Crypto Prices Soar After Trump’s Strategic Reserve Announcement
Bitcoin and other major cryptocurrencies experienced a significant rally following U.S. President Donald Trump’s announcement of a new U.S. strategic reserve that will include key digital assets. The reserve will feature Bitcoin (BTC), Ether (ETH), XRP, Solana (SOL), and Cardano (ADA), triggering a strong market reaction.
Bitcoin and Altcoins See Major Gains
By Monday, Bitcoin had surged over 20% from its recent lows, climbing from $78,273 on Friday to approximately $94,154. Ether followed suit with a 20% increase, reaching $2,482. Other cryptocurrencies also recorded sharp gains:
- XRP: Up 38%
- Solana (SOL): Rose by 20%
- Cardano (ADA): Jumped an impressive 78%
This announcement provided a much-needed boost to the cryptocurrency market, which had been in a bearish phase since mid-January. Chris Weston, head of research at Australian brokerage firm Pepperstone, described the news as “a positive shock to the crypto scene and a crucial catalyst for reversing the market’s downward trend.”
White House Crypto Summit and Funding Concerns
The rally is expected to continue leading up to the first White House Crypto Summit, scheduled for Friday. President Trump will host the event, inviting key figures from the crypto industry, including founders, CEOs, and investors.
However, concerns remain over how the U.S. will fund this strategic reserve. Some analysts speculate that the government could use funds from seized cryptocurrencies in law enforcement actions rather than taxpayer money. If this is the case, the impact might be less bullish, as it would involve a transfer of assets rather than fresh capital inflows.
A New Era for U.S. Crypto Policy
Trump’s decision to establish a strategic crypto reserve signals a major shift in U.S. government policy. The administration appears to be embracing digital assets, aiming to position the United States as the “Crypto Capital of the World.” Federico Brokate, head of U.S. business at 21Shares, noted that this move could accelerate institutional adoption, enhance regulatory clarity, and solidify the U.S. as a leader in blockchain innovation.
Additionally, the administration has taken a firm stance against a government-controlled digital dollar, blocking the U.S. Federal Reserve from developing a central bank digital currency (CBDC). This decision prevents the government from introducing a direct competitor to privately issued stablecoins.
