Former U.S. President Donald Trump announced on March 2 the establishment of a U.S. strategic crypto reserve comprised of five major cryptocurrencies: Bitcoin, Ethereum, Ripple, Solana, and Cardano. This move positions the U.S. as a direct participant in the digital asset market, potentially influencing global policy, adoption rates, and institutional investment.
Trump shared his vision on Truth Social, stating, “I will make sure the U.S. is the Crypto Capital of the World.”
Market Reacts to Trump’s Announcement
Following Trump’s announcement, the prices of several cryptocurrencies experienced a surge within hours. Ripple (XRP) rose by 32%, Solana (SOL) increased by 23%, and Cardano (ADA) saw a significant jump of 63%. However, an initial moment of confusion arose as Trump’s initial post did not specifically mention Bitcoin or Ethereum. This led to speculation on social media. Approximately an hour later, a clarifying statement was issued, which then triggered price increases for Bitcoin and Ethereum as well: Bitcoin (BTC) increased by 11% and Ethereum (ETH) jumped 13%.
This surge represented a positive turnaround for the broader crypto market, which had recently experienced a loss of $800 billion in total value, according to reports in the Financial Times.
Expert Skepticism on Altcoin Inclusion
While the market responded positively, analysts expressed skepticism about the inclusion of alternative cryptocurrencies like Ripple, Solana, and Cardano in the U.S. reserve. James Butterfill, head of research at asset manager CoinShares, noted in an interview with Reuters, “Unlike bitcoin…these assets are more akin to tech investments.” He added that the announcement “suggests a more patriotic stance toward the broader crypto technology space, with little regard for the fundamental qualities of these assets.”
Crypto Reserve Vision: A Plan in the Making
The concept of a national crypto reserve has been in development for months. Trump first presented the idea during the Bitcoin 2024 conference in Nashville while on the campaign trail. He pledged to “keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future,” referring to assets seized by law enforcement. Arkham Intelligence research indicates that the U.S. currently holds approximately $19 billion worth of Bitcoin, much of which was seized from criminal activities. Traditionally, such assets have been sold to support law enforcement and compensate victims.
Shortly after assuming office, Trump signed an executive order to create a working group tasked with “evaluating the potential creation and maintenance of a national digital asset stockpile…potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.” More details about the activities of Trump’s working group are expected to be released at the inaugural Crypto Summit at the White House on Friday.
