President Trump revealed 5 cryptocurrencies that will be included in the new strategic reserve of the United States, causing the market value of these coins to surge.
In a post on Truth Social, U.S. President Donald Trump first shared information about the cryptocurrencies expected to be included in the Strategic Cryptocurrency Reserve, including $BTC (Bitcoin), $ETH (Ethereum), $XRP (Ripple), SOL (Solana), and ADA (Cardano). This information had not been mentioned previously.
"And clearly, BTC and ETH, as well as other valuable cryptocurrencies, will be at the center of the reserve," Mr. Trump added a new status more than an hour later.
Immediately after the announcement of the U.S. President, the value of the aforementioned coins quickly surged. Bitcoin rose over 11% to 94,164 USD; Ethereum increased by about 13% to 2,516 USD while other digital assets also saw price increases.
The total market capitalization of cryptocurrencies has increased by about 10%, equivalent to more than 300 billion USD, according to CoinGecko.
This move signals a shift towards active participation in the cryptocurrency economy by the U.S. government and could potentially boost institutional acceptance, providing regulatory clarity and reinforcing the U.S.'s leadership position in digital asset innovation, Mr. Federico Brokate, Managing Director of 21Shares, commented.
From an analytical perspective, Mr. James Butterfill - an analyst at CoinShares, expressed his surprise at seeing digital assets other than bitcoin included in the reserve.
"Unlike bitcoin, these assets are more akin to technology investments. This announcement signifies a more friendly stance towards the vast cryptocurrency technology space, not overly focused on the fundamentals of this asset," he commented.
According to the plan, the U.S. will hold its first cryptocurrency summit at the White House on March 7. However, it is still unclear how the U.S. cryptocurrency reserve will be established and operated.
Analysts and legal experts are still divided on whether a law from the U.S. Congress is needed to establish the reserve. Some others believe that the reserve could be created through the U.S. Treasury's foreign exchange stabilization fund, which could be used to buy or sell foreign currencies.
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