Experts See Long-Term Growth Potential as US Policy Boosts Confidence
The announcement by US President Donald Trump regarding the establishment of a US Crypto Strategic Reserve has bolstered confidence in Malaysia’s cryptocurrency sector, with industry experts predicting long-term growth for digital assets.
Trump’s strategic reserve, comprising Bitcoin, Ethereum, XRP, Solana, and Cardano, has been perceived as a significant endorsement of cryptocurrency’s legitimacy and future potential. Malaysian investors are responding positively, viewing the development as an opportunity for further adoption and institutional recognition of digital assets.
Hata co-founder and CEO David Low described the move as a pivotal moment for the cryptocurrency market, one that could drive both short-term price movements and long-term growth.
“With supportive regulatory frameworks in place, Malaysians will be able to capitalise on these emerging opportunities in the digital asset space through licensed exchanges in Malaysia,” Low said.
He added that the selection of these cryptocurrencies for the US reserve validates their utility and value, potentially paving the way for broader institutional and mainstream adoption.
“This development is likely to spur greater interest and adoption of these digital assets at the local level as well, as investors and businesses increasingly view them as credible components of a diversified portfolio,” he said.
Malaysia’s Securities Commission has already taken proactive steps by approving the five selected digital assets for trading on licensed exchanges such as Hata, ensuring a secure and compliant investment environment.
StashAway Malaysia country manager Wong Wai Ken believes other nations may follow the US lead.
“El Salvador, which already holds 6,000 BTC, and Switzerland, which is considering a referendum, are likely frontrunners. Germany and Hong Kong may act to diversify reserves, while BRICS+ nations (Brazil, Russia, India, China, South Africa) could counter US influence,” he said.
Aaron Tang, general manager for Asia-Pacific at Luno, noted that Malaysian investors increasingly view cryptocurrencies as a way to diversify beyond traditional investments such as equities, bonds, real estate, and precious metals.
“Based on our observations, Malaysian crypto investors are among the most savvy investors in the region. They tend to follow the market movements closely and invest accordingly,” he said.
Tang, however, cautioned investors about the inherent risks associated with cryptocurrencies. While digital assets offer high reward potential, they also come with significant volatility. He advised investors to consider broader macroeconomic factors rather than basing decisions solely on US policies.
Following Trump’s March 2 announcement, cryptocurrency markets saw an immediate surge. Bitcoin’s price spiked by over 11%, reaching approximately US$94,000 (RM415,480), while Ethereum saw a 13% increase to about US$2,500. The selected altcoins—XRP, Solana, and Cardano—recorded even larger gains of 33%, 25%, and 60%, respectively.
Industry experts suggest that while Trump’s move has had an immediate impact on the market, its long-term effects will depend on global regulatory developments and broader economic trends.
