Cryptocurrencies rallied on Sunday following an announcement from U.S. President Donald Trump regarding the creation of a strategic crypto reserve for the United States. The reserve will include Bitcoin (BTC), Ethereum (ETH), XRP, Solana’s SOL token, and Cardano’s ADA.
“A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA,” Trump stated in a post on Truth Social. “I will make sure the U.S. is the Crypto Capital of the World.”
In a follow-up post, Trump reaffirmed the inclusion of Bitcoin and Ethereum. “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve,” he said. “I also love Bitcoin and Ethereum!”
Following the announcement, the cryptocurrency market experienced a sharp surge. XRP jumped 33%, while Solana’s token saw a 25% increase. Cardano’s ADA skyrocketed by over 60%. Bitcoin rose 10% to $94,343.82 after dipping below $80,000 on Friday. Ethereum, which has faced significant losses this year, rebounded with a 13% gain.
The move comes ahead of the first White House Crypto Summit, which Trump is hosting on Friday. Investors and industry leaders are expected to closely monitor the event for further details on the reserve plans.
This marks the first time Trump has explicitly supported a crypto “reserve” rather than a “stockpile.” A reserve would imply actively purchasing crypto at regular intervals, whereas a stockpile would mean holding onto any crypto currently in the U.S. government’s possession without active accumulation.
Trump initially introduced the idea of a Bitcoin stockpile last summer at Bitcoin 2024 in Nashville, one of the industry’s largest conferences. During the event, he suggested the U.S. “keep 100% of all the Bitcoin the government currently holds or acquires into the future.” At the same event, Wyoming Senator Cynthia Lummis proposed a national strategic Bitcoin reserve.
After his re-election in November, momentum for a strategic Bitcoin reserve increased, pushing the price of Bitcoin to new all-time highs. However, enthusiasm waned following Trump’s executive order on crypto in late January. The order tasked the President’s Working Group with evaluating “the potential creation and maintenance of a national digital asset stockpile, potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.”
Some industry leaders were skeptical of the order’s language, as it suggested a stockpile rather than a reserve. Additionally, references to “digital assets” left the door open for the inclusion of cryptocurrencies beyond Bitcoin, leading to concerns about government influence over the market.
Many in the crypto community argue that a U.S. reserve should consist solely of Bitcoin, citing its decentralized nature and proven resilience. Others worry that including additional cryptocurrencies would allow the government to pick winners and losers in the market.
Another faction is opposed to the idea of a U.S. crypto reserve altogether, warning that it could undermine the dollar’s status and be easily reversed by future administrations.
“The next election could see a new administration come in and need to find money to pay debt, social security, etc. They could sell the reserve,” said Adam Blumberg, co-founder and vice president of advisory services at Enclave Group.
“I just don’t like the idea of the U.S. government, or any government, owning the most decentralized asset ever,” he added. “That’s not what it was created for [and puts] too much power in the hands of the federal government, which is always in a 4-year, or even 2-year, cycle.”
Bitcoin had been in consolidation mode since the executive order, closing out its worst month since 2022. However, Sunday’s announcement provided a much-needed catalyst, sparking renewed investor confidence in the market.
