President Donald Trump set the cryptocurrency world ablaze by announcing a U.S. "Crypto Strategic Reserve" via Truth Social, naming Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) as its core assets. The move, building on a January 23 executive order to explore a national digital asset stockpile, triggered an immediate market rally. Bitcoin soared 11% to $94,164, Ethereum jumped 13% to $2,516, XRP spiked 33%, Solana rose 22%, and Cardano rocketed nearly 60%, adding roughly $300 billion to the crypto market’s value in hours. Trump’s pledge to make the U.S. the “Crypto Capital of the World” has electrified investors and reignited his pro-crypto stance from the 2024 campaign.
The reserve’s origins lie in Trump’s directive to a Presidential Working Group, tasked with countering what he calls “corrupt attacks” on the industry under the Biden administration. It may leverage the $19 billion in Bitcoin already seized by U.S. law enforcement, though questions linger about whether the government will buy more—a step requiring congressional approval. The announcement aligns with a White House Crypto Summit set for March 7, led by Trump’s “Crypto Czar” David Sacks, promising further details.
The market’s euphoria masks deeper tensions. Critics, including some conservatives, decry it as a taxpayer-funded boon for wealthy crypto holders, with economist Jason Furman calling it “dumb or corrupt.” Trump’s family ties to ventures like World Liberty Financial and his $TRUMP memecoin, which surged 18% post-announcement, fuel conflict-of-interest concerns. Supporters argue it legitimizes crypto, potentially spurring institutional adoption and global competition. Posts on X reflect this divide, with some hailing it as a “game-changer” for U.S. leadership, others dismissing it as a bailout for a volatile industry.
Details remain sparse—will it stabilize markets or merely prop up prices? As Trump pivots from his 2021 Bitcoin “scam” label to crypto champion, the reserve signals a bold, divisive gamble. Friday’s summit may clarify its scope, but for now, it’s a lightning rod for hope, hype, and skepticism.