Coinspeaker
Trump’s Announcement of Cryptocurrencies in Reserve Drives Market Rally
Trump reveals plans for a U.S. cryptocurrency reserve, featuring Bitcoin, Ethereum, XRP, Solana, and Cardano, sparking market growth.
U.S. President Donald Trump took to social media on March 2nd to disclose the names of five digital currencies he plans to incorporate into a new U.S. strategic cryptocurrency reserve, leading to a spike in their market values.
In his post on Truth Social, Trump stated that his January executive order on digital assets would establish a reserve featuring Bitcoin, Ether, XRP, Solana, and cardano–assets that had not been revealed until now.
Over an hour after his initial post, Trump clarified, saying, “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve.”
After the announcement, Bitcoin saw a rise of over 11%, reaching $94,164 by Sunday afternoon. Ethereum rose by approximately 13%, hitting $2,516. Currently, Bitcoin and Ethereum are trading at $88,720 and $2,183, respectively.
In the hours following Trump’s announcement, the total cryptocurrency market grew by about 10%, adding over $300 billion in value.
Experts React: Trump’s Crypto Reserve and Shifting Focus
Federico Brokate, the head of U.S. business at 21Shares, believes this move marks a big shift, showing that the U.S. government is finally jumping into the crypto game.
He thinks it could spark faster institutional adoption, bring more regulatory clarity, and solidify the U.S.’s role as a leader in digital asset innovation.
James Butterfill, head of research at CoinShares, was surprised by Trump’s inclusion of assets beyond Bitcoin.
He pointed out that unlike Bitcoin, these assets feel more like tech investments. Butterfill suggests the announcement signals a shift toward supporting the broader crypto tech space, without diving too deep into the fundamental aspects of the assets themselves.
Trump’s Growing Influence on the Crypto Market
Trump’s 2024 campaign has gained strong crypto support, with him backing industry priorities. He’s hosting the first White House Crypto Summit on March 7th and has even launched family-backed coins.
Unlike Biden, who cracked down on crypto, Trump’s administration has eased regulations, including dropping a lawsuit against Coinbase. However, recent price drops have left the market looking for a spark, like potential rate cuts from the Fed or clearer pro-crypto policies from Trump.
Analyst Geoff Kendrick predicts Bitcoin could reach $500,000 before Trump finishes his term. Meanwhile, banks and sovereign funds are joining hedge funds in crypto investments, with ETFs linked to Bitcoin seeing growing interest.
Debate continues over whether Congress needs to act to set up a crypto reserve, though some suggest the Treasury could manage it.
Trump’s Announcement of Cryptocurrencies in Reserve Drives Market Rally
