Trump’s Strategic Reserve Announcement Sends Crypto Prices Soaring
In a surprising move, U.S. President Donald Trump announced his intentions to establish a national strategic reserve that would include prominent cryptocurrencies such as Solana (SOL), Cardano (ADA), and XRP. This news caused these digital assets to surge by as much as 60% on Sunday. However, traders are exercising caution, awaiting more concrete details regarding the plans.
Kevin Guo, the director of HashKey Research, shared his insights with CoinDesk via Telegram, stating, “The current upward momentum might see a correction in the short term, as investors begin to price in the crypto reserve announcement and assess the legal viability for Trump to create such a reserve.” Guo pointed out that Federal Reserve Chairman Jerome Powell has previously indicated that the U.S. central bank is not permitted to hold Bitcoin reserves, suggesting that there are still significant technical hurdles to overcome before Trump’s vision can be realized.
Guo further elaborated, “The President’s upcoming crypto summit may provide additional details or further announcements that could bolster the crypto market’s recovery from its recent lows.” Trump is scheduled to host his inaugural Crypto Summit at the White House on March 7, where he is expected to outline how crypto regulations and businesses will be supported across the nation.
On Sunday, Trump announced via Truth Social that XRP, SOL, and ADA would be part of the proposed U.S. strategic crypto reserve. He later added Bitcoin and Ethereum to the list, reinforcing his commitment to the initiative as part of his 2024 presidential campaign platform. This announcement triggered an immediate positive response from the market, with Bitcoin climbing by 6.5% to over $93,000 on Monday. The broader market, as tracked by the CoinDesk 20 (CD20), saw an increase of 7%.
In addition, tokens like Chainlink’s LINK, Uniswap’s UNI, and Movement’s MOVE experienced gains of 8% in the past 24 hours, largely due to their association with the Trump-family backed World Liberty Financial.
Despite the bullish trends, some analysts caution that there is still much work to be done before the current rally can be deemed sustainable. Chris Yu, CEO of SignalPlus, remarked, “We expect increased volatility until more details about the strategic reserve come to light, but the sentiment in the crypto market has shifted rapidly, indicating a potential continuation of the bull market.”
Yu urged investors to monitor inflows into U.S.-traded exchange-traded funds (ETFs), especially following record outflows from these products last week. An increase in inflows could provide crucial indicators of a market bottom and the potential for continued growth in the bull market.
