Crypto prices surged after President Donald Trump announced plans for a U.S government-held crypto reserve. The reserve would include Bitcoin, XRP, Solana, Cardano, and Ether.
Bitcoin’s price jumped to $95,000 after falling below $80,000 last week. XRP, solana and cardano saw sharp gains before the rally faded. By Monday afternoon, prices had returned to pre-announcement levels.
Trump’s statement came amid plans to impose 25% tariffs on imports from Canada and Mexico. U.S. stocks fell sharply following the tariff announcement.
Advocates for a crypto reserve argue it could help diversify government assets. Critics say crypto’s volatility makes it an unstable choice for a reserve.
During his campaign, Trump pledged to create a national Bitcoin stockpile. His latest announcement marks the first time he has supported holding other cryptocurrencies.
Some industry leaders reacted with skepticism. Coinbase CEO Brian Armstrong suggested Bitcoin alone would be the best option. The White House did not clarify how the government would acquire the assets.
Eric Trump praised the price surge, saying it validated his recent crypto investment advice. The president also accused the Biden administration of targeting the crypto industry unfairly.
BTC surged past $100K in December and Trump took credit for the rally. However, crypto prices have had a change in shift since his inauguration. BTC and altcoins all together have declined massively since the inauguration date.
Trump faced backlash for launching a personal meme coin that later collapsed. The industry also suffered from recent Bybit exchange hack and failed celebrity-linked tokens.
Influencer Dave Portnoy questioned the crypto downturn despite Trump’s support. Meanwhile, Trump plans to host a “Crypto Summit” at the White House on Friday this week. Will there be a surge after the summit? This answer lies to what he is about to say on Friday.