Crypto Prices Surge as Trump Endorses Five Coins for ‘Crypto Reserve’
Trump Names Bitcoin, Ether, and Three Others for U.S. Crypto Reserve, Market Surges by $300 Billion.
Key Takeaways:
- President Donald Trump announced five digital assets he expects to include in a national crypto reserve.
- The selected assets for the crypto reserve include Bitcoin, Ether, XRP, Solana, and Cardano.
- The crypto market jumped 10%, adding over $300 billion within hours of Trump’s statement.
On March 2, U.S. President Donald Trump revealed plans for a national crypto reserve, naming Bitcoin, Ethereum, XRP, Solana, and Cardano as the selected assets. Following the announcement, the prices of all five cryptocurrencies spiked, signaling strong investor confidence and market excitement.
Many experts, traders, and crypto enthusiasts believe this move aligns with President Trump’s campaign promise to establish the U.S. as the “Crypto Capital of the World.”
Trump Says Crypto Reserve Will Boost Industry After Biden Administration's Crackdown
In a Truth Social post, President Trump declared that a U.S. crypto reserve would strengthen the industry after enduring what he called years of corrupt attacks under former President Joe Biden’s administration.
Earlier this year, Trump signed an executive order forming the Presidential Working Group on Digital Asset Markets, a team tasked with evaluating the feasibility of a crypto reserve. He has now directed the group to accelerate plans.
The announcement triggered an immediate reaction in the market.
BTC price, which had been sliding since mid-January, rebounded to around $94,154 from $78,273 on Friday. Other major digital assets also saw substantial gains: Ether jumped 20%, XRP soared by 38%, Solana rose by 20%, and Cardano skyrocketed by 78%.
While details on how the crypto reserve will function remain unclear, Trump’s administration is expected to provide more insight at the upcoming Crypto Summit, scheduled to take place at the White House on March 7, 2025.
Notably, experts have pointed out that President Trump’s pro-crypto stance starkly contrasts with his initial skepticism. Crypto analysts and social media traders have pointed out this move might be a Trump pump and dump.
Since taking office, Bitcoin has soared to all-time highs as he has actively sought to undo the restrictive measures put in place by his predecessor.
The Biden administration also saw a surge in enforcement actions against major crypto platforms.
In 2022 alone, the SEC launched 30 cases against cryptocurrency firms, a 50% increase from the previous year. Exchanges like Coinbase and Binance faced lawsuits over alleged securities violations, adding to the uncertainty within the industry.
Now, Trump’s administration is reversing course. Key regulatory positions have been filled with pro-crypto figures, including Caroline Pham as head of the Commodity Futures Trading Commission (CFTC) and Mark Uyeda, replacing Gary Gensler as the chair of the SEC.
Their leadership has already influenced a shift in policy, with civil charges against Coinbase dropped and cases against Binance, OpenSea, Robinhood, and Uniswap either paused or abandoned.
President Trump has also granted a full pardon to Ross Ulbricht, the founder of the Silk Road marketplace. This decision marked an end to Ulbricht’s decade-long imprisonment and has reignited debates on the role of digital justice in the crypto space.
Whether Trump’s crypto reserve initiative will succeed in reshaping the financial space in the U.S. remains to be seen, but for now, the market is responding with optimism.
Could A Crypto Reserve Help Offset U.S. Debt?
Discussions about a crypto reserve as a potential solution to offset the United States' soaring debt are gaining traction.
While no official details have been released, analysts suggest that the primary goal of such a reserve would be to create major wealth for the nation while addressing its financial challenges.
On February 21, the U.S. SEC confirmed that its newly established Crypto Task Force had met with Bitcoin advocate Michael Saylor. During the meeting, Saylor presented a proposal for a Bitcoin reserve that could generate up to $81 trillion in wealth for the U.S. Treasury.
His plan specifically targets the growing national debt, which, as of February 25, 2025, has reached $36.22 trillion. With debt levels continuing to rise, supporters of the crypto reserve see it as a bold and innovative financial strategy.
The discussion also explored ways to expand the cryptocurrency market, potentially increasing its total value from $1 trillion to $590 trillion. This aligns with former President Trump’s vision of establishing the U.S. as a dominant force in the global crypto economy.
The idea of a crypto reserve is not exclusive to the U.S. Other nations are also exploring the idea.
The Czech National Bank (CNB) Governor, Aleš Michl, has proposed investing billions of euros from public funds into Bitcoin. Inspired by the U.S. administration’s pro-crypto stance, he sees Bitcoin as a viable addition to central bank reserves that could shape future monetary policies worldwide.
Jimmy Aki
Drawing from his background in economics, Jimmy has monitored blockchain development for years, firmly believing in its power to democratise finance. Beyond offering commentary on the latest crypto developments, he also spends his time analysing open-source codes of promising projects on GitHub. Jimmy holds Bitcoin and Ethereum.
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