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Cryptocurrency markets experienced a significant upswing on Sunday following an announcement from President Donald Trump regarding the establishment of a U.S. strategic crypto reserve. This reserve, as detailed in a post on Truth Social, will encompass a variety of digital currencies, including bitcoin, ether, XRP, Solana’s SOL token, and Cardano’s ADA.
In his statement, Trump emphasized the intent behind the reserve, asserting that, “A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration.” He mentioned that his Executive Order on Digital Assets had directed the Presidential Working Group to advance the establishment of this strategic reserve, underscoring his ambition for the United States to become the preeminent hub for cryptocurrency. He further noted that “BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve” in a separate follow-up post.
The immediate market reaction was remarkable, with XRP witnessing a 33% increase, while Solana’s token rose by 22%. Cardano experienced an impressive surge of over 60%. Bitcoin and ether also reflected this positive sentiment, escalating by 8% and 11%, respectively.
This announcement marks a pivotal moment in Trump’s narrative around cryptocurrencies, as it shifts from his previous reference to a “stockpile” to a more dynamic concept of a “reserve.” While a stockpile would imply a static accumulation of crypto assets without further purchases, a reserve signals an ongoing commitment to acquire digital currencies as part of a national strategy.
Trump had initially floated the concept of a national bitcoin stockpile during his address at Bitcoin 2024 in Nashville last summer, where he sought to engage the cryptocurrency community. Alongside him, Wyoming Senator Cynthia Lummis had introduced her own proposal for a strategic bitcoin reserve at that conference.
Following Trump’s re-election, interest in creating a strategic bitcoin reserve intensified, propelling the price of bitcoin to new heights. However, this momentum appeared to stall after he released an executive order on digital assets in late January. This order sought to evaluate the feasibility of establishing a national digital asset stockpile, potentially sourced from cryptocurrencies seized by law enforcement, among other activities.
The initial reception from the crypto sector was cautious, as stakeholders were primarily anticipating a focus on bitcoin, while the broader term “digital assets” left ambiguity concerning the inclusion of other cryptocurrencies.
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In the interim, bitcoin had entered a period of consolidation, wrapping up its worst month since 2022, largely attributed to macroeconomic uncertainties and the lack of significant crypto-specific catalysts.
Looking ahead, Trump is set to convene the first White House Crypto Summit on Friday. Investors and crypto enthusiasts alike are keenly awaiting further details regarding the future trajectory of the proposed reserve plans.
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