🌎 Trump Announces US Crypto Reserve

Trump’s Crypto Reserve Sparks Market Rally and Controversy

Trump’s Crypto Reserve Shakes Things Up

President Donald Trump has announced the formation of a U.S. crypto strategic reserve, directing the President’s Working Group on Digital Assets to include Ripple (XRP), Solana (SOL), and Cardano (ADA) in the reserve. However, the initial absence of Bitcoin (BTC) and Ethereum (ETH) in the original statement caught many by surprise.

An hour later, Trump clarified in a follow-up post that BTC and ETH would also be included, stating they would be “at the heart of the reserve.” This decision has sparked mixed reactions, with some arguing that BTC alone should be the foundation of a national crypto reserve, while others see this as a step toward broader digital asset adoption at the federal level.

Market Soars as Altcoins Surge

The crypto market reacted swiftly to Trump’s announcement, with the overall market cap surging by approximately $230 billion in the last 24 hours. ADA led the rally, opening at $0.65 before soaring to $1.13—an impressive 74% jump. SOL and XRP also saw sharp rallies, climbing 25% and 35%, respectively.

Bitcoin, despite being left out of Trump’s initial announcement, posted a strong recovery, breaking out of its bearish phase and crossing $90,000. Ethereum followed a similar pattern, climbing from $2,216 to $2,548 — a 15% gain.

Insider Trading Speculation Steams

The controversy surrounding Trump’s crypto reserve announcement erupted almost immediately after the market’s reaction. Hours before the news broke, well-known trader Teddy Bitcoins posted about a $200 million bet on BTC and ETH using 50x leverage.

This sparked suspicions across the crypto community, with some linking the trade to Trump and his inner circle. Journalist Ben Norton pointed out that Trump’s recently appointed AI and crypto czar, David Sacks, had indirect financial ties to the very assets included in the U.S. crypto reserve.

What Do Experts Think?

The reactions to Trump’s crypto strategic reserve announcement have been all over the place. Some see it as a major step toward legitimizing digital assets at a national level, while others think it’s a political miscalculation that could create unnecessary complications.

Coinbase CEO Brian Armstrong argued that Bitcoin should have been the sole choice for the reserve, calling it the “simplest” and most logical successor to gold. Jeff Park, Head of Alpha Strategies at Bitwise, criticized Trump’s decision as a “huge political miscalculation” for underestimating the importance of focusing solely on BTC.

Other experts see fundamental issues with certain assets in the reserve. Will Baxter, Executive Vice President at Braiins Mining, questioned the logic of the U.S. government using taxpayer money to acquire XRP, an asset where Ripple still controls more than half of the circulating supply.

Despite the controversy, some experts believe that this reserve will evolve over time. Binance co-founder CZ suggested that more assets would likely be added, and other governments might follow suit, signalling a shift in how nations engage with digital assets.