Crypto on bull run as Trump announces reserve tokens

In a bid to reshape the United States (US) crypto policy, US President Donald Trump released the names of popular cryptocurrencies, which he intends to add to a newly created ‘crypto strategic reserve’. As per reports, Donald Trump wants to add five cryptocurrencies to the reserve, which has resulted in a sharp increase in their values.

Taking to social media, Trump announced that under one of his executive orders, the US would form a portfolio of digital assets, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP) and Cardano (ADA). After the announcement, reports revealed that the market capitalisation of the top 100 crypto projects rose by a staggering 7.41 percent because of the ‘hype’ surrounding these assets. 

In mere hours, the Fear and Greed Index value skyrocketed from just 22 to an improved value of 39. The alleviation of fear and, subsequently, the rise in market cap because of Trump’s statement could signal the end of the bear run which cryptocurrencies have been on.

In his own words, Trump intends to "make sure the US is the Crypto Capital of the World," and reports indicate that he is relying on the Presidential Working Group to achieve this feat. Initially, he only mentioned ADA, SOL, and XRP to be part of the reserve; however, in a subsequent post, BTC and ETH were named as key assets that would be placed "at the heart of the reserve."

As of publishing, Bitcoin was in the green, growing by approximately 7 percent in 24 hours and exceeding $92,250. Ethereum (priced at $2389), the second largest cryptocurrency by market cap, surpassed the growth rate experienced by Bitcoin as its growth sat close to 7.5 percent.

Interestingly, Official Trump ($Trump) and Official Melania Meme (Melania) coins were not referenced in Trump’s post. Nonetheless, $Trump witnessed a massive boost as its price surged by a staggering 10.04 percent. However, Melania did not witness any significant gains.

Under the Joe Biden administration, US regulators led a crusade against crypto traders, believing the medium was being used to perpetuate fraud on Americans and launder money. Donald Trump, a Republican, however, had the support of the crypto world during his election campaign in 2024 and, as such, is backing policies that may support crypto trading. 

According to credible reports, Trump’s crypto team intended to form the reserve using digital assets confiscated in law enforcement operations. However, given the decentralized nature of crypto, recovery is unlikely unless the suspect chooses to cooperate.