Following Donald Trump’s announcement regarding the establishment of a new US strategic crypto reserve, cryptocurrency prices have surged. He expressed a desire for Bitcoin and other lesser-known tokens to be included in this reserve.
According to Trump, his January executive order focused on digital assets would pave the way for accumulating various currencies, including Bitcoin, Ethereum, XRP, Solana, and Cardano (ADA).
The specific currencies had not been made public prior to this outbreak of news.
The American president stated on Truth Social: “A US Crypto Reserve will uplift this vital industry after years of unethical attacks by the Biden Administration, which prompted my Executive Order on Digital Assets to direct the Presidential Working Group to advance a Crypto Strategic Reserve that comprises XRP, SOL, and ADA.”
“I will ensure that the US becomes the Crypto Capital of the World.”
“Of course, BTC and ETH, along with other valued cryptocurrencies, will be central to the Reserve,” he added in a subsequent post. “I’m also a fan of Bitcoin and Ethereum!”
In response to the announcement, Bitcoin, the largest cryptocurrency by market capitalization, increased over 11% to $94,164.
Ethereum, the second-largest cryptocurrency, rose approximately 13% to $2,516.
XRP experienced a significant surge of 33%, while Solana’s token saw an increase of 25%. Cardano’s coin skyrocketed by more than 60%.
Bitcoin’s value is now about 20% higher compared to its lows from last week.
The overall cryptocurrency market surged about 10%, gaining over $300 billion (£238 billion) following the announcement as per data from cryptocurrency analysis firm CoinGecko.
This marks the first occasion Mr. Trump has clarified his endorsement of a crypto “reserve” as opposed to a “stockpile.” The former involves actively purchasing cryptocurrency regularly, whereas a stockpile would not divest any of the crypto assets presently held by the US government.
Mr. Trump is set to host the inaugural White House Crypto Summit on Friday, and market watchers will be keenly observing for further insights regarding the reserve plans.
Additionally, his family has ventured into creating their own tokens, including his wife Melania.
Read more from Sky News:
TikTok and Reddit under investigation over children’s data usage
Second privately funded spacecraft successfully lands on the moon
Last summer, Mr. Trump first proposed the concept of a Bitcoin stockpile, which would “retain 100% of all the Bitcoin the US government currently possesses or acquires in the future,” during a significant industry event, Bitcoin 2024, in Nashville.
After his re-election bid in November, calls for a strategic Bitcoin reserve grew, contributing to an increase in the flagship cryptocurrency’s value to unprecedented heights.
During the administration of his Democratic predecessor, Joe Biden, there was a regulatory crackdown on the industry aimed at shielding Americans from fraud and money laundering.
Conversely, under Mr. Trump, the Securities and Exchange Commission has halted investigations into numerous crypto companies and has withdrawn a lawsuit against Coinbase, the largest cryptocurrency exchange in the US.
However, in recent weeks, the prices of cryptocurrencies have dipped sharply, with many major digital currencies losing most of the gains accrued after Mr. Trump’s electoral victory sparked excitement across the market.
