U.S. stocks surged following former President Donald Trump’s announcement that he will include five digital assets in a new U.S. strategic reserve of cryptocurrencies. The announcement, made on social media, specifically named Bitcoin, Ether, XRP, Solana, and Cardano, and immediately drove up the market value of each cryptocurrency.
Trump’s post on Truth Social revealed his intention to utilize his January executive order on digital assets to create a reserve. He later added that Bitcoin (BTC) and Ether (ETH) would be central to the reserve as valuable cryptocurrencies.
Following the announcement, Bitcoin, the world’s leading cryptocurrency by market capitalization, jumped over 11% to $94,164. Ether, the second-largest, saw an approximate 13% rise, reaching $2,516. Overall, the cryptocurrency market experienced a surge of about 10%, equivalent to over $300 billion, according to data from CoinGecko.
The crypto space reacted positively to the news. “This move signals a shift toward active participation in the crypto economy by the U.S. government,” stated Federico Brokate, head of U.S. business at 21Shares. “It has the potential to accelerate institutional adoption, provide greater regulatory clarity, and strengthen the U.S.’s leadership in digital asset innovation.”
However, some analysts expressed surprise at the inclusion of assets beyond Bitcoin. James Butterfill, head of research at CoinShares, noted that assets like XRP, Solana, and Cardano, are “more akin to tech investments” when compared to Bitcoin. Butterfill suggested Trump’s announcement represented a more patriotic approach to the broader crypto technology area.
Trump, who gained backing from the crypto industry during his 2024 election bid, has promptly supported their policy preferences, including the hosting of the first White House Crypto Summit. Under the previous administration, regulatory bodies took action to prevent fraud and money laundering, but, recently, the Securities and Exchange Commission withdrew investigations into several crypto entities. Although there has been a recent downturn in cryptocurrency prices, many foresee an encouraging future.
Experts and analysts are divided on whether an act of Congress will be needed to establish the reserve. Some suggest utilizing the U.S. Treasury’s Exchange Stabilization Fund.
Reporting by Trevor Hunnicutt in West Palm Beach, Florida; Katharine Jackson in Washington and Jessica DiNapoli in New York; Editing by Bill Berkrot and Lisa Shumaker
