Bitcoin and other major cryptocurrencies saw a sharp rise after former President Donald Trump announced a plan to establish a U.S. Strategic Crypto Reserve. The move, aimed at reinforcing the country’s leadership in the digital financial sector, triggered a market-wide rally, with Bitcoin surging over 10% in a matter of hours.
According to reports, the strategic reserve will include Bitcoin (BTC), Ethereum (ETH), Ripple’s XRP, Solana (SOL), and Cardano (ADA). This marks a significant shift in U.S. policy toward digital assets, signaling a more favorable regulatory stance under Trump’s leadership.
Following the announcement, Bitcoin’s price jumped from $85,248 to $92,802, while Ethereum climbed from $2,204 to $2,476. Other major cryptos also experienced substantial gains, with XRP soaring 37% to $2.95, Solana rising 23% to $173.44, and Cardano surging 68% to over $1.07.
The Strategy Behind the Reserve
The establishment of a Crypto Strategic Reserve is reportedly part of a broader initiative to position the U.S. as the “Crypto Capital of the World.” The plan involves utilizing digital assets seized through civil or criminal asset forfeitures to create a government-controlled crypto reserve. This aligns with the growing sentiment that the U.S. should embrace blockchain technology rather than regulate it out of the country.
Additionally, the Trump administration is preparing to host a White House Crypto Summit, which will bring together industry leaders, regulators, and policymakers to discuss the future of digital assets. An executive order has also been issued, requiring federal agencies to provide a detailed accounting of digital asset holdings to ensure responsible management of cryptocurrencies within the government.
Market Reaction and Future Implications
Investors and industry experts view this move as a potential game-changer. A government-backed strategic crypto reserve could enhance legitimacy and confidence in digital assets, attracting further institutional and retail investments.
If implemented successfully, this policy could lead to a more crypto-friendly regulatory environment, making the U.S. a global hub for blockchain innovation. However, critics argue that increased government involvement in crypto markets could lead to unforeseen regulatory challenges.
With Bitcoin surpassing new price milestones and broader crypto adoption on the rise, all eyes are now on how this policy will unfold in the coming months
