Bitcoin and other major cryptocurrencies surged on Sunday following President Trump’s announcement that he would proceed with plans for a US strategic crypto reserve, which would include Bitcoin, Ether, and three other digital assets.
“A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration,” Trump stated in a post on his social-media platform, Truth Social. “I will make sure the U.S. is the Crypto Capital of the World.”
Trump confirmed that the reserve would also include Solana, Ripple-linked XRP, and Cardano. Unlike Bitcoin, which is the oldest and most established cryptocurrency, these alternative tokens were created more recently by smaller teams, making them more volatile and risk-prone.
The specifics of how such a reserve would be structured remain uncertain, as does its potential impact on the US economy.
By Sunday afternoon, Bitcoin had climbed 9% in the past 24 hours to approximately $93,000, while Ether saw an 11% surge to $2,500. Solana’s value skyrocketed by 20% to $169, XRP rose 30% to $2.80, and Cardano experienced an astonishing 60% jump to $1.02.
The rally comes after a period of decline in the crypto market. Bitcoin, which was trading around $109,000 on Inauguration Day, plummeted below $80,000 last week amid a broader market retreat from risk assets, including technology stocks and cryptocurrencies. Additionally, a significant security breach at crypto exchange Bybit more than a week ago further dampened investor confidence.
Trump initially proposed the idea of a “strategic national Bitcoin stockpile” during his keynote speech at the annual Bitcoin Conference in July. The concept has since sparked enthusiasm within the crypto community, where industry leaders and investors hope for government policies that legitimize Bitcoin, potentially driving its value higher.
Once a skeptic of Bitcoin, Trump embraced the cryptocurrency sector last year, making a series of commitments to bolster the industry. Since reclaiming the White House, he has established a working group focused on digital-asset markets and granted a pardon to Ross Ulbricht, the founder of Silk Road, an infamous online marketplace that facilitated transactions using Bitcoin.
Analysts suggest that one potential method for building the reserve could involve the US government retaining its substantial Bitcoin holdings seized from cybercriminals and darknet markets. According to data from crypto firm 21.co, the US government currently possesses over 180,000 Bitcoin, valued at roughly $18 billion at present market prices. Historically, these assets have been sold to reimburse victims of cybercrime and fund law enforcement efforts.
While the government has also confiscated other cryptocurrencies, those holdings are not as extensively documented by researchers.
Trump is set to host the first-ever White House Crypto Summit on Friday. The event will be led by David Sacks, Trump’s appointed AI and crypto advisor, and will bring together top executives, founders, and investors from the industry.
