President Trump revealed 5 cryptocurrencies that will be included in the new U.S. strategic reserve, causing the market value of these coins to surge.
In a post on Truth Social, U.S. President Donald Trump shared information for the first time about the cryptocurrencies expected to be included in the strategic cryptocurrency reserve, which includes $BTC (Bitcoin), $ETH (Ethereum), $XRP (Ripple), SOL (Solana), and ADA (Cardano). This information had not been mentioned before.
"And clearly, BTC and ETH, as well as other valuable cryptocurrencies, will be at the center of the reserves," Mr. Trump added a new status more than an hour later.
Immediately after the announcement from the U.S. President, the value of the aforementioned coins quickly rose. Bitcoin increased by more than 11% to 94,164 USD; Ethereum rose by about 13% to 2,516 USD while other digital assets also saw a simultaneous increase.
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 may promote acceptance among organizations, providing regulatory clarity and strengthening the U.S.'s leadership position in digital asset innovation, Mr. Federico Brokate, Business Director of 21Shares, noted.
From an analytical perspective, Mr. James Butterfill - Analyst at CoinShares, said he was surprised to see digital assets outside of bitcoin included in the reserve.
"Unlike bitcoin, these assets are more similar to technology investments. This announcement indicates a friendlier 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 the 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 U.S. congressional law is needed to establish the reserve. Some others believe that the reserve could be created through the U.S. Treasury's exchange stabilization fund, which could be used to buy or sell foreign currencies.
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