Cryptocurrency prices surged in response to a surprising announcement by President Donald Trump, who revealed his intention for the U.S. government to acquire and maintain a diverse range of digital assets in a strategic reserve fund. This move sheds light on Trump’s increasing efforts to gauge his public support through the volatile cryptocurrency market.
In a social media post on Sunday, Trump disclosed plans to establish a “Crypto Strategic Reserve” that would encompass lesser-known cryptocurrencies such as XRP, Solana, and Cardano. He later confirmed that the reserve would also include the more widely recognized Bitcoin and Ether. This announcement helped crypto prices recover temporarily following recent declines, with Bitcoin trading around $90,000 on Monday morning after dropping below $80,000 the previous week. XRP, Solana, and Cardano experienced significant price surges post-Trump’s statement, followed by a gradual decrease through Monday morning.
During his campaign, Trump promised to back a “strategic national bitcoin” reserve, which would include Bitcoin seized in previous law enforcement actions. Sunday marked the first time he advocated for the government’s possession of other cryptocurrencies. The White House has yet to provide further details, including the specific amounts of each cryptocurrency Trump proposes for the U.S. to hold, the acquisition process, and the potential inclusion of additional cryptocurrencies.
Eric Trump, the president’s son, expressed satisfaction with the price hikes, citing his social media recommendations to invest in crypto assets. “Hopefully, I made someone’s life just a little bit better,” he shared online.
Presenting himself as a champion of the crypto industry, Trump accused the Biden administration of years of unjust attacks on the sector. Many in the crypto industry felt unfairly targeted by the previous administration and supported Trump’s election campaign. Since taking office, Trump has made several moves to bolster crypto, such as halting prominent Securities and Exchange Commission enforcement actions.
Following Trump’s election victory last year, crypto prices soared, with Bitcoin surpassing $100,000 in early December. Trump claimed credit for this milestone on social media. However, prices have since declined, and Trump faced criticism, even from his allies in the crypto sector, for his involvement in a meme coin that plummeted in value. The collapse of meme coins associated with First Lady Melania Trump and Argentine President Javier Milei, along with a major cryptocurrency exchange hack attributed to North Korea by the FBI, dampened enthusiasm for crypto.
The broader inclusion of cryptocurrencies beyond Bitcoin is expected to encounter resistance from some sectors of the divided crypto industry, as Bitcoin remains the most established and widely adopted cryptocurrency, constituting over half of the global crypto market cap.
Supporters of a government-held crypto reserve argue that it could aid in diversifying assets and strengthening the country’s financial resilience.
Craft poems about public assets and safeguard against monetary perils. Skeptics argue that the erratic nature of digital currencies renders them unsuitable as a backup resource. Besides revealing his plans on Sunday, Trump has additionally disclosed his intent to convene with key figures in the sector this coming Friday at a “Crypto Summit” held at the White House.
