Trump announced on his social media platform Truth Social that the United States will establish a cryptocurrency strategic reserve, centered around Bitcoin and Ethereum, and also including smaller, higher-risk cryptocurrencies such as Solana, XRP linked to Ripple, and Cardano.
Trump stated: "The U.S. cryptocurrency reserve will enhance this critical industry and break the chains of corruption that have bound the Biden administration for years. I will ensure that the United States becomes the global center for cryptocurrency."
Upon the announcement, the cryptocurrency market quickly rebounded. According to CoinMarketCap data, as of press time, Bitcoin rose 9%, to $93,969; Ethereum rose 13%, to $2,516; Solana surged 24%, to $174.64; Cardano skyrocketed 70%, to $1.11; XRP rose 34%, to $2.93.
Oskar Aslund, Chief Strategy Officer at European cryptocurrency hedge fund brokerage AKJ, said: "Today is an extraordinary day for currencies like Cardano. The strategic reserve is like the Holy Grail for the crypto market, transforming these tokens from experimental nature to U.S. reserve currencies."
After Trump announced this news on Sunday, his son Eric Trump also expressed support on social media.
In February, Bitcoin's monthly decline reached 18%, the largest monthly drop since June 2022. Last week, the decline intensified, with a 7.2% drop to $78,226 on Friday, a peak decline of 28%.
However, Trump's latest stance and the anticipated cryptocurrency summit swept away the market's gloom, reversing the recent market downturn.
On March 7, the White House will host the first cryptocurrency summit, where Trump will speak. The summit will be chaired by Trump's "Artificial Intelligence and Cryptocurrency Czar" David Sachs, with industry leaders, CEOs, founders, and investors all in attendance.
Trump first proposed the concept of a "national strategic Bitcoin reserve" at last July's annual Bitcoin conference, but it is still unclear how the U.S. government will specifically establish this reserve.
Analysts suggest that one possible approach is for the U.S. government to retain Bitcoins confiscated from cybercriminals and dark web markets. According to data from the crypto company 21.co, the U.S. government currently holds over 180,000 Bitcoins, valued at approximately $18 billion at current market prices.
