This wasn’t just talk. The announcement followed an Executive Order signed in January that directed a Presidential Working Group to evaluate the potential reserve.
Though the order didn’t explicitly mandate creating the reserve, it built on campaign promises and called for studying a digital asset stockpile. Politics as usual, but with a crypto twist.
Markets went absolutely nuts. A $300 billion global crypto rally followed, with XRP, SOL, and ADA prices surging up to 60%.
Bitcoin reversed earlier losses and climbed above $93,000. Trading volumes exploded. Crypto bros couldn’t contain themselves.
Not everyone’s thrilled though. Industry reactions were mixed at best.
Coinbase CEO Brian Armstrong thinks a Bitcoin-only reserve makes more sense. Cardano founder Charles Hoskinson defended XRP’s inclusion. Bitwise executives straight-up criticized the altcoin selections. The debate rages on about government favoritism and market biases.
The U.S. already holds about $17 billion in Bitcoin, mostly seized from criminals.
The new plan would transform this passive stockpile into an active strategic reserve. Different approach, same government.
Trump’s announcement positions him firmly as a pro-crypto president, contrasting with what he called “corrupt attacks” by the Biden Administration.
It aligns with Senator Cynthia Lummis’ push for a Bitcoin reserve, though state-level efforts face challenges.
Globally, this move puts America at the forefront of the digital asset space.
It could influence other countries’ crypto policies, impact market dynamics, and challenge traditional financial norms.
Game-changing? Maybe. A guaranteed crypto rollercoaster? Absolutely.
Each cryptocurrency’s contribution to the reserve will depend on its market capitalization calculation, multiplying current price by circulating supply to determine relative value.
