Bitcoin and Ethereum surged Sunday after confirming that Donald Trump will both be included in the planned US crypto sanctuary. In his first post on Truth Social, Trump mentioned XRP, Solana and Cardano, but ruled out Bitcoin, leading to speculation. Hours later, he followed another post, “And obviously BTC and ETH have been revealed so that other valuable cryptocurrencies will be the centre of the reserve. I also love Bitcoin and Etherum!”
The announcement saw Bitcoin price rise nearly 11% to $95,000, recovering from its low of $78,940 on Friday. Ethereum increased its 14% to over $2,500, but fell 11% over the week. Other cryptocurrencies included in Trump’s original post had even bigger spikes. XRP jumped 35% to $2.92, Solana rose 24% to $175, and Cardano jumped 68% to $1.07.
Trump said the preparations were needed to counter what was called the “year of corrupt attacks by the Biden administration.” He pointed to an executive order on digital assets that would command civil servants to move forward with “Crypto Strategic Reserve,” saying “US crypto preparation will boost this important industry.”
Trump has issued several statements about his digital assets in recent months. In December, he told CNBC that the US was working on a Bitcoin strategic reserve, saying, “We don’t want China or anyone else, so we’re going to do something great with cryptography…but others are embracing it and we want to be first.” When asked if the reserve resembled the country’s oil reserve, he replied, “Yes, I think so.”
At 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 is driven by a promise to roll back Biden-era crypto regulations, and markets respond accordingly. After winning the November election, Bitcoin and other major cryptocurrencies rose as traders bet on more crypto-friendly management.
Trump and his family are expanding their involvement in digital assets. In January, he and Melania fired two meme coins. This initially surged before losing more than 80% of its value. His sons, Don Jr. and Eric, lead the world’s Liberty Financial, a crypto platform focused on stable revenue and lending. Meanwhile, Trump Media and Technology Group (TMTG), which operates Truth Social, has taken steps to launch a Bitcoin ETF, competing with companies such as BlackRock and Fidelity.
Market analysts view the creation of cryptocurrency reserves as a key step in the US government’s approach to digital assets. ETF publisher Federico Brokate 21Shares calls it a “vital moment” for the industry. Details remain unknown, but the market has already responded strongly, with Bitcoin exceeding $90,000 shortly after Trump’s post.