Boost for Cryptocurrencies as Those Included in the National Strategic Reserve Are Announced

The President of the United States, Donald Trump, announced on Sunday the cryptocurrencies he plans to include in a new national strategic reserve, which caused their market value to surge. Trump stated on social media that his January executive order on digital assets would create a reserve of currencies, including bitcoin, ether, XRP (Ripple), solana, and cardano. These names had not been previously disclosed. The values rose by as much as 60% in early trading following the reveal of the list.

Trump confirmed that, with this decision, he is directing the presidential task force “to move forward with a strategic cryptocurrency reserve that includes XRP, solana, and cardano.” “I will ensure that the United States becomes the global capital of cryptocurrencies,” he reiterated, as he had previously stated. Over an hour later, Trump added another post: “And, of course, bitcoin and ether, along with other valuable cryptocurrencies, will be at the heart of the reserve.”

Bitcoin, the largest cryptocurrency by market capitalization, rose around 8%, reaching $90,800. Ether, the second-largest cryptocurrency, also saw a similar increase, reaching $2,409.

The Republican president gained support from the cryptocurrency industry during his 2024 election campaign and quickly moved to back his political priorities. Under his predecessor, Joe Biden, regulators had taken action against the industry in an attempt to protect Americans from fraud and money laundering.

However, in recent weeks, cryptocurrency prices have fallen sharply, with some of the major digital coins erasing almost all the gains made after Trump's electoral victory sparked a wave of excitement across the industry. Doubts about the impact of Trump's policies on the global economy, tariffs, and the unpredictability of his measures have created uncertainty among investors, leading them to move away from riskier and more volatile options like cryptocurrencies. For example, bitcoin had dropped more than 25% from its all-time high of $109,000 in just six weeks.