In a bid to “make sure the U.S. is the Crypto Capital of the World,” U.S. President Donald Trump has taken to social media to announce the names of five new digital assets to be included in a new U.S. strategic reserve for Cryptocurrencies.
He announced in a Truth post that the Presidential Working Group directed by the president’s executive order on digital assets — that was signed into action in January — had gone ahead in stockpiling digital currencies such as XR P, SOL, ADA for future use.
In a follow-up post about an hour later, he announced the inclusion of BTC and ETH, which by afternoon already triggered a market surge for these currencies, and the market value had increased substantially.
These digital currencies that had been in a slump prior to the announcement immediately rose up. Bitcoin (BTC) was up more than 11%, rising from $83,900 to $94,164. Ethereum (ETH) had a 13% increase, rising from $2,226.55 to $2,516, while other coins like Cardano’s ADA surged more than 60%, and Solana’s SOL jumped 22%. Ripple’s XR P also increased by 33%.
According to a report made by Axios, right after the announcement, there was a $300 billion rally in the global crypto market that reversed a recent slump and highlighted Trump’s influence in the Crypto industry.
Trump’s establishment of a “strategic reserve” seems to be a potential way to stabilize the crypto market as well as strengthen the U.S. leadership in the global digital asset space, where it can possibly compete with other nations’ moves in the global crypto market.
President Trump’s promise to make the U.S. the “Crypto Capital of the world” probably resonated with the crypto community, as it no doubt comes with some level of legitimacy. It is no wonder that the announcement caused a market surge.
But this comes as a shock as Trump, who in his first term as the president of the United States, separated his administration from the Crypto community, especially by branding Bitcoin a “scam.”
Former President Joe Biden, who took on the mantle from him further estranged the relationship the U.S. had with Crypto communities, introducing an executive order that addressed the lack of framework as at that time, which came off as an attack towards people who actively engaged in the market.
Some industry supporters and experts have expressed concerns about the plan, including potential ethical issues and the lack of detailed implementation, which could affect long-term market stability.
President Trump’s attempt of a strategic reserve to “elevate this critical industry after years of corrupt attacks by the Biden Administration,” is also deemed applaudable, according to many industry researchers.
There’s, however, some level of uncertainty as regards whether the surge will remain for a long time, as well as the practicality of the strategic reserve remaining unclear.
David Sacks, the White House AI and Crypto Expert, said more details will be revealed at the White House Crypto Summit on Friday, March 7, 2025.
