Trump Proposes U.S. Crypto Reserve Amid Market Fluctuations

WASHINGTON — Cryptocurrency prices surged on Sunday following President Donald Trump‘s unexpected announcement that the U.S. government plans to establish a “Crypto Strategic Reserve.” This reserve will include a mix of well-known and lesser-known digital currencies, signaling a significant shift in the government’s approach to cryptocurrency investment amid ongoing volatility in the market.

President Trump revealed this initiative via social media, stating that the reserve would encompass popular cryptocurrencies such as Bitcoin and Ethereum, in addition to XRP, Solana, and Cardano. This announcement marks Trump’s first explicit proposition for the government to hold a diverse range of digital assets, indicating a growing alignment between his administration’s strategies and the evolving cryptocurrency landscape.

The value of Bitcoin notably jumped to around $90,000 on Monday after having dipped below $80,000 earlier last week. Other cryptocurrencies, including XRP, Solana, and Cardano, experienced significant price spikes shortly after Trump’s announcement, although they faced a gradual decline by Monday morning.

In his announcement, Trump reiterated his past support for a “strategic national bitcoin stockpile,” which would involve bitcoins previously seized by the government in various law enforcement operations. However, the inclusion of additional cryptocurrencies has sparked mixed reactions within the industry, raising questions about market stability and the appropriateness of government-held crypto reserves.

Eric Trump, the president’s son, lauded the market’s positive response to his father’s announcement, claiming it validated his advice on social media for followers to invest in cryptocurrencies. “Hopefully, I made someone’s life just a little bit better,” he remarked.

The Trump administration has cast itself as a champion for the cryptocurrency sector, asserting that the industry has faced unjust scrutiny under the Biden administration. In the weeks following his inauguration, Trump’s administration has undertaken measures perceived to bolster the cryptocurrency landscape, including pausing enforcement actions by the Securities and Exchange Commission.

The overall market response to Trump’s initial victory and subsequent engagements in the crypto sphere has been mixed. Following an earlier rise in Bitcoin’s value, Trump famously took to social media stating, “YOU’RE WELCOME!!!” when Bitcoin first surpassed $100,000 last December. However, as market volatility persisted, he confronted backlash from various crypto enthusiasts for the perceived failure of his influence on the market’s stability.

“Why is crypto in the toilet if Trump is crypto king?” raised social media influencer Dave Portnoy critical of the heights and subsequent falls experienced by the cryptocurrency market in the past months.

The plan to include a wider array of cryptocurrencies might encounter resistance from segments of the crypto industry, particularly given Bitcoin’s dominance, which constitutes over half of the total global crypto market cap. Advocates argue that diversifying government reserves could mitigate financial risks; critics, however, caution against the inherent volatility of the cryptocurrency market.

In tandem with the reserve announcement, Trump disclosed plans to host a “Crypto Summit” at the White House with industry leaders, reflecting the administration’s commitment to engaging actively with the cryptocurrency sector.