Why crypto prices are on the rise as Donald Trump backs five coins for ‘crypto reserve’ | Business News
After talking about creating a “strategic reserve” of cryptocurrencies during his Presidential bid last year, Donald Trump has for the first time announced five virtual coins he plans to include in the American reserve stockpile – a move which has given a booster shot to the crypto trading market, helping it upend the downward trajectory it seemed to be headed on over concerns around Trump’s uncertain trade decisions.
The market prices of the five coins he named – Bitcoin, Ethereum, XRP, Solana and Cardano – all swiftly jumped after the announcement.
In a post on his social media site Truth Social, Trump said, “A US Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA. I will make sure the U.S. is the Crypto Capital of the World”.
Around an hour later came another post from Trump: “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum.”
Despite the rise and fall in crypto prices, concerns remain around the volatility and potential for perpetuating fraud through cryptocurrencies. Last month, Argentina’s President Javier Milei promoted a crypto meme coin — Libra — on his social media platform, only for the currency to implode in a few hours, which saw Milei backtracking, retail investors losing out, but promoters of the coin cashing tens of millions of dollars.
Milei, who claimed to have no connection with the coin or its promoters, joined the list of world leaders like Donald Trump to get associated with promoting meme coins.
Trump’s announcement gives crypto a boost
Last Friday, Bitcoin fell below $80,000 for the first time since November 2024 (after it crossed $100,000 for the first time ever in December), wiping out nearly all post election gains, primarily due to economic uncertainty over President Trump’s tariff wars with countries around the world.
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Trump’s posts, however, marked a new upward turn for crypto prices, which had dropped sharply since spiking after his election.
Bitcoin was up more than 8%, trading over $90,000 while Ethereum was up more than 10% trading at over $2,000. Other virtual currencies mentioned by Trump gained much more – XRP jumped close to 25%, Solana spiked over 18%, and Cardano ballooned by close to 60%.
As of now, it is unclear how the strategic reserve will work, but clarity is expected later this week when Trump hosts the first Crypto Summit at the White House, expected to take place on Friday.
Crypto on the move
Since the victory of Trump in the United States Presidential elections, the crypto market has picked up, responding to signals that Trump could go easy on the virtual currency.
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It was also anticipated that Trump having Elon Musk — who has long been an advocate for cryptocurrency — as a key adviser could further bolster investors’ belief in bitcoin and other digital virtual assets, even if concerns around conflict of interest remain.
Trump’s pick to lead the Securities and Exchange Commission (SEC), Paul Atkins, is widely considered a cryptocurrency advocate.
The agency has also recently dropped multiple investigations and lawsuits against cryptocurrency firms that alleged securities violations. Among them are investigations against Robinhood and Coinbase. Robinhood CEO Vlad Tenev had earlier said that he made a $2 million donation to Trump’s inaugural campaign fund.
