Major cryptocurrencies surged on Sunday after US President Donald Trump expressed support for a new digital asset reserve, naming Bitcoin, Ethereum, XRP, Solana, and Cardano as its key components. In a post on Truth Social, Trump announced that he had signed an order to create a Crypto Strategic Reserve—a move he claimed would establish the US as “the Crypto Capital of the World.” This announcement triggered a rapid rally in the crypto market, with the five specified coins seeing significant price gains.
Previously, Trump had been a harsh critic of cryptocurrencies, once calling Bitcoin a “scam” in a 2021 interview. However, his stance has shifted considerably in recent months, highlighted by the fact that both he and his wife, Melania Trump, have launched their own digital tokens.
The market response was dramatic: XRP, Solana, and Cardano climbed by up to 62% within hours, while Bitcoin and Ethereum each increased by more than 10%. Data from CoinGecko showed that the overall cryptocurrency market added nearly $300 billion in value, with Bitcoin trading at $94,164 and Ethereum at $2,516 on Sunday afternoon.
Despite the optimism, the specifics of the proposed reserve remain unclear. An executive order from January assigned a presidential working group to assess the creation of a national digital asset stockpile, potentially using cryptocurrencies seized by US law enforcement. However, experts are divided on whether such a reserve can be established without Congressional approval.
James Butterfill, head of research at CoinShares, noted that including assets beyond Bitcoin was unexpected, remarking that these other cryptocurrencies are more like technology investments than a digital equivalent of gold. Federico Brokate, head of US business at 21Shares, added that the move might signal a broader shift in US policy towards active participation in the crypto economy, potentially accelerating institutional adoption and offering greater regulatory clarity.
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Trump’s pro-crypto position marks a clear departure from the policies of the previous administration. Under Joe Biden, the Securities and Exchange Commission (SEC) took a hard stance on the crypto sector, even suing major players like Coinbase, whereas Trump has reversed some of those measures, with the SEC dropping investigations into several crypto companies.
The president is set to host the first-ever White House Crypto Summit on Friday, where more details about the strategic reserve are expected to be revealed.
Analysts remain cautiously optimistic about further growth in the crypto market, though they warn that sustained gains will depend on achieving better regulatory clarity and more stable macroeconomic conditions. Geoff Kendrick, an analyst at Standard Chartered, has even predicted that Bitcoin could hit $500,000 before Trump leaves office—far exceeding its current record high of $109,071.
Regulatory filings show that while hedge funds remain the dominant buyers of digital assets, interest from banks and sovereign wealth funds is growing. Meanwhile, quarterly reports indicate increased exposure to Bitcoin-linked ETFs among asset managers.
Analysts are also debating whether the reserve could be established through the US Treasury’s Exchange Stabilization Fund—traditionally used for managing foreign currency reserves—or if it would require formal Congressional approval.
Overall, Trump’s latest move represents a significant shift from his earlier skepticism towards cryptocurrencies. While his backing of a Crypto Strategic Reserve has boosted market confidence, industry experts are now waiting for further details on its feasibility and regulatory implications.
