Trump Crypto Reserve Plan to Include These 5 Cryptocurrencies

In the summer of 2024, Senator Cynthia Lummis introduced a bill about creating a Bitcoin strategic reserve to boost local economies and financial systems. This idea came into reality with the arrival of the pro-crypto, Donald Trump, to the presidential office.

The strategic reserve plan for cryptocurrencies aims to integrate digital assets into the US financial framework. It signals a massive shift in government policy toward cryptocurrencies and an attempt to recover the national economy.

While the initial announcement included Bitcoin as the main asset in the collective, Trump has updated us with the full lineup, including BTC, ETH, XRP, ADA, and SOL. Let’s dive deeper into the Trump crypto reserve plan news.

5 Coins in Trump Crypto Reserve Plan

On 2 March, Trump updated his social media platform, Truth, introducing Solana, Ripple, and Cardano, in addition to Bitcoin and Ethereum. This lineup combines historically reliable coins with solid altcoins that have developed consistently over the last few years.

• Bitcoin (BTC): The first and largest cryptocurrency by market capitalization, often called digital gold.
• Ethereum (ETH): A leading platform for developing decentralized applications and creating smart contracts.
• Ripple (XRP): Developed by Ripple Labs, XRP facilitates real-time cross-border payments with a sophisticated blockchain network.
• Solana (SOL): Known for its robust blockchain that supports decentralized applications, projects, and high-speed processing.
• Cardano (ADA): A well-established blockchain platform focused on security and sustainability for decentralized apps and systems.

Overview

Trump’s pro-crypto stance is a proactive approach to embracing digital currencies into traditional infrastructure and institutions. By incorporating top blockchain assets into a crypto reserve holding, the administration aims to bolster the country’s position in the rapidly evolving crypto space.

This move is part of a broader strategy to support the crypto industry and lead blockchain breakthrough, which has faced regulatory challenges under the previous administration. Ultimately, Trump wants to outpace China in Web 3.0 and DeFi technology.

How Did Crypto Markets React?

The Trump announcement initially spurred a surge in cryptocurrency prices. Bitcoin’s value rose by over 11%, reaching approximately $94,164, while Ethereum saw a 13% increase to around $2,516. The total cryptocurrency market capitalization expanded by about 10%, adding over $300 billion in value shortly after the news broke.

Cardano jumped from $0.65 to over $1 in one day, peaking at $1.19 on 2 March, while Ripple also rose around 35% from $2.15 to $3.00 in one day. Solana also surged from $140 to $175, recording a massive 25% growth.

However, this bullish momentum was short-lived. In the following days, cryptocurrencies such as ADA, XRP, and SOL experienced significant declines, each correcting by approximately 21% and erasing the gains made post-announcement.

Final Remarks

The Trump crypto reserve plan marks a pivotal moment in the intersection of traditional finance and modern digital assets. This establishment aims to recover the US economy and pay off the national debt using the massive growth of most cryptos.

Analysts offer mixed views; some view it as a “strategic” bullish signal, anticipating increased institutional adoption and regulatory clarity. Conversely, others express concerns regarding its feasibility and necessity, cautioning against exposing public funds to market volatility.