The announcement made by U.S. President Donald Trump about the expected inclusion of five digital assets in a new U.S. crypto strategic reserve has sent shockwaves through the market. Trump revealed the names of the digital assets he anticipates including in the reserve, causing a significant spike in their market value.
Taking to social media, Trump disclosed that his January executive order pertaining to digital assets would lead to the establishment of a reserve that would stockpile various currencies, including bitcoin. Notably, the names of these assets had not been publicly disclosed before this announcement. The market reacted swiftly to this news, with the assets experiencing an increase in value ranging from 8% to 62% during Sunday’s trading session.
Trump emphasized that his executive order had instructed the Presidential Working Group to progress with the creation of a Crypto Strategic Reserve that would encompass digital assets such as XRP, SOL, and ADA. He further asserted his intention to position the United States as the global hub for cryptocurrencies. In a subsequent social media post, Trump reiterated the significance of including bitcoin (BTC) and ether (ETH) in the strategic reserve, recognizing their value in the cryptocurrency space.
Following the announcement, bitcoin, the world’s largest cryptocurrency by market capitalization, saw an increase of approximately 8% to reach a value of $90,828. Ether, the second largest cryptocurrency, also experienced a notable surge, rising by 8.3% to $2,409.
Trump’s pro-crypto stance has garnered support from the cryptocurrency industry as he embarks on his 2024 election campaign. Notably, the previous administration, led by Democrat Joe Biden, had taken a stringent regulatory approach towards the industry in an effort to safeguard consumers from fraud and money laundering activities.
Despite the initial excitement triggered by Trump’s victory in the 2020 election, recent weeks have witnessed a significant downturn in cryptocurrency prices, with many prominent digital assets giving up gains accumulated during the post-election fervor.
Market analysts suggest that for the cryptocurrency market to witness a sustained upward movement, clear signals such as potential interest rate cuts by the U.S. Federal Reserve or a well-defined pro-crypto regulatory framework from the Trump administration are essential.
In an effort to address these issues and foster dialogue within the industry, Trump is scheduled to host the inaugural White House Crypto Summit on Friday. Additionally, Trump’s family has ventured into the realm of cryptocurrency by launching their own digital coins, further signaling their commitment to this emerging sector.
The exact structure and operation of the new crypto strategic reserve remain ambiguous. While some experts argue that congressional approval may be required to establish the reserve, others posit that it could be set up using the U.S. Treasury’s Exchange Stabilization Fund, which has the authority to engage in the purchase and sale of foreign currencies.
Moreover, Trump’s crypto team has indicated a potential plan to explore the utilization of cryptocurrencies confiscated in law enforcement operations to form the
