The cryptocurrency market witnessed a dramatic upswing after former U.S. President Donald Trump endorsed five digital assets as part of a proposed “Crypto Strategic Reserve.” Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) saw double-digit gains following the announcement, pushing the total crypto market capitalization past the $3 trillion mark.
This move signals a significant shift in the U.S. government’s stance on digital assets, with Trump framing the initiative as a step toward securing America’s financial future. Within hours of the announcement, Bitcoin surged by 8%, Ethereum gained 8.3%, and Cardano skyrocketed by 64%, marking one of the most volatile trading sessions in recent months.
Trump’s Crypto Endorsement Sparks Market Surge
On Sunday, President Trump revealed plans to incorporate Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) into the United States’ “Crypto Strategic Reserve.” This initiative aims to position the U.S. as a leader in the burgeoning digital asset space. Following the announcement, the global cryptocurrency market capitalization surged by approximately $100 billion within an hour, surpassing the $3 trillion mark.
Individual Cryptocurrency Performance
- Bitcoin (BTC): The largest cryptocurrency by market capitalization saw its price rise by 8%, reaching approximately $90,828.
- Ethereum (ETH): The second-largest cryptocurrency experienced an 8.3% increase, trading at around $2,409.
- Cardano (ADA): Among the highlighted cryptocurrencies, Cardano led the gains with a 64% surge, reaching $1.07.
- XRP: The digital asset associated with Ripple saw a 25% increase, trading at $2.79.
- Solana (SOL): Solana posted an 18% gain following the announcement.
Market Analysts’ Perspectives
Edul Patel, CEO and co-founder of Mudrex, commented on the development: “The crypto market gained strong momentum as Trump announced the Strategic Crypto Reserve, including tokens like XRP, Solana (SOL), and Cardano (ADA), along with Bitcoin and Ethereum. This move triggered a turnaround in the market, with major coins rising up to 60% in 24 hours. With expectations to drive global adoption of crypto reserves, this move could accelerate mainstream crypto integration as we move towards a digital economy.”
Regulatory Implications and Future Outlook
The establishment of a Crypto Strategic Reserve marks a significant shift in U.S. financial policy, reflecting a more crypto-friendlier stance compared to previous administrations. However, details regarding the implementation and management of this reserve remain unclear. Legal experts are divided on whether Congressional approval is necessary, with some suggesting that the U.S. Treasury’s Exchange Stabilization Fund could be utilized for this purpose.
As the U.S. government moves forward with this initiative, the global financial community will be closely monitoring its impact on cryptocurrency adoption, regulatory frameworks, and market dynamics.