The prices of major cryptocurrencies surged on Sunday after US President Donald Trump announced his support for a new strategic reserve of digital assets, naming Bitcoin, Ethereum, XRP, Solana, and Cardano as key components.
Trump, in a post on Truth Social, said he had signed an order directing the formation of a Crypto Strategic Reserve, which he claimed would help position the US as “the Crypto Capital of the World.” The move led to an immediate rally in the crypto market, with the five named coins witnessing sharp price jumps.
The former president had previously been a critic of digital currencies, once calling Bitcoin a “scam” in a 2021 interview.
However, his stance has shifted significantly in recent months, with both Trump and his wife, Melania Trump, launching their own digital tokens.
Market Reaction, Uncertainty Over Implementation
The announcement caused XRP, Solana, and Cardano to rise by as much as 62% within hours, while Bitcoin and Ethereum gained more than 10% each. The total cryptocurrency market added nearly $300 billion in value, according to data from CoinGecko.
Bitcoin, the world’s largest cryptocurrency, was trading at $94,164 on Sunday afternoon, while Ethereum reached $2,516.
Despite the market optimism, it remains unclear how the proposed reserve would function. The executive order signed in January tasked a presidential working group with evaluating the creation of a national stockpile of digital assets, potentially utilizing cryptocurrencies seized by US law enforcement agencies. However, experts remain divided on whether such a reserve can be formed without congressional approval.
James Butterfill, head of research at CoinShares, noted that the inclusion of assets beyond Bitcoin was surprising. “Unlike Bitcoin, which has often been viewed as a digital equivalent to gold, these other assets are more akin to technology investments,” he said.
Federico Brokate, head of US business at 21Shares, said the move could mark a shift in government policy towards digital assets. “This signals a willingness to actively participate in the crypto economy, which may accelerate institutional adoption and provide greater regulatory clarity,” he said.
Trump’s Pro-Crypto Stance and Policy Changes
Trump has actively sought the support of the crypto industry during his 2024 campaign, contrasting sharply with his predecessor, Joe Biden, whose administration cracked down on the sector due to concerns over fraud and money laundering.
Under Biden, the Securities and Exchange Commission (SEC) pursued regulatory actions against major cryptocurrency firms, including a lawsuit against Coinbase, the largest crypto exchange in the US. Since taking office, Trump has reversed some of these policies, with the SEC withdrawing investigations into several crypto companies.
