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WASHINGTON: Bitcoin skyrocketed by over 20% on Monday, surpassing $94,000 after weeks of stagnation, following the announcement of Trump’s Crypto Strategic Reserve. The dramatic surge was fueled by U.S. President Donald Trump’s revelation that Bitcoin, Ether, XRP, Solana (SOL), and Cardano (ADA) would be part of a new U.S. strategic reserve for digital assets.
The announcement came through Trump’s Truth Social platform, where he stated, “A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration.” The executive order, signed in January, directed the formation of this reserve to safeguard and elevate key cryptocurrencies.
Initially, Trump’s post excluded Bitcoin (BTC) and Ethereum (ETH), causing disappointment among their supporters. However, an hour later, he clarified that both BTC and ETH would indeed be “at the heart of the Reserve,” reversing the negative sentiment and propelling Bitcoin’s value upward. XRP, SOL, and ADA also saw significant gains, with ADA rising over 63%, SOL by 23%, and XRP by 32% within hours of the announcement.
The strategic reserve aims to establish the U.S. as the “Crypto Capital of the World,” according to Trump. The Presidential Working Group is set to host a summit on Friday with crypto industry leaders to outline the specifics of the reserve. This move marks a stark policy shift, contrasting previous regulatory crackdowns on cryptocurrencies.
Senator Cynthia Lummis had previously introduced a bill to create a strategic Bitcoin reserve, proposing that the U.S. Treasury acquire one million bitcoins over five years. While that proposal stalled, Trump’s executive order has revived hopes of a national crypto reserve.
Analysts suggest that Trump’s Crypto Strategic Reserve could significantly reshape the market, fostering greater institutional adoption and potentially stabilizing cryptocurrency prices in the long term.
