The cryptocurrency market has surged nearly 20% over the past 48 hours following President Donald Trump’s announcement of a U.S. Crypto Strategic Reserve. The plan, which includes holdings of Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), and XRP, has fueled significant gains across the industry, with some coins recouping losses from last month’s selloff.
Crypto Soars as Trump Backs Crypto
Cardano and XRP led the rally, posting gains over 57% and 24%, respectively, in the last 24 hours. Trump’s own memecoin, labeled as the “Official Trump” token, rose 17%, while Solana recorded a 17.80% jump. Among the top 10 cryptocurrencies by market capitalization, Binance Coin (BNB) saw the smallest increase at 2.55%.
The rally followed Trump’s announcement of a U.S. Crypto Strategic Reserve, backed by his executive order to establish a national crypto stockpile. The GMUSA index, which tracks U.S.-based cryptocurrencies, soared nearly 25%, outperforming all other GMCI indices.
What exactly is Trump’s Crypto Reserve?
Trump described the reserve as a collection of digital assets that could expand beyond its initial holdings. It is based on an executive order (E.O. 14178) he signed in January, which directed officials to explore creating a national stockpile of cryptocurrencies. This stockpile could include assets acquired through government seizures, such as those confiscated in criminal investigations.
White House AI & Crypto Czar David Sacks confirmed that more details will be revealed at a summit later this week. This marks the first time Trump has referred to the initiative as a “Crypto Strategic Reserve.”
Excitement vs. Skepticism
While many in the crypto community welcomed the news, some criticized the inclusion of non-Bitcoin assets. Critics argued that certain assets lack true decentralization, questioning whether taxpayer money should support them. Others pointed out that other DeFi projects should be included, arguing that they were better options. Some skeptics also pointed out that the selection of assets, including XRP and ADA, seemed arbitrary, questioning the rationale behind their inclusion in a government-backed reserve.
What’s Next? All Eyes on Trump’s Crypto Summit
The announcement has sparked debate over the role of digital assets in national reserves and how the U.S. government should interact with the crypto industry. With the summit set for Friday, more details may emerge on the scope and future plans for the Crypto Strategic Reserve. For now, Trump’s announcement has injected fresh momentum into the crypto markets, with investors eagerly watching for further developments.