U.S. President Donald Trump’s announcement on Sunday that five cryptocurrencies will be included in the United States’ new strategic cryptocurrency reserve has reignited investment enthusiasm in the crypto industry. Trump said in a post on his own TruthSocial that his January executive order on digital assets will establish currency reserves including Bitcoin, Ethereum, Ripple, Solana and Ada. The lists have not previously been published.


He also said in a subsequent post: "Obviously, Bitcoin and Ethereum will be the core of this currency reserve."

In January of this year, Trump signed an executive order to establish a working group dedicated to studying digital assets. The task force is tasked with assessing the feasibility of establishing a national digital asset reserve and developing a clear regulatory framework for the crypto industry. When signing the executive order, Trump did not specify any digital assets.

After the relevant news came out, the cryptocurrencies named by Trump all rose. On Sunday afternoon, the price of Bitcoin, the world's largest cryptocurrency by market capitalization, once rose by US$10,000 to reach US$95,000. Ethereum, the second largest cryptocurrency by market capitalization, once rose about 13% to above $2,500. Ripple soared by 33%, Solana jumped by 22%, and Ada rose by more than 60%.


In the hours after Trump’s announcement, the total cryptocurrency market rose by about 10%, or more than $300 billion, according to cryptocurrency data and analytics firm CoinGecko.

What do analysts think?

“This move signals a shift by the U.S. government to actively participate in the crypto economy,” said Federico Brokate, head of U.S. operations at digital asset investment management company 21Shares. “It has the potential to accelerate institutional adoption, provide greater regulatory transparency, and strengthen U.S. leadership in digital asset innovation.”

James Butterfill, director of research at asset management firm CoinShares, said he was surprised that digital assets other than Bitcoin were included in reserves.

"Unlike Bitcoin...these assets are more like technology investments," Butterfill said. “This statement demonstrates that (Trump) is taking a more patriotic stance on the broader crypto space with little regard for the fundamental qualities of these assets.”

Unlike the Biden administration's crackdown on digital assets, Trump expressed support for establishing a U.S. strategic Bitcoin reserve during the campaign and vowed to make the United States a "cryptocurrency capital." Trump was once a cryptocurrency skeptic but changed his tune as the industry swung behind his campaign.

Under Trump, the U.S. Securities and Exchange Commission (SEC) withdrew its investigations into several cryptocurrency companies and dropped its lawsuit against Coinbase, the largest U.S. cryptocurrency exchange. The White House will hold its first cryptocurrency summit on March 7, and Trump will deliver a speech.

Cryptocurrency prices have fallen sharply in recent weeks, reversing an earlier upward trend, with some of the largest digital currencies wiping out nearly all of their gains after Trump’s election sparked a frenzy in the crypto world.

Analysts say the cryptocurrency market needs a reason to rise, such as signs that the Federal Reserve plans to cut interest rates or that the Trump administration introduces a clear regulatory framework to support cryptocurrencies.

Standard Chartered analyst Geoff Kendrick predicts that the price of Bitcoin will reach $500,000 before Trump leaves office.

U.S. regulatory filings show that while hedge funds remain the main buyers of cryptocurrencies, banks and sovereign wealth funds are also buying. The asset manager increased allocations to U.S. ETFs tied to Bitcoin spot prices in the fourth quarter of 2024, quarterly filings showed.