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“Trump’s Crypto Move: Bitcoin Surges 10%, Cardano Skyrockets 60% as 5 Digital Assets Join Strategic Reserves”

16 August, 2025

In a revelation made on his Truth Social platform, Trump disclosed that the executive order on digital assets he signed in January 2025 would establish a virtual currency reserve, including Bitcoin (BTC), Ether (ETH), XRP, Solana, and Cardano. This is the first time these specific names have been officially announced.

“And, of course, BTC and ETH, as well as other valuable cryptocurrencies, will be central to the reserve,” Trump added in a subsequent post about an hour later.

The cryptocurrency market surged following the news, with Bitcoin, the world’s largest cryptocurrency by market value, rising over 11% to $94,164 USD. Ether, the second-largest cryptocurrency, climbed approximately 13% to $2,516 USD. Notably, Solana surged 20%, XRP rallied over 25%, and Cardano skyrocketed more than 60%.

The overall cryptocurrency market witnessed a 10% increase, equivalent to over $300 billion, according to CoinGecko, a cryptocurrency analysis, and data firm.

Interestingly, the inclusion of XRP, the token of Ripple Labs, in the reserve list is noteworthy. Previously, Ripple had backed a super Political Action Committee (PAC) to influence the November congressional elections in favor of the cryptocurrency industry, as reported by Reuters.

“This move signals a shift towards the US government’s active participation in the digital asset economy,” said Federico Brokate, head of US business at 21Shares, a digital asset investment management company. “It has the potential to drive institutional adoption, provide greater regulatory clarity, and solidify US leadership in digital asset innovation.”

James Butterfill, head of research at CoinShares, a digital asset management firm, expressed surprise at the inclusion of digital assets beyond Bitcoin in the reserve. “Unlike Bitcoin… these assets are more akin to technology investments,” Butterfill remarked. “The announcement indicates a national interest perspective on the broader crypto-technology space, rather than a focus on the underlying characteristics of these assets.”

Trump’s support for the cryptocurrency industry is not surprising. During his 2024 election campaign, he received strong backing from the cryptocurrency community and quickly reciprocated by endorsing their policy priorities. Trump is set to host the first-ever White House Crypto Summit on March 7, and his family has also launched their own coins.

This policy marks a sharp departure from the approach taken by his Democratic predecessor, Joe Biden, whose administration tightened controls over the industry to protect Americans from fraud and money laundering. Under Trump, the Securities and Exchange Commission (SEC) has withdrawn investigations into several cryptocurrency companies and even dismissed a lawsuit against Coinbase, the largest US cryptocurrency exchange.

However, in recent weeks, cryptocurrency prices have been on a downward trend, with some of the biggest coins erasing nearly all the gains made after Trump’s election victory—an event that had triggered euphoria across the industry.

Analysts suggest that the market requires fresh catalysts to sustain its growth, such as indications of Fed interest rate cut plans or a clear pro-crypto regulatory framework from the Trump administration.

Geoff Kendrick, an analyst at Standard Chartered, has set a bold target for Bitcoin to reach $500,000 before Trump’s term ends, an enormous leap from its current all-time high of $109,071 USD.

While hedge funds remain the dominant buyers of cryptocurrencies, regulatory filings in the US suggest that banks and national investment funds are also starting to enter the market. Asset managers increased their allocations to US Bitcoin spot ETFs in the fourth quarter of 2024.

Nonetheless, legal questions surround the new reserve. Analysts and legal experts debate whether a Congressional act is necessary to establish the reserve. Some argue that the reserve could be created through the US Treasury’s Exchange Stabilization Fund, typically used for buying or selling foreign currencies.

Trump’s crypto team had previously considered the possibility of establishing a reserve with cryptocurrencies seized during law enforcement actions, leveraging a potential source of assets already held by the government through forfeitures.

Vu Hao (According to Reuters)

– 09:53 03/03/2025