The crypto market added $300 billion in value following President Donald Trump’s announcement of a U.S. crypto strategic reserve.
The market reaction came after Trump took to Truth Social on Mar. 2, reaffirming his commitment to making the U.S. “the Crypto Capital of the World.”
His latest executive order directs the Presidential Working Group on Digital Assets to move forward with establishing a national crypto reserve, which will include Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA).
Bitcoin surged 8% in the last 24 hours, breaking above $93,000, while Ethereum jumped 11%. The gains in other altcoins were much greater, with Cardano surging 66% surge, Solana up 20%, and XRP soaring 28%. At $163.9 billion in market capitalization, XRP surpassed USDT to become the third-largest cryptocurrency, according to crypto.news price tracker.
Trump’s plan differs from his earlier notion of a Bitcoin stockpile, in which the US would merely keep its current Bitcoin holdings. On the other hand, a strategic reserve implies a proactive cryptocurrency accumulation. The crypto community is divided about the move.
Because of its security and decentralization, some contend that Bitcoin ought to be the only asset in the reserve. Some worry that a government-controlled cryptocurrency reserve may weaken the dollar and be susceptible to future political changes.
The announcement was welcomed by Republican senators who saw it as a means for the U.S. to ensure plays a leading role in the changing global financial system and to counterbalance China’s digital yuan dominance.
Although it has improved by seven points since Mar. 1, the Crypto Fear & Greed Index remains in the ‘Fear’ zone at 33 despite the rise. The market’s reaction suggests that traders are weighing the long-term effects of government involvement in cryptocurrency ownership with both excitement and caution.
Investors are looking forward to the forthcoming crypto summit, where more details will be revealed, as well as potential policy revisions, regulatory updates, and a clearer framework for the reserve.
