Trump Announces Creation of Crypto Reserve as Bitcoin and Others Surge

US President Donald Trump has announced the creation of a Crypto Reserve, aiming to position the US as the “Crypto Capital of the World.” The reserve will include Bitcoin, Ethereum, XRP, Solana, and Cardano. Following the announcement, many cryptocurrencies surged, with some seeing increases of up to 60%. However, Bitcoin has also faced significant declines in February, raising questions about market stability as the first White House Crypto Summit approaches.

In a bold move, US President Donald Trump declared the formation of a Crypto Reserve, positioning the country as the potential “Crypto Capital of the World.” Trump made the announcement late Sunday on his social media platform, Truth Social. The reserve is set to include five prominent cryptocurrencies: Bitcoin, Ethereum, XRP, Solana, and Cardano, giving a significant nod to the evolving digital finance landscape.

In his post, Trump emphasized the importance of this initiative, mentioning, “A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration.” The statement links his Executive Order on Digital Assets to the creation of this reserve, which aims to include key players like XRP, SOL, and ADA.

Following the announcement, the market reacted energetically. Cardano, Solana, and XRP soared up to 60%, while Bitcoin and Ethereum each saw increases of over 10%. Bitcoin bounced back from a recent drop, trading at $94,343.82. Ether leaped 13% to settle at $2,516, reflecting high investor sentiment across numerous cryptocurrencies.

Despite the excitement, how the Crypto Reserve will operate is still murky. More details are anticipated from the upcoming White House Crypto Summit on Friday. Trump’s previous executive order on digital assets spoke of a “national digital asset stockpile,” yet it left specifics vague, raising questions about the future framework.

This announcement signals a notable shift in policy. Historically, US regulators have been apprehensive about cryptocurrencies. However, Trump’s latest move points to a newfound recognition of digital assets as tangible financial tools, indicating a broader acceptance of blockchain technologies.

The choice of cryptocurrencies for the reserve highlights their popularity and efficiency. These attributes bolster confidence in their role within this newly proposed reserve. Yet, despite the spike following Trump’s announcement, Bitcoin has been reeling from a 17.5% decline throughout February, marking its steepest drop since June 2022.

After peaking at $109,071 in mid-January, Bitcoin touched a recent low of $78,273 on Friday but ended February near $84,252. This volatility appears to be driven by various factors, including market uncertainty, fears of an international trade conflict, and a waning optimism regarding Trump’s pro-crypto approach after the election.

Trump’s announcement of a Crypto Reserve seems to mark a pivotal point in the US government’s relationship with cryptocurrencies. As popular currencies like Bitcoin, XRP, and Cardano see significant surges, the overall crypto market responds to this potential new direction. While questions remain about operational details, the sentiment is shifting toward embracing digital assets. However, ongoing volatility could temper the excitement as Bitcoin struggles with its recent downturn.

Original Source: www.fortuneindia.com