Islamabad, Mar 3, 2025: The value of leading cryptocurrencies experienced a sharp increase on Sunday after former U.S. President Donald Trump publicly endorsed the creation of a digital asset reserve.
In a statement, Trump named Bitcoin, Ethereum, XRP, Solana, and Cardano as key elements of this proposed initiative.
Trump took to Truth Social to announce that he had signed an executive order for the establishment of a Crypto Strategic Reserve.
He asserted that this move would help solidify America’s position as “the Crypto Capital of the World.”
The declaration immediately triggered a surge in the crypto market, driving significant price increases for the mentioned cryptocurrencies.
Previously, Trump had been vocal in his criticism of digital currencies, once labeling Bitcoin a “scam” in a 2021 interview.
However, his perspective has shifted significantly in recent times. Both Trump and his wife, Melania Trump, have even introduced their own digital tokens.
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Following Trump’s announcement, XRP, Solana, and Cardano witnessed price hikes of up to 62% within a few hours, while Bitcoin and Ethereum registered gains exceeding 10%.
The total cryptocurrency market capitalization swelled by nearly $300 billion, according to CoinGecko.
By Sunday afternoon, Bitcoin was trading at $94,164, while Ethereum had climbed to $2,516.
Despite the positive market reaction, questions remain regarding the execution of the proposed reserve.
The executive order issued in January directs a presidential task force to assess the feasibility of creating a national reserve of digital assets, potentially leveraging confiscated cryptocurrencies
. However, legal experts are divided on whether such a reserve can be established without legislative approval.
James Butterfill, research head at CoinShares, remarked that it was unexpected to see assets beyond Bitcoin included in the reserve.
“Unlike Bitcoin, which is often compared to digital gold, these other assets are more akin to tech investments,” he observed.
Federico Brokate, U.S. business lead at 21Shares, suggested that the move signals a broader policy shift.
“This reflects a growing government interest in participating in the crypto economy, which could accelerate institutional investment and provide clearer regulations,” he stated.
Trump’s Shift Toward Crypto-Friendly Policies
As part of his 2024 campaign, Trump has actively engaged with the cryptocurrency industry, distinguishing himself from Joe Biden, whose administration took a tougher stance on digital assets.
Under Biden, the SEC aggressively pursued regulatory actions against major crypto firms, including a lawsuit against Coinbase
. In contrast, since returning to office, Trump has rolled back some of these measures, including the withdrawal of certain SEC investigations into cryptocurrency companies.
The president is also set to host the first-ever White House Crypto Summit on Friday, where additional details about the strategic reserve are expected to be disclosed.
Analysts Predict Further Market Growth
Although Trump’s endorsement has fueled a fresh rally in digital assets, analysts warn that long-term gains will depend on regulatory clarity and broader economic trends.
Geoff Kendrick, a Standard Chartered analyst, has projected that Bitcoin could surge to $500,000 before Trump leaves office, far surpassing its previous all-time high of $109,071.
Regulatory filings indicate that hedge funds continue to be the largest institutional investors in digital assets, though banks and sovereign wealth funds are gradually increasing their exposure. Quarterly reports also reveal growing institutional interest in Bitcoin exchange-traded funds (ETFs).
There is ongoing debate among analysts regarding whether the reserve could be structured through the U.S. Treasury’s Exchange Stabilization Fund, traditionally used for managing foreign currencies, or if formal congressional approval would be necessary.
The Future of Crypto in U.S. Policy
Trump’s latest initiative represents a dramatic shift from his past skepticism of cryptocurrencies. While his support for a Crypto Strategic Reserve has boosted market optimism, industry experts are eagerly awaiting further details on its implementation and regulatory impact.
