Announcement: Five Cryptocurrencies to Be Included in U.S. National Reserves
President Donald Trump’s recent announcement regarding the establishment of a strategic cryptocurrency reserve has led to a rapid rebound in the struggling digital asset market. Bitcoin surged from its late-February low of $78,000 to over $94,000, while major altcoins also experienced double-digit gains . Market sentiment has shifted dramatically from bearish to bullish.
Trump declared via his social media platform, Truth Social, that the reserve would include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA), with BTC and ETH serving as its core assets . This move follows Executive Order 14178, signed in January, which initiated the formation of a task force to regulate digital assets and assess the feasibility of a national crypto reserve . Unlike the previous Biden administration’s restrictive approach, Trump’s stance signals a major policy shift, aiming to support the cryptocurrency sector .
Market Reaction: Prices Skyrocket Across Major Cryptocurrencies
Immediately following the announcement, the cryptocurrency market responded with a significant rally. Bitcoin surged to around $94,000 , marking a more than 20% increase within days. Ethereum climbed to approximately $2,500, a 20% rise, while XRP soared 38%, Solana jumped 20%, and Cardano skyrocketed by 78% . Within 24 hours, the total cryptocurrency market capitalization increased by $321.5 billion, reaching $3.2 trillion . Market data indicates that over $200 million flowed into spot markets within the first hour post-announcement, suggesting that the surge was driven by genuine demand rather than leveraged speculation .
Regulatory Shifts and Future Outlook
This announcement represents a significant turning point in U.S. cryptocurrency regulations. The Trump administration has taken a starkly different approach compared to its predecessor by banning the introduction of a central bank digital currency (CBDC) in the U.S. and ensuring that cryptocurrency firms are not excluded from banking services . These moves indicate a reversal of the Biden administration’s strict regulatory stance and suggest that the U.S. may position itself as a global leader in cryptocurrency innovation. The White House is set to host the first-ever “Crypto Summit” in early March, where Trump is expected to outline additional initiatives. While many in the market view this as a “strong catalyst” for renewed growth, some remain cautious, noting that if the reserve is built primarily from already-seized assets, it may not generate significant new buying pressure . The details of the plan will be crucial in determining its actual market impact.
Investor Response: Institutional and Retail Reactions
This announcement has influenced both institutional and retail investors. BlackRock, the world’s largest asset manager, announced that it would allocate 1–2% of its $150 billion portfolio to Bitcoin , marking its first-ever inclusion of digital assets. This shift could bring newfound legitimacy and demand to the cryptocurrency market . At the same time, retail investors reacted with enthusiasm, with trading volumes surging across major exchanges. Social media platforms were flooded with discussions urging traders not to “miss out” on what some see as a historic market shift.
Reactions from the Cryptocurrency Industry
The cryptocurrency sector has largely welcomed this policy shift. Many see it as a long-awaited improvement in the relationship between the U.S. government and the digital asset industry, with industry leaders stating that “the U.S. has finally committed to developing this market” . However, some remain skeptical, questioning the selection criteria for the included cryptocurrencies and expressing concerns over the plan’s execution . Nonetheless, the official recognition of digital assets as strategic assets by the U.S. government marks a significant milestone. This policy shift could also influence other nations, making future regulatory developments and the implementation of the reserve plan a key focus for the industry.
