On the evening of March 2, 2025, US President Donald Trump released a series of statements on his social media platform Truth Social, announcing that he would promote the establishment of a "crypto strategic reserve" including Solana (SOL), XRP, Cardano (ADA), Bitcoin (BTC) and Ethereum (ETH). This news quickly detonated the global crypto market, and the prices of a number of crypto assets also rose accordingly.ADA even rose by more than 70%. Coupled with the crypto summit to be held at the White House on March 7, the sentiment of the entire market has been mobilized again.
After the brief panic caused by the plunge of Bitcoin and a number of altcoins, Trump's voice seems to have brought hope of a "bull market back". Is the bull market really coming?
01 Trump's Road to Strategic Crypto Reserves
As early as during the 2024 campaign, Trump first proposed the idea of establishing a "Strategic National Bitcoin Reserve" at the Bitcoin Conference, promising to retain about 210,000 bitcoins held by the US government (worth about $20 billion as of March 2025) and use it to hedge against inflation and national debt pressure. This position is in stark contrast to the regulatory crackdown on the crypto industry during the Biden administration, and quickly won the favor of the industry.
On January 23, 2025, Trump signed an executive order "Strengthening America's Leadership in Digital Financial Technology" to form a digital asset working group led by David Sacks to explore the possibility of national reserves.
The Truth Social post on March 2 was the first to identify specific assets. In his first post, he wrote: "The U.S. Strategic Crypto Reserve will enhance this critical industry... My digital asset executive order has instructed the Presidential Working Group to advance a strategic reserve including XRP, SOL and ADA. I will ensure that the United States becomes the world's crypto capital." An hour later, he added: "Obviously, BTC and ETH, as well as other valuable crypto assets, will be the core of the reserve. I love Bitcoin and Ethereum, too!"
The selection of these five assets has sparked heated discussions. BTC and ETH, as the top two crypto assets by market value, represent the mainstream of the market; XRP, SOL and ADA are seen as symbols of American innovation, especially as Ripple, the company behind XRP, has invested in supporting crypto-friendly political actions. SOL represents the future potential of high-performance blockchains. As for ADA, it seems that it has rarely appeared in front of the public before and has the smallest market value, so it has also seen the largest increase after the news came out.
Trump emphasized in the post that the move was a response to "years of corrupt attacks by the Biden administration" and was in line with the January executive order. Analysts believe that the reserve may use crypto assets confiscated by law enforcement (such as BTC currently held by the United States) or be gradually built through market purchases. If true, this will be the world's first state-led diversified crypto reserve.
02
Crypto market reacts enthusiastically
Trump's statement immediately triggered a strong market reaction. According to CoinGecko data, 8 hours after the news was released, the price of XRP soared by about 40% to $2.96, SOL rose 26% to $177, and ADA soared 70% to $1.14. BTC and ETH subsequently rose by 10.6% to $94,000 and 12% to $2,516, respectively, driving the global crypto market value to increase by about $300 billion in a few hours.
Trump's crypto asset reserve plan has also sparked heated discussions in the crypto community, but opinions are mixed, with both supporters and skeptics.
Supporters:
Crypto investor and podcast host Anthony Pompliano said on X:"Trump's strategic reserve is a milestone event that may push Bitcoin above $150,000. If the government takes the lead in hoarding coins, institutional investors will accelerate their entry." He believes that reserves will not only boost prices, but will also inject vitality into U.S. blockchain innovation.
Eric, founder of Venice, said:"This shows that the government has finally recognized the strategic value of crypto assets. The addition of SOL and ADA is particularly exciting, proving that the United States supports a diverse blockchain ecosystem." He expects this to attract global capital back to the United States.
Sceptics:
Samson, CEO of JAN3, strongly criticized:"This is not a strategic reserve, but a 'junk coin reserve'. The addition of XRP and SOL is to transfuse blood for specific projects, not national interests. This motive is more obvious after Trump launched the meme coin." He is worried that this will weaken the unique position of Bitcoin.
Gold advocate and Bitcoin skeptic Peter Schiff said:"The reserve includes a bunch of crypto assets, which shows that BTC is nothing special. Trump's move is more like market intervention to prevent price collapse, rather than a long-term strategy." He predicted that the long-term effect will be limited.
James Butterfill, head of research at CoinShares, said: "The market is excited about specific assets, but the lack of execution details may make the craze difficult to sustain." Data shows that Bitcoin fell nearly 20% in February due to uncertainty in Trump's trade policy. Whether the current rebound can continue still depends on the implementation of subsequent policies.
03 When will the crypto strategic reserve be implemented?
Despite the high enthusiasm in the market, the implementation of the crypto strategic reserve faces multiple obstacles.
1) Unclear implementation details
Trump did not explain the source and scale of the reserve funds. Will it be purchased with the fiscal budget, or will it rely solely on confiscated assets? If it relies solely on existing assets, the number of SOL, XRP and ADA held by the United States is limited, and it is difficult to form a scale effect.
2) Regulatory and legal resistance
The creation of a national reserve may require congressional approval, and the two parties have serious differences in their attitudes towards encryption. Although Senator Cynthia Lummis has proposed a Bitcoin Reserve Act, it has not been passed so far. In addition, the SEC's past controversy over the securities attributes of XRP and others has not been completely resolved, and inclusion in the reserve may cause legal disputes.
3) Conflict of interest
The Trump family's crypto business casts a shadow on its policies.World Liberty Financial (WLFI) and personal MeME coin TRUMP (current price $15.22) launched in 2024 are said to benefit from the reserve plan. Critics such as Elizabeth Warren warn that this may be a move to "use public power to raise private property."
4) Market risk
The high volatility of crypto assets is worrying.BTC's maximum retracement in 2024 reached 20%. If the reserve scale is expanded, the price shock may affect the security of national assets. The Chainanalysis report shows that the total amount of crypto assets stolen by hackers in the past few years has exceeded 5 billion US dollars, and security issues cannot be ignored.
04 Summary
If Trump's reserve plan is implemented, it will reshape the global digital asset landscape. In the short term, the prices of BTC, ETH, XRP, SOL and ADA may continue to rise due to policy expectations, attracting institutional investors. Forbes predicts that if the reserve scale reaches the $100 billion level, the market value of Bitcoin may exceed $3 trillion.
In the long run, the key to success lies in execution. The working group needs to submit a report before July. If it can push Congress to pass relevant legislation (such as the FIT21 Act), the United States may seize the lead in the blockchain field. However, if the details are not clear or hindered by political games, market enthusiasm may turn into disappointment. David Sacks said on X: "More details will be revealed at the White House summit." This may be the next step to determine the success or failure of the policy.
Trump's declaration on Truth Social put the "Crypto Strategic Reserve" on the forefront. From SOL, XRP, ADA to BTC and ETH, this plan is both a continuation of the campaign promise and a gamble on the digital future of the United States. The market has responded with a surge, but from vision to reality, it still needs to overcome many tests of funding, law and security. The summit on March 7 may provide more answers, but before that, every wave of fluctuations in the crypto market deserves close attention.
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