Crypto Market Surges $300B Following Trump’s Crypto Strategic Reserve Announcement

The cryptocurrency market saw a massive surge of $300 billion in value following President Donald Trump’s announcement of a U.S. crypto strategic reserve. The news, shared on Truth Social on March 2, outlined his commitment to making the U.S. “the Crypto Capital of the World” and introduced an executive order for the Presidential Working Group on Digital Assets to establish a national crypto reserve. The reserve will include Bitcoin, Ethereum, XRP, Solana, and Cardano.

In response to the announcement, Bitcoin saw a significant 8% gain, surpassing $93,000, while Ethereum rose 11%. Other altcoins experienced even larger increases, with Cardano skyrocketing 66%, Solana rising 20%, and XRP soaring 28%. XRP’s surge pushed its market capitalization to $163.9 billion, overtaking USDT to become the third-largest cryptocurrency.

Trump’s revised plan for a crypto strategic reserve contrasts with his previous notion of merely holding Bitcoin in stock. A strategic reserve implies actively accumulating cryptocurrencies, which has generated mixed reactions in the crypto community. Some argue that Bitcoin, with its security and decentralization, should be the sole asset in the reserve, while others worry that government control over such a reserve could weaken the dollar and be susceptible to political shifts.

The announcement was positively received by Republican senators, who see it as a move for the U.S. to maintain a leading role in the global financial system and counterbalance China’s dominance with its digital yuan.

Despite the surge, the Crypto Fear & Greed Index remains in the “Fear” zone at 33, showing that traders are cautiously optimistic and weighing the long-term implications of government involvement in the crypto space.

As the market reacts to this announcement, investors are now awaiting further details from the upcoming crypto summit, where more specifics on the reserve, potential policy revisions, and regulatory updates will likely be revealed.