Trump announces adding Bitcoin, Ether, XRP, Solana, Cardano to US strategic reserve.

US President Donald Trump recently announced a groundbreaking plan to incorporate five major cryptocurrencies into a new US strategic reserve. This revelation sparked a significant surge in crypto prices and market activity. Trump confirmed via a post on Truth Social that his executive order from January regarding digital assets would establish a reserve composed of Bitcoin (BTC), Ether (ETH), XRP, Solana (SOL), and Cardano (ADA). This specific announcement marked the first time these specific cryptocurrencies were disclosed by Trump, who highlighted the significance of BTC and ETH within the reserve.

In the aftermath of Trump’s announcement, the prices of Bitcoin and Ether experienced notable increases of 11% and 13%, respectively. Bitcoin reached $94,164, while Ether hit $2,516. The collective market capitalization of the cryptocurrency market saw a $300 billion uptick within a very short timeframe, as reported by CoinGecko. Additionally, XRP, which is linked to Ripple Labs, also saw gains due to Ripple’s active support and lobbying for congressional candidates who advocate for pro-crypto policies.

Trump’s focus on the cryptocurrency industry has been apparent since his 2024 election campaign, where he openly expressed his support for the sector. He is preparing to host the White House’s inaugural Crypto Summit, scheduled for Friday. Notably, his administration has reversed regulatory actions initiated during the Biden administration, including the dismissal of a Securities and Exchange Commission (SEC) lawsuit against Coinbase, one of the largest crypto exchanges in the US. In contrast, the Biden administration had taken a stricter stance on the industry, prioritizing investigations into fraud and money laundering activities.

Despite the recent price spikes following Trump’s announcement, crypto markets had been facing challenges in the weeks leading up to this development. The gains that were initially seen after Trump’s election victory had been largely wiped out.

Overall, the incorporation of major cryptocurrencies into the US strategic reserve represents a significant milestone for both the digital asset space and traditional financial sectors. Experts suggest that this move could potentially drive greater institutional adoption of cryptocurrencies and provide much-needed regulatory clarity. Trump’s proactive stance towards crypto marks a departure from previous administrations, and the upcoming White House Crypto Summit is anticipated to further shed light on the administration’s intentions and policies regarding the industry. The market response to Trump’s announcement underscores the growing influence of cryptocurrencies and their increasing importance on the global economic stage.