Crypto Market Gains $330 Billion in Four Hours After Trump’s Announcement

The cryptocurrency market surged by $330 billion in just four hours after President Donald Trump revealed plans for a US Crypto Reserve. 

The announcement on Truth Social outlined a strategy to include Bitcoin, Ethereum, Solana, XRP, and Cardano in the reserve. The market reaction was immediate, with Bitcoin shorts liquidating $160 million, according to data from Coinglass.

Trump announces US Crypto reserve

Trump confirmed that his Executive Order on Digital Assets had directed the Presidential Working Group to develop a Crypto Strategic Reserve. He emphasized that Bitcoin and Ethereum would be central to this initiative, naming Solana, XRP, and Cardano as part of the plan. The president reiterated his commitment to making the United States the global leader in cryptocurrency.

Trump presented his Bitcoin national reserve concept to attendees at the Nashville Bitcoin Conference in July 2024. At the time of his initial discussion about Bitcoin he restricted his remarks to Bitcoin alone. Trump brings a new strategy to his digital currency plan by including various digital assets in addition to Bitcoin.

Bitcoin surges to $94K as Altcoins rally

Following Trump’s announcement, Bitcoin’s price spiked by over 10%, reaching $94,000. Ethereum saw an 11% rise to $2,500, while Solana jumped 20% to $169. XRP surged 30% to $2.80, and Cardano experienced the most significant gain, climbing 60% to $1.02, per CoinGecko data.

This rally comes after a period of market downturns. Bitcoin, which started the year at $109,000, had recently fallen below $80,000 due to risk asset sell-offs and a security breach at Bybit that led to a $1.5 billion loss.

White House to host Crypto summit

The White House Crypto Summit remains scheduled to occur on Friday as announced by Trump. This meeting will unite the Winklevoss twins with Coinbase CEO Brian Armstrong, Ripple’s Brad Garlinghouse, and Cardano founder Charles Hoskinson.

Discussions will focus on how the US Crypto Reserve will be funded. One option is utilizing the government’s Bitcoin holdings, which total over 180,000 BTC worth approximately $18 billion. Historically, these assets have been auctioned, but whether the administration will retain or acquire more remains unclear.

BitMEX founder Arthur Hayes expressed disagreement with the plan because it needed Congressional funding support unless Congress approved extra financial backing. The inclusion of altcoins in the transition plan received criticism from economist Peter Schiff because Bitcoin works as a digital gold reserve yet XRP along with other assets do not justify their addition.

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