Following an unexpected announcement from President Donald Trump, cryptocurrency prices surged as he revealed plans for the U.S. government to acquire and maintain a range of digital assets in a strategic reserve fund. This move underscores Trump’s increasing efforts to gauge public support through the volatility of cryptocurrency prices.
Trump took to social media to share his administration’s intentions of establishing a “Crypto Strategic Reserve,” consisting of lesser-known cryptocurrencies like XRP, Solana, and Cardano. Subsequently, he also mentioned including Bitcoin and Ethereum, the two most prominent cryptocurrencies, in this reserve.
The news provided a boost to crypto prices, with Bitcoin rebounding to around $90,000 after a recent drop below $80,000. XRP, Solana, and Cardano experienced significant price surges following Trump’s announcement, although these gains tapered off slightly by Monday morning.
During his campaign, Trump promised to back a “strategic national bitcoin” stockpile, which would incorporate Bitcoin seized by the U.S. government in law enforcement actions. This recent announcement marks the first time he has advocated for the inclusion of other cryptocurrency types in government holdings.
Further details, such as the quantities of each cryptocurrency Trump proposed for government possession, the acquisition process, and the potential inclusion of additional cryptocurrencies, were not immediately disclosed by the White House.
Eric Trump, the president’s son, expressed satisfaction at the price increases, citing his social media recommendations to invest in crypto assets. “Hopefully, I made someone’s life just a little bit better,” he shared online.
Describing himself as a supporter of the crypto industry, Trump critiqued the “years of corrupt attacks by the Biden administration” that had targeted the sector. Since taking office, Trump has implemented measures to bolster the cryptocurrency market, including halting prominent enforcement actions by the Securities and Exchange Commission.
Despite an initial surge in crypto prices following Trump’s election victory last year, prices have since declined, prompting questions about his influence. Notably, Trump faced backlash, including from allies in the crypto community, for launching a personal meme coin before assuming office, which subsequently lost value. Additional setbacks, such as the decline of meme coins associated with First Lady Melania Trump and Argentine President Javier Milei, as well as a significant hack of a major cryptocurrency exchange allegedly orchestrated by North Korea, have tempered enthusiasm for crypto.
The decision to diversify the government’s crypto holdings beyond Bitcoin may encounter resistance within certain segments of the deeply divided cryptocurrency industry. Bitcoin, as the oldest and most widely adopted cryptocurrency, constitutes over half of the global crypto market capitalization.
Supporters of a government-held crypto reserve argue that it could enhance diversification and strengthen the country’s financial security.
Digital currencies are increasingly being considered as potential assets for diversifying investment holdings and as a means to hedge against financial risks. However, critics argue that the volatile nature of cryptocurrencies renders them a less than ideal choice as a reserve asset. In a related development, President Trump revealed on Sunday that he plans to address industry leaders at a White House “Crypto Summit” scheduled for Friday.
