United States President Donald Trump has confirmed that he will include Bitcoin and Ethereum as part of the United States Crypto Strategic Reserve.
The announcement came after Trump confirmed that Solana, XRP, and ADA will be in the crypto strategic reserve. “And, obviously, BTC and ETH, as other valuable cryptocurrencies, will be at the heart of the Reserve. I also love Bitcoin and Ethereum!,” he said.
Crypto community reacts as tokens surge after Trump announcement
The announcement came in the middle of a market struggle that lasted weeks due to the selling pressures triggered by macroeconomic factors and regulatory uncertainty. The announcement triggered a market-wide rally, with Bitcoin leading the pack with a 5.5% surge to trade above $90,000. Cardano also exploded, crossing above $1, while XRP saw a rally that sent its price to $2.70.
Investors who have been asking for regulatory clarity took the statement as a confirmation. Traders had been growing impatient with the Trump administration’s lack of progress, with most of them waiting on the crypto-friendly promises he made during his campaign.
However, the statement has now changed everything, bringing hope to traders in the industry. “A U.S. 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. I will make sure the U.S. is the Crypto Capital of the World. We are MAKING AMERICA GREAT AGAIN!” Trump said.
The crypto market has been suffering a severe liquidity crisis after the Lazarus group breached Bybit and stole $1.5 billion worth of ETH. Bitcoin led the market decline, dropping from above $97,000 to below $80,000. While the instability persisted, trade wars and escalating tensions also put pressure on the market. February saw the largest single-month withdrawal of capital from spot Bitcoin ETFs, with $3.3 billion in outflows, according to data from Farside UK.
According to Bitwise analysts, this was partly driven by the unwinding of a popular crypto arbitrage strategy known as the cash-and-carry trade, which is buying spot Bitcoin and shorting futures to capture price discrepancies. But as Bitcoin prices fell, traders rushed to close their positions. Bitcoin futures traders were also hesitant to take new positions. Annualized March futures premiums fell to 5.7%, according to a K33 Research report on February 25.