U.S. President Donald Trump took to social media on Sunday to reveal the names of five digital assets he intends to include in a new U.S. strategic reserve of cryptocurrencies, causing a surge in their market value.
In a post on Truth Social, Trump stated that his executive order on digital assets from January would establish a stockpile of cryptocurrencies, including bitcoin, ether, XRP, solana, and cardano. These specific assets had not been publicly disclosed before his announcement.
Over an hour later, Trump followed up with another post, saying, “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve.”
Following Trump’s announcement, bitcoin, the world’s most valuable cryptocurrency, saw an increase of over 11%, reaching $94,164 on Sunday afternoon. Ether, the second-largest cryptocurrency, rose by approximately 13% to $2,516.
According to CoinGecko, a firm specializing in cryptocurrency data and analysis, the total market capitalization of cryptocurrencies jumped by around 10%, equating to a gain of more than $300 billion in the hours following Trump’s post.
XRP is the token associated with cryptocurrency company Ripple Labs, which recently backed a super PAC aimed at influencing congressional elections in favor of pro-crypto policies.
“This move signals a shift toward active participation in the crypto economy by the U.S. government,” said Federico Brokate, head of U.S. business at 21Shares, a digital assets investment management firm. “It has the potential to accelerate institutional adoption, provide greater regulatory clarity, and strengthen the U.S.’s leadership in digital asset innovation.”
James Butterfill, head of research at asset management firm CoinShares, expressed surprise at the inclusion of digital assets beyond bitcoin in the reserve.
“Unlike bitcoin…these assets are more akin to tech investments,” Butterfill said. “The announcement suggests a more patriotic stance toward the broader crypto technology space, with little regard for the fundamental qualities of these assets.”
Donald Trump To Set Up Cryptocurrency Reserve (Photo: Getty Images)Trump has garnered strong support from the cryptocurrency industry during his 2024 presidential campaign and has quickly aligned with their policy objectives. On Friday, he is set to host the first-ever White House Crypto Summit, and his family has also introduced its own digital tokens.
Under the previous administration of Democrat Joe Biden, regulators took a stricter approach to the cryptocurrency sector, implementing measures aimed at protecting American consumers from fraud and money laundering.
In contrast, under Trump, the Securities and Exchange Commission (SEC) has rolled back investigations into several cryptocurrency firms and dismissed a lawsuit against Coinbase, the largest crypto exchange in the United States.
However, despite initial enthusiasm, cryptocurrency prices have recently experienced sharp declines, with several leading digital assets losing nearly all the gains made after Trump’s election victory ignited optimism in the industry.
Market analysts suggest that a significant catalyst is needed to drive prices higher, such as indications that the U.S. Federal Reserve will cut interest rates or the introduction of a clear pro-crypto regulatory framework by the Trump administration.
Geoff Kendrick, an analyst at Standard Chartered, has projected that bitcoin could reach $500,000 before Trump’s term concludes, surpassing its previous record high of $109,071.
Regulatory filings in the U.S. indicate that while hedge funds continue to be the primary buyers of cryptocurrency, banks and sovereign wealth funds have also started making acquisitions.
Quarterly reports reveal that asset managers increased their allocations to U.S. exchange-traded funds (ETFs) linked to the price of spot bitcoin during the fourth quarter of 2024.
Experts remain divided on whether the establishment of the cryptocurrency reserve would require congressional approval. Some argue that the U.S. Treasury’s Exchange Stabilization Fund—traditionally used to buy or sell foreign currencies—could be leveraged to create the reserve without legislative action.
Trump’s crypto advisory group had previously explored the possibility of funding the reserve using cryptocurrencies seized in law enforcement operations.
