On March 2, U.S. President Donald Trump officially announced on social media that the United States will establish a strategic cryptocurrency reserve, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and ADA (Cardano). Following this announcement, the cryptocurrency market surged, increasing its overall market value by more than $300 billion within just three hours.
Bitcoin Leads the Surge, Market Reacts Quickly
As the news spread, Bitcoin's price quickly soared past $94,000, reaching its highest level in recent years and only 16% away from its all-time high. At the same time, other cryptocurrencies also saw significant gains, with Ripple skyrocketing by 33%, Solana rising by 22%, and ADA surging by 60%.
Trump stated on social media that the Biden administration had unfairly suppressed the cryptocurrency industry for years, but he would ensure that the U.S. becomes the global hub for cryptocurrency. He specifically mentioned that Bitcoin and Ethereum would be the core assets of the strategic reserve.
This marks the first time Trump has explicitly stated that the U.S. government will not only refrain from selling its existing cryptocurrency holdings but will also actively and regularly purchase more digital assets. This stance has heightened market expectations regarding the U.S. government's official entry into the cryptocurrency sector.
Significance of the Strategic Reserve
Industry experts believe that the likelihood of the U.S. government actually purchasing Bitcoin is higher than previously expected. Cryptocurrency analyst MacroScope noted that Trump's move signals strong policy support for cryptocurrencies, not just verbal promises. If there were no favorable policy environment, such an announcement would not have been made.
As early as January 16, The New York Post reported that Trump planned to establish an “America First” cryptocurrency reserve, prioritizing investment in U.S.-created cryptocurrencies such as Solana, USD Coin (USDC), and Ripple (XRP). However, Trump later clarified that Bitcoin and Ethereum would remain the core of the strategic reserve.
Upcoming Cryptocurrency Summit—More Positive Developments Expected
Trump’s cryptocurrency advisor David Sacks revealed that on March 7, Trump will host the first-ever cryptocurrency summit at the White House, where additional cryptocurrencies may be added to the reserve list. Tesla CEO Elon Musk previously suggested that the U.S. government could use blockchain technology to manage its financial expenditures. If implemented, this could place the entire $6.9 trillion annual government budget on a blockchain, increasing transparency and reducing audit costs.
Notably, Trump initially proposed that the U.S. government purchase between 2.2 million and 4 million Bitcoins, but the scope of the strategic reserve has now expanded to other cryptocurrencies without clear reasoning.
Latest Developments in U.S. Government Support for Cryptocurrency
Currently, the U.S. government has taken several steps to support the cryptocurrency industry, including:
The Securities and Exchange Commission (SEC) is now led by crypto-friendly officials.
A pro-cryptocurrency president is in office.
The formal announcement of a strategic cryptocurrency reserve.
The SEC has dropped multiple lawsuits against cryptocurrencies.
Trump has launched his own memecoin.
The SEC has ruled that memecoins are not securities.
These moves make Trump’s administration the most crypto-friendly government in U.S. history.
Trump’s Long-Standing Vision for a Strategic Cryptocurrency Reserve
Since his 2024 presidential campaign, Trump has repeatedly discussed the idea of a strategic cryptocurrency reserve. In January, shortly after taking office, he signed an executive order directing federal agencies to assess the feasibility of establishing a national digital asset reserve and to move forward with related plans.
Senator Cynthia Lummis also introduced a bill proposing that the U.S. purchase 1 million Bitcoins over five years, accounting for 5% of Bitcoin’s total supply. She first introduced this idea at the “Bitcoin Nashville Conference” in July 2023, where Trump, then a presidential candidate, also gave a speech in support of cryptocurrency.
Solana, Ripple, and Trump’s Connections
Interestingly, Trump’s cryptocurrency advisor David Sacks is an investor in Multicoin Capital, a firm that has invested in Solana. Solana is known for its fast transaction speeds and low fees, making it one of the most promising blockchain ecosystems. Additionally, Trump’s memecoin, TRUMP, is built on the Solana blockchain.
Meanwhile, Ripple has been engaged in a long-running legal battle with the SEC. However, in recent months, Ripple has strengthened its political influence in Washington, contributing significant donations to cryptocurrency-related political organizations and Trump’s 2025 inauguration fund.
The Trump administration’s latest action signifies a major shift in the U.S. stance on cryptocurrencies. With the establishment of a strategic reserve, improved regulatory policies, and increasing support, the U.S. is moving toward becoming the global center for digital assets.
As the upcoming White House cryptocurrency summit approaches, the market may experience further positive developments, driving Bitcoin and other digital assets even higher. If the U.S. government begins large-scale Bitcoin purchases, the cryptocurrency market could enter an unprecedented bull run.
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