United States President Donald Trump revealed his preferred list of five digital assets to be included in plans to build a US strategic crypto reserve on Sunday, March 2. The unexpected announcement created a stir in the market, and the value of most digital currencies surged.
According to a post on Trump’s Truth Social, the President stated in a January executive order that cryptocurrencies, such as Bitcoin, Ether, XRP, Solana, and Cardano, could be included in a stockpile of digital assets.
Executive Order on Digital Assets
The cryptocurrencies President Donald Trump included in the list rallied and brought back hope that the Trump Pump was still on and better days could still be ahead. Trump stated in his post saying:
“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 […] I will make sure the US is the Crypto Capital of the World.”
Writing in a follow-up post, the President further stated:
“And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve […] I also love Bitcoin and Ethereum!”
Prices Surge Following Revelation
The price of Bitcoin has declined from last week’s Monday high of $96,500 to a lowly price of $78,258 by Friday of the same week. However, the revelation of the MVP list, which made the highly anticipated US strategic crypto reserve, saw BTC recover by at least 11.50% to close the weekend at $94,270. Pundits now believe that if the recovery continues, Bitcoin could extend its rally to retest the $100K resistance level.
Ethereum, on the other hand, found its support level at around $2,125 Saturday, rising by 13.56% to close above the resistance level of $2,359 Sunday. By the time of writing, the price of ETH was trading at around $2,400. Following Donald Trump’s revelation, the market is hopeful that ETH could extend to its next resistance level, which is around $3,000.
Strategic Reserve vs. Stockpile
Investors are keenly watching the developments following a revelation that Donald Trump will be hosting the first White House Crypto Summit next Friday, where more clues about the direction the US Strategic Crypto Reserve will be taking. It should also be noted that this is the first time the President has spoken about a reserve, not a stockpile. According to experts, creating a US strategic crypto reserve would involve buying crypto in regular installments. At the same time, a stockpile would mean not selling the crypto the government holds.
Donald Trump started courting the crypto vote during the Bitcoin 2024 Conference in Nashville, where he floated the idea of making the US the crypto capital of the world. Wyoming Senator Cynthia Lummis proposed a US strategic Bitcoin reserve during the same event. Speaking about a Bitcoin stockpile, Trump had proposed a system that could:
“Keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future.”
Conclusion
The drumbeats for the US strategic crypto reserve have been beating louder and louder since the election of Donald Trump last November, which helped Bitcoin reach a new all-time high of over $109,000. Efforts are being made in several states to create state-level Bitcoin strategic reserves. The creation of the President’s working group on crypto to weigh the potential creation of a crypto reserve sends the right signals to the crypto community with hopes that it could usher in the golden era of crypto.
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Frequently Asked Questions (FAQs)
What digital assets will make up the US strategic crypto reserve?
The US Crypto Strategic Reserve is expected to hold a wide range of digital assets, including Bitcoin, Ethereum, XRP, Solana, and Cardano.
What does the Bitcoin community feel about the inclusion of altcoins?
The announcement has sparked heated debates within the crypto community. The focus on altcoins has raised eyebrows among Bitcoiners, who fear for their position as the premier cryptocurrency.
How did the market react to the revelation?
The market reacted dramatically, with altcoins like XRP soaring 37%, Solana increasing 23%, and Cardano skyrocketing 68%.
What would be the implication of the proposal?
The crypto industry would become an influential political and financial bloc, while cryptocurrency resistance could alienate digital assets.
Appendix: Glossary of Key Terms
Crypto: A type of digital currency that allows people to make payments directly to each other through an online system.
Crypto strategic Reserve: A stock of a critical resource, held back from everyday use, that can be released during times of crisis
Crypto stockpile: A large accumulated stock of goods or materials, especially one held in Reserve for use during a shortage or other emergency.
Trump-Pump: The Bitcoin price surge driven by investor optimism about Donald Trump’s 2024 election victory and his pro-crypto policies.
References
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