Bitcoin and Ethereum experienced a sharp rise on Sunday after Donald Trump confirmed that both would be included in a planned U.S. crypto reserve.
Bitcoin and Ethereum experienced a sharp rise on Sunday after Donald Trump confirmed that both would be included in a planned U.S. crypto reserve. In his initial post on Truth Social, Trump mentioned XRP, Solana, and Cardano but left out Bitcoin, leading to speculation. Hours later, he followed up with another post, writing, "And, obviously, BTC and ETH, as other valuable cryptocurrencies, will be the heart of the reserve. I also love Bitcoin and Ethereum!"
The announcement pushed Bitcoin’s price up nearly 11% to $95,000, recovering from a low of $78,940 on Friday. Ethereum jumped 14% to over $2,500, though it remains down 11% for the week. Other cryptocurrencies included in Trump’s original post saw even bigger spikes—XRP surged 35% to $2.92, Solana rose 24% to $175, and Cardano led with a 68% jump to $1.07.
Trump said the reserve was necessary to counter what he called "years of corrupt attacks by the Biden administration" on the crypto industry. He pointed to an executive order on digital assets directing officials to move forward with a "crypto strategic reserve," saying, "A U.S. crypto reserve will elevate this critical industry."
Trump has made several statements about digital assets in recent months. In December, he told CNBC the U.S. was working on a Bitcoin strategic reserve, stating, "We're gonna do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead." When asked if the reserve would be similar to the nation’s oil reserve, he responded, "Yes, I think so."
During the Bitcoin 2024 conference last July, Trump said he planned to create a "strategic national Bitcoin reserve" and predicted that Bitcoin could surpass gold’s $20 trillion market capitalization. His campaign promise to roll back Biden-era crypto regulations has fueled optimism in the industry, and the market has responded accordingly. After his election win in November, Bitcoin and other major cryptocurrencies have risen as traders bet on a more crypto-friendly administration.
Trump and his family have been expanding their involvement in digital assets. In January, he and Melania launched two meme coins, which initially spiked before losing over 80% of their value. His sons, Don Jr. and Eric, have been leading World Liberty Financial, a crypto platform focused on stablecoin-based earnings and lending. Meanwhile, Trump Media and Technology Group (TMTG), which runs Truth Social, has taken steps toward launching a Bitcoin ETF, putting it in competition with firms like BlackRock and Fidelity.
Market analysts see the creation of a crypto reserve as a major step in the U.S. government’s approach to digital assets. Federico Brokate of ETF issuer 21Shares called it "a pivotal moment" for the industry. While details remain unclear, the market has already reacted strongly, with Bitcoin surging above $90,000 immediately after Trump’s post.
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