP faced challenges in regaining earlier momentum. However, Trump’s initiative may help restore confidence in XRP.
Legislators Pushing for Reserve Initiative
Efforts to establish State-level Bitcoin reserves are gaining momentum, with nearly half of U.S. States introducing legislation to invest in BTC.
Inspired by Trump’s national Bitcoin reserve proposal, lawmakers in 24 states have proposed bills to allocate public funding toward Bitcoin or related products.
Nonetheless, resistance still exists, with at least six States turning down Bitcoin reserve proposals due to concerns regarding financial risks and taxpayer funds.
Despite these obstacles, 18 States continue to pursue Bitcoin reserve legislation, with Arizona and Oklahoma leading the charge. The national dialogue is also evolving.
The 2024 elections have brought more Bitcoin-friendly members to Congress, enhancing the prospects for a federal Bitcoin reserve.
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