Trump Fuels Crypto Rally with Strategic Reserve. What’s Inside?The lines are finally rocketing upward! Bored crypto traders suddenly turned into hyperventilating market mavens after Donald Trump on Sunday unveiled the creation of a “strategic crypto reserve.”
Names were named and those names pumped by 10% or more as enthusiastic buyers couldn’t get enough of them. Here’s who made the short list:
Bitcoin BITSTAMP:BTCUSD
Ethereum BITSTAMP:ETHUSD
XRP BITSTAMP:XRPUSD
Solana COINBASE:SOLUSD
Cardano COINBASE:ADAUSD
These five made the cut as the only blue-chip tokens worthy to be recognized by the White House’s crypto working group, which finally got something out after staying tight-lipped for weeks.
“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 said on Truth Social . “I will make sure the U.S. is the Crypto Capital of the World.”
“And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve,” he said in a follow-up post . “I also love Bitcoin and Ethereum!”
Cardano’s token was the biggest gainer moments after the announcement, pumping more than 60% to cross the dollar mark. XRP soared more than 30% to eclipse $2.80 and Solana followed up with a 20% advance to $170 a pop.
Bitcoin and Ethereum, the two heavyweights of the crypto world , climbed 10% and 12%, respectively.
Let’s break down what all this means. A key thing to note is that Trump changed the wording from a crypto “stockpile” to a crypto “reserve.” A reserve would imply that the US government will be collecting, i.e. buying, digital assets for the purpose of holding them right next to its other reserves like gold XAUUSD . The US holds about $770 billion worth of gold.
No proportions, weighting or targets have been announced for the crypto reserve.
But this Friday Trump will be hosting the first-ever crypto venue in the White House. The White House Crypto Summit will be chaired by the administration’s AI and Crypto Czar David Sacks and will feature a speech by the President.
Traders and investors will most likely be glued to the screens for any signs of government adoption and warm legislation.
Obviously, the White House getting involved with crypto is a big deal and perhaps even a watershed moment. But crypto is notoriously volatile and the good (or bad?) old market adage “buy the rumor, sell the news” might hold true more times than traders want to admit.
Do you expect this news to be the start of a new upside swing for crypto? Or is it another frothy move that would soon fizzle? Share your thoughts in the comments!
