Trump Announces US Crypto Strategic Reserves, Bitcoin And Ethereum Prices Soar

The President of the United States, Donald Trump, announced five digital assets that will be included in crypto strategic reserves (photo: x @POTUS)

JAKARTA - The President of the United States, Donald Trump, announced five digital assets that will be included in the new US crypto strategic reserve on Sunday, March 2 through his Truth Social account. The statement immediately prompted a surge in market value from each of the digital assets mentioned.

Trump stated that his executive order in January regarding digital assets would create cryptocurrency reserves that include Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). Previously, this list of digital assets had never been officially announced.

More than an hour after the initial announcement, Trump added: "And, of course, BTC and ETH, as other valuable cryptocurrencies, will be at the heart of Reserves."

Bitcoin, which is the largest cryptocurrency by market cap, jumped more than 11% to reach 94,164 US dollars (Rp1.56 billion) on Sunday afternoon. Meanwhile, Ethereum rose about 13% to US$2,516 (Rp41.7 million). Overall, crypto market capitalization increased by around 10%, or more than US$300 billion (Rp4,974 trillion), within hours of Trump's announcement, according to data from CoinGecko.

XRP, one of the assets Trump mentioned, is a token owned by the company Ripple Labs. Previously, Ripple had supported Super PAC to influence US congressional elections in the interest of the crypto industry.

Federico Brokate, head of US business at digital asset investment firm 21Shares, sees this move as a signal that the US government will be more active in the crypto economy. "This has the potential to accelerate institutional adoption, provide greater regulatory clarity, and strengthen US leadership in digital asset innovation," he said.

Meanwhile, James Butterfill, head of research at CoinShares, said he was surprised by the inclusion of digital assets other than Bitcoin in the reserve. "Unlike Bitcoin, these assets are more like technology investments," Butterfill said.

Trump himself has strong support from the crypto industry in the 2024 election campaign, and since returning to the White House, he has moved quickly to support the industry's side policies. He is also scheduled to hold the first White House Crypto Summit on Friday, March 7. In addition, his family is reported to have launched their own crypto coins.

Under the leadership of the former Democratic President, Joe Biden, US regulators have tightened surveillance of the crypto industry on the grounds of protection against fraud and money laundering. However, the Trump administration has taken steps differently by withdrawing investigations into several crypto companies and even overturning a lawsuit against Coinbase, the US's largest crypto exchange.

However, in recent weeks, the price of crypto assets has decreased sharply. Some major digital currencies have even removed almost all the profits they have made since Trump's victory in the 2024 election.

Analysts think that the market needs a new push to move higher, such as a lower interest rate policy than the Federal Reserve or a clearer pro-crypto regulation than the Trump administration.

According to a Reuters report, Geoff Corn, analyst at Standard Chartered, predicts the price of Bitcoin could reach US$500,000 (Rp8.29 billion) before Trump completes his term of office. Currently, the record high price of Bitcoin is US$109,071 (Rp1.81 billion).

Regulation data in the US shows that apart from a hedge fund, banks and state investment funds are now also starting to buy crypto assets. In its latest quarterly financial report, it was noted that asset managers increased their allocation to Bitcoin-based ETFs in the fourth quarter of 2024.

However, there is still debate among analysts and legal experts over whether the establishment of this strategic reserve requires approval from the US Congress. Some argue that this reserve can be created through the US Treasury Department's Exchange Stabilization Fund, which allows the purchase or sale of foreign currencies.

Trump's crypto-work group is also reportedly considering building the reserves using crypto assets that have been seized in law enforcement operations.

With this new policy, it appears that the Trump administration will bring a new direction to the crypto industry in the United States, with a more friendly approach to digital assets and blockchain innovation.