Donald Trump unveils US crypto reserve plan, triggering market volatility

In the lead-up to a White House cryptocurrency summit on March 7, US President Donald Trump took to social media to reveal five digital assets he intends to include in a new US strategic cryptocurrency reserve. The announcement on Sunday triggered a surge in market value for each of the assets.

Trump said in a social media post on Truth Social that his January executive order on digital assets would establish a reserve comprising bitcoin, ether, XRP, solana, and cardano. Until the announcement, the specific names had remained undisclosed. Over an hour later, he clarified: "And, obviously, BTC and ETH, as other valuable cryptocurrencies, will be at the heart of the Reserve."

Market reactions


Bitcoin, the world’s largest cryptocurrency by market capitalisation, surged over 11% to $94,164 on Sunday afternoon, while ether, the second-largest, climbed approximately 13% to $2,516. The total cryptocurrency market capitalisation has jumped by around 10%, adding more than $300 billion in value since Trump’s announcement, according to cryptocurrency data provider CoinGecko.

XRP, the token associated with cryptocurrency company Ripple Labs, has also gained attention.

In recent weeks, cryptocurrency prices have declined sharply, with several major digital assets wiping out nearly all their gains after Trump’s election victory. Bitcoin dipped below $90,000 on February 25.

Analysts cited in a report by Reuters suggest that the market needs a clear trigger to move higher, such as a signal on interest-rate cuts from the US Federal Reserve or a well-defined pro-crypto regulatory framework from the Trump administration.

Regulatory optimism

Trump and certain lawmakers have advocated a "golden age" of regulation for cryptocurrencies, giving them a shot in the arm. The US Securities and Exchange Commission, too, has softened its approach towards platforms such as Coinbase and Robinhood.

Bybit’s cyberattack

Meanwhile, Dubai-based exchange Bybit has suffered one of the largest crypto token thefts in history, losing $1.5 billion.