Trump sends crypto prices on a short-lived surge after announcement of
strategic government reserve
[March 04, 2025] By
ALAN SUDERMAN
Cryptocurrency prices briefly jumped after President Donald Trump's
surprise announcement he wants the U.S. government to purchase and hold
a variety of digital assets in a strategic reserve fund, an announcement
that highlights Trump's growing attempts to use volatile cryptocurrency
prices as a barometer of his public support.
Trump said on social media Sunday that his administration is working
toward creating a “Crypto Strategic Reserve” that will include
lesser-known cryptocurrencies XRP, solana, and cardano. He later
followed up with another post saying his planned reserve would also
include bitcoin and ether, the two most popular cryptocurrencies.
The announcement helped crypto prices enjoy a brief rebound after recent
sell-offs. Bitcoin shot up to about $95,000 after dipping below $80,000
last week. XRP, solana and cardano saw massive spikes in their prices
after Trump's announcement Sunday.
But by Monday afternoon, prices had fallen roughly back to where they
were before Trump's announcement. U.S. stocks also fell sharply Monday
after Trump confirmed plans to impose 25% tariffs on imports from Canada
and Mexico.
Advocates for the government holding a crypto reserve said would help
diversify government holdings and hedge against financial risks. Critics
say the volatility of cryptocurrencies makes them a poor choice as a
reserve asset.
On the campaign trail, Trump pledged support for a “strategic national
bitcoin” stockpile, which would include bitcoin the U.S. government has
previously seized in law enforcement actions. Sunday's announcement was
the first time he advocated for the government to hold other types of
cryptocurrencies.
The inclusion of cryptocurrencies other than bitcoin is likely to face
sustained pushback among some corners of the heavily divided
cryptocurrency industry. Bitcoin is the oldest and by far most popular
cryptocurrency, and accounts for more than half of the world’s global
crypto market cap.
Some of Trump's major allies in the industry expressed surprise and some
skepticism of Trump's plan.
“Just bitcoin would probably be the best option - simplest, and clear
story as successor to gold,” said Brian Armstrong, the CEO of the crypto
exchange Coinbase.
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President Donald Trump speaks at the National Prayer Breakfast at
the Capitol in Washington, Feb. 6, 2025. (AP Photo/Evan Vucci, File)
 The White House did not immediately
provide additional details, including how much of each type of
cryptocurrency Trump wanted the U.S. to hold, and how the government
would acquire them, and whether he favored including other types of
cryptocurrencies as well.
Eric Trump, the president's son, said the price
spikes validated the recent advice he's made on social media to
stock up on crypto assets. “Hopefully, I made someone's life just a
little bit better," he posted on social media.
The president has cast himself as hero to the crypto industry, which
he said in his announcement had been the target of “years of corrupt
attacks by the Biden administration." The crypto industry felt
unfairly targeted by the Biden administration and spent heavily to
help Trump win election. The first several weeks of his
administration have seen several moves to boost crypto, including
ending or pausing high-profile enforcement actions by the Securities
and Exchange Commission.
Crypto prices soared after Trump's victory last year, and when the
price of bitcoin first crossed $100,000 in early December, Trump
took credit and posted "YOU’RE WELCOME!!!" on social media.
But prices have fallen since Trump's inauguration and Trump has
faced criticism, including from allies within the crypto industry,
for helping launch a personal meme coin just before he took office
that has since collapsed in value. The crash of meme coins linked to
First Lady Melania Trump and Argentine President Javier Milei, along
with a massive hack of a major cryptocurrency exchange that the FBI
has said was done by North Korea, have also dimmed enthusiasm for
crypto.
“Why is crypto in the toilet if Trump is crypto king?" Dave Portnoy,
an influencer and crypto enthusiast, said on social media last week.
In addition to his announcement Sunday, Trump has also recently
announced he will speak at and host industry leaders on Friday at a
White House “Crypto Summit.”
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