France – January 20, 2025: Cryptocurrency markets surged on Sunday following an announcement by former President Donald Trump about the establishment of a strategic crypto reserve for the United States. The reserve is set to include major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). The announcement sparked significant price increases across the crypto market.
Trump’s Announcement Fuels Market Rally
In a post on Truth Social, Trump stated, “The American crypto reserve will elevate this critical industry after years of corrupt Biden attacks. My executive order for digital assets has directed the Presidential Working Group to move forward with a crypto strategic reserve that includes XRP, SOL, and ADA.” He emphasized his commitment to ensuring the U.S. becomes a global leader in cryptocurrency.
In a subsequent post, Trump added, “And of course, BTC and ETH, like other valuable cryptocurrencies, will be at the core of the reserve. I also love Bitcoin and Ethereum!”
Market Reaction
Following the announcement, XRP surged by 33%, while Solana’s SOL token jumped by 25%. Cardano’s ADA saw an impressive increase of over 60%. Bitcoin rose by 10% to $94,343.82 after dipping below $80,000 earlier, marking a three-month low. Ethereum, which had experienced some of the steepest losses in the crypto market, gained 13%.
First Crypto Summit at the White House
Trump is set to host the first-ever crypto summit at the White House on Friday, where investors will closely watch for further details on the reserve plans. This marks the first time Trump has openly supported the idea of a crypto reserve. Unlike traditional reserves that involve active purchases, this proposal focuses on holding existing crypto assets owned by the U.S. government without selling them.
Industry Reactions
While some in the crypto community welcomed the announcement, others expressed concerns. Many argue that the reserve should exclusively hold Bitcoin, given its status as the most decentralized and tested cryptocurrency. Including other assets, they say, could lead to the government picking winners and losers in the market.
Critics also warned that a crypto reserve could undermine the U.S. dollar’s dominance and might be reversed by future administrations. Adam Blumberg, co-founder and VP of Advisory Services at Interaxis, noted, “The next elections could see a new administration, and they might sell off the reserve to address debt or social security.”
Background
Trump first introduced the concept of a Bitcoin reserve last summer at the Bitcoin 2024 Conference in Nashville, where he proposed holding 100% of all Bitcoin owned or acquired by the U.S. government. The idea gained momentum after his re-election in November, contributing to Bitcoin’s surge to a new all-time high. However, enthusiasm waned after Trump’s January executive order on digital assets, which called for the evaluation of a national crypto reserve.
Looking Ahead
The crypto market remains in consolidation as it awaits further developments. Bitcoin recently closed its worst month since 2022, reflecting ongoing uncertainty. As the industry gears up for the White House summit, the debate over the merits and risks of a U.S. crypto reserve continues to unfold.
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