Trump announces five cryptocurrencies for a U.S. strategic reserve, boosting their market prices significantly.

In Short

President Trump announced a strategic reserve for five cryptocurrencies, boosting their market values significantly. The move reflects his campaign support from the crypto sector and hints at increased governmental engagement with digital assets.

U.S. President Donald Trump announced five cryptocurrencies he plans to include in a new strategic reserve, causing significant market increases.

On March 2, Trump revealed on Truth Social that bitcoin, ether, XRP, solana, and cardano would form part of this reserve, a plan originating from his January executive order on digital assets. He emphasised that bitcoin and ether would be central to the reserve.

Following the announcement, bitcoin rose over 10% to $92,459, while ether increased by about 11% to $2,456. XRP, associated with Ripple Labs, has gained attention as the company invests in pro-crypto political action committees.

Institutional adoption

Industry analysts view Trump’s move as indicative of increased governmental engagement with cryptocurrencies, potentially boosting institutional adoption and regulatory clarity. Notably, the inclusion of diverse digital assets has surprised some experts, suggesting a broader perspective on crypto technology.

Trump is capitalising on support from the crypto sector in his 2024 presidential campaign and is set to host the first White House Crypto Summit. His administration has seen a relaxation of regulatory scrutiny compared to the previous administration, which focused on consumer protection.

Despite recent declines in cryptocurrency prices affecting market sentiment, analysts anticipate potential recovery linked to U.S. Federal Reserve actions. Speculation also surrounds whether Congress will need to legislate for the establishment of the reserve.