Trump Unveils National Crypto Reserve, Sending Five Digital Currencies Soaring

Donald Trump made headlines by announcing the establishment of a national cryptocurrency reserve, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano. This declaration has not only signified a notable pivot in Trump's stance on digital currencies but has also catalyzed substantial price increases across the crypto market. Following this announcement, Bitcoin and Ethereum surged over 10%, while Cardano experienced remarkable growth exceeding 60%. The implications of such a strategic reserve could be far-reaching for both the cryptocurrency landscape and governmental involvement in this burgeoning sector.

Joe Biden.

Cardano jumped more than 70 percent following Trump’s announcement, while XRP and Solana rose more than 30 percent and 20 percent, respectively.

Bitcoin and Ethereum, which are the largest cryptocurrencies by market value and were not named in Trump’s initial Truth Social post announcing the reserve, gained more than 10 percent.

In recent weeks though, cryptocurrency prices are down sharply, with some of the biggest digital currencies erasing nearly all of the gains made after Trump’s election win triggered a wave of excitement across the industry.

Analysts say the market needs a reason to move higher, such as indications that the U.S. Federal Reserve plans to cut interest rates or a clear pro-crypto regulatory framework from the Trump administration.

Quarterly filings showed that asset managers boosted allocations to U.S. ETFs tied to the price of spot bitcoin in the fourth quarter of 2024.

Analysts and legal experts are divided on whether an act of Congress will be necessary to set up the reserve. Some have argued the reserve could be created via the U.S. Treasury's Exchange Stabilization Fund, which can be used to purchase or sell foreign currencies.

Although details regarding the operational framework of this reserve remain sparse, it represents a significant shift towards legitimizing cryptocurrencies within traditional financial systems. The upcoming White House Crypto Summit is anticipated to elucidate these plans further and engage stakeholders across various sectors. As such developments unfold, they will likely shape public perception and regulatory approaches toward cryptocurrencies in the United States.

Read more

Sarah H

Also on site :

• Fujitsu and RIKEN develop world-leading 256-qubit superconducting quantum computer
• As the dollar falters, the world’s central banks tread a tightrope — devalue their currency or not
• Kenya: Trade, Investment and Infrastracture On Top Agenda As Ruto Visits China