03/03 update below. This post was originally published on March 02
Bitcoin and major cryptocurrencies Ripple’s XRP, solana and cardano have rocketed higher after Donald Trump revealed plans to create a U.S.-focused crypto reserve.
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The bitcoin price shot toward $90,000 per bitcoin following Trump’s post, despite not initially being named as part of the planned U.S. crypto reserve.
Ripple’s XRP and ethereum rivals solana and cardano—all regarded as U.S.-made cryptocurrencies—each rose between 20% and 50%.
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U.S. president Donald Trump has announced the creation of a crypto reserve, sending the price of … [+]
“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 posted to his Truth Social account, referring to Ripple’s XRP, solana and cardano and without mentioning bitcoin.
“I will make sure the U.S. is the crypto capital of the world. We are making America great again.”
In a follow up post, Trump added: “Obviously, bitcoin and ethereum, other valuable cryptocurrencies, will be the heart of the reserve. I also love bitcoin and ethereum.”
03/03 update: Bitcoin and crypto trader attention has now turned to the upcoming White House crypto summit, set for this coming Friday, in which influential crypto executives, founders and investors will meet with representatives of the president’s working group on digital assets.
“The announcement comes ahead of this Friday’s crypto summit at the White House. The timing means expectations going into Friday will be for something concrete,”
Geoff Kendrick, Standard Chartered Bank’s head of crypto research, said in emailed comments.
A regulatory road map is expected, as well as more details on the crypto strategic reserve, with many analysts questioning how Donald Trump’s proposed crypto strategic reserve will work.
“Yesterday’s proposal lacks details on size, timing, and whether it will be managed by the Federal Reserve or another new or existing entity,” Andrew O’Neill, digital assets managing director at S&P Global Ratings, said in emailed comments. “The Jan 23rd executive order only initiates the exploration of a digital asset reserve, with recommendations to follow.”
David Sacks, the White House AI and crypto czar, weighed in on criticism of the crypto reserve coming from Palantir cofounder Joe Lonsdale who had complained of tax dollars being used to fund “crypto bro schemes,” posting: “Nobody announced a tax or a spending program. Maybe you should wait to find out what’s actually being proposed,” sparking speculation the U.S. strategic crypto reserve might involve holding seized assets rather than the U.S. buying more crypto to stock it.
“White House crypto czar David Sacks will shed more light on what is coming at the Crypto Summit set to take place on Friday,” Petr Kozyakov, chief executive of crypto payment infrastructure platform Mercuryo, said via email.
The bitcoin price and wider crypto market—including Ripple’s XRP, solana and cardano—all surged following Trump’s election victory in November, climbing as traders bet he would follow through on his campaign promises to roll back Biden-era regulatory crackdowns on crypto markets and companies.
“The launch of a U.S. crypto strategic reserve marks a pivotal moment for digital assets, reflecting a major step in the government’s engagement with the crypto industry,” Federico Brokate, head of the U.S. business at crypto exchange-traded fund (ETF) issuer 21Shares, said in emailed comments.
In December, Trump confirmed he plans to establish a U.S. bitcoin strategic reserve. “We’re gonna do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead,” Trump told CNBC.
“Yes, I think so,” Trump said in response to a question about whether the U.S. will create a bitcoin strategic reserve similar to its oil reserve.
In July, then Republican candidate Donald Trump promised to create a “strategic national bitcoin reserve” and predicted bitcoin could eclipse gold’s near-$20 trillion market capitalization during an appearance at the Bitcoin 2024 conference.
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The bitcoin price rose sharply following Donald Trump’s post, announcing he planned to create a … [+]
Alongside plans to create a bitcoin reserve, Trump and his family—led by Trump’s sons Don Jr and Eric—have been expanding their businesses into the world of bitcoin, crypto and blockchain-based decentralized finance (DeFi).
In January, Trump and his wife Melania launched twin memecoins, a form of cryptocurrency that’s traded on community interest, which both surged before crashing back. Both memecoins are now trading down more than 80% from their all-time highs.
The Trump family-backed World Liberty Financial, a crypto platform that is expected to facilitate users earning yield through stablecoins and allow them to borrow bitcoin and crypto, also began buying up various cryptocurrencies, including the ethereum-based wrapped bitcoin.
Meanwhile, Trump’s social media company Trump Media and Technology Group (TMTG), which runs the Truth Social platform and has recently announced its expanding into the world of crypto and finance, has taken steps toward launching a bitcoin exchange-traded fund (ETF)—putting on course to compete with the likes of Wall Street giants BlackRock and Fidelity.
