Trump announced that the US Cryptocurrency Strategic Reserve will be centered around BTC and Ethereum, and will also include smaller and higher-risk Tokens such as Solana, XRP linked to Ripple, and Cardano.
Author: Ye Zhen
Source: Wall Street News
During the turbulent times in the cryptocurrency circle, Trump personally came to ‘put out the fire’.
On Sunday, US President Trump announced on his social media platform Truth Social that the US Cryptocurrency Strategic Reserve will be centered around BTC and Ethereum, and will also include smaller and riskier Tokens such as Solana, XRP linked to Ripple, and Cardano.
“The US Cryptocurrency reserves will be boosted in this key industry after years of corruption crackdown by the Biden administration,” Trump wrote, “I will ensure that the US becomes the global Cryptocurrency capital.”
As a result, the cryptocurrency market quickly rebounded. According to CoinMarketCap, as of the time of writing, BTC rose 9% to $93,969, Ethereum rose 13% to $2,516, Solana surged 24% to $174.64, Cardano skyrocketed 70% to $1.11, and XRP rose 34% to $2.93.
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Oskar Aslund, chief strategy officer at AKJ, a European encryption hedge fund broker, said: “It’s been an extraordinary day for currencies like Cardano. The strategic reserve is the holy grail of the encryption market, everything they can hope for, from some kind of experiment to the reserve currency of the United States.”
Before this round of rebound, the currency circle experienced a sharp decline. Since the inauguration of Trump, BTC has continued to decline. Analysis believes that investors are frustrated with the Trump administration’s failure to accelerate the implementation of some reforms he promised during his campaign.
In February, BTC monthly decline reached 18%, the largest single-month decline since June 2022. The decline intensified last week, with a drop of 7.2% to $78,226 on Friday, a 28% decline from the peak.
Trump’s latest statement, coupled with the expectation of the upcoming Cryptocurrency Summit, swept away the frustration of the cryptocurrency circle and reversed the recent downward trend of the market.
On March 7, the White House will hold its first Cryptocurrency Summit, during which Trump will deliver a speech. The summit will be hosted by Trump’s AI and Cryptocurrency czar David Sachs, with industry CEOs, founders, and investors in attendance.
Trump first proposed the idea of a ‘national strategic BTC reserve’ in his keynote speech at the annual BTC conference in July last year, but it is not clear how the US government will establish the reserve at present.
Analysts point out that one possible way to build reserves is to have the US government retain the BTC confiscated from cybercriminals and dark web markets. According to the data from the encryption company 21.co, the US government holds over 180,000 BTC, valued at approximately $18 billion at current market prices.
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