After Donald Trump’s latest announcement about a national crypto reserve, the cryptocurrency market went through a huge crash, losing $300 billion in value. With his promise to make the US the “Crypto Capital of the World,” the former president sent shockwaves through the financial world and caused considerable gains in significant digital assets.
Trump Strategic Reserve Causes Market Frenzy
Trump announced his crypto strategic reserve on Truth Social on March 2. This project tells the Presidential Working Group on Digital Assets to build up a national stockpile of Bitcoin, Ethereum, XRP, Solana, and Cardano. Unlike earlier plans that only kept Bitcoin reserves, this strategy calls for actively building up Bitcoin reserves, strengthening the US’s position in digital finance.
Crypto Prices Soar After Announcement
When the news came out, the market responded wildly:
- Bitcoin (BTC) price went up 8% and over $93,000.
- Ethereum (ETH) went up 11%.
- XRP (XRP) went up 28% and now has a market cap of $163.9 billion, making it the third-largest cryptocurrency after USDT.
- The price of Solana (SOL) went up 20%.
- Cardano (ADA) was the first to rise, rising 66%.
These wins raised the market value by $300 billion, which made investors even more confident.
Crypto Community Reactions Mixed
While the move has caused excitement, it has also caused debate in the crypto world. Because it is decentralized and safe, some investors and analysts say Bitcoin should be the only main reserve asset. Others are worried that the government’s control of a coin reserve could hurt the US dollar or be flexible in the event of future political changes. Even though there is much uncertainty, Republican senators have praised the effort.
Coming Next for Crypto Investors
Even though prices are going up, the Crypto Fear & Greed Index is still in the “Fear” zone at 33. This means that traders are still thinking about what will happen in the long run if the government gets involved in crypto.
Conclusion
Trump’s crypto strategic reserve has caused market changes like never before, adding $300 billion in value and changing the way money works. Even though people are excited, there is still doubt, which makes the next steps in US crypto policy very important.
