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The crypto market has surged by more than half a trillion dollars after Donald Trump announced the names of five cryptocurrencies that would be included in a US strategic reserve.
In a post to Truth Social on Sunday, the US president said that bitcoin (BTC), ether (ETH), XRP, solana (SOL) and cardano (ADA) will be used in the reserve, which he claimed would make the US “the Crypto Capital of the World”.
All five cryptocurrencies jumped in value following the announcement, taking the overall crypto market cap back above $3 trillion after more than a week of losses.
“A US Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA,” Trump wrote in a post to Truth Social.
“I will make sure the US is the Crypto Capital of the World… And obviously BTC and ETH, as other valuable cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum.”
More details about the strategic reserve will be revealed on Friday, when Trump hosts the first Crypto Summit at the White House.
Crypto industry figures have said the creation of a strategic reserve could trigger a “crypto arms race”, as other countries attempt to keep up with the world’s leading economy.
“Other nations will likely feel compelled to respond, and in doing so, bitcoin and the wider cryptocurrency market are primed for unprecedented gains,” said Nigel Green, chief executive of the financial advisory firm deVere Group.
“This move cements the legitimacy of digital assets in a way that will redefine global finance, with bitcoin potentially soaring to all-time highs of $200,000 by the end of 2025, we predict.”
Bitcoin shot up from $85,000 t0 $95,000 in the hours following Trump’s announcement, but has since retreated to $92,000.
It remains a long way off the record highs above $109,000 in late January, which were brought about by optimism surrounding Trump’s inauguration, and his promise to be the first ever “crypto president”.
He first floated the idea of a crypto strategic reserve during his presidential campaign, when he told the audience at the Bitcoin 2024 conference in Nashville that it could be funded by assets seized in law enforcement actions.
