CEO's Corner: The U.S. Crypto Strategic Reserve

American President Donald Trump announced overnight the creation of a U.S. Crypto Strategic Reserve. The news, long heralded throughout the Trump campaign, reignited price momentum on crypto markets. Bitcoin (BTC) and Ethereum (ETH) were notably absent from the initial lineup, surprising market participants, as the two projects account for 70% of the crypto market’s capitalisation. Instead, the announcement featured XRP, Solana (SOL), and Cardano (ADA).

Analysts were quick to highlight that XRP and Solana are U.S.-based projects, while Cardano maintains strong ties to the U.S. The decision to prioritise these assets in the reserve underscores a strategic emphasis on domestically linked cryptocurrencies. The move has added a new dimension to the ongoing debate over U.S. crypto policy and market dynamics.

Market reaction

The announcement sparked a strong rally across the crypto market, driving significant price gains across major assets:

• Bitcoin (BTC): Up 10.29%, climbing from US$85,000 to US$95,000
• Ethereum (ETH): Gained 12.65%, now trading at approximately US$2,520
• XRP: Surged 32.04%, reaching US$2.86
• Solana (SOL): Rose 24.68%, surpassing US$179
• Cardano (ADA): Jumped 56.61%, peaking at US$1.14.

This sharp upward momentum reflects a return of investor activity following quieter markets in recent weeks.

Exchange activity & market growth

The impact of the announcement has been immediate and substantial:

• 24-hour global trading volume has increased to US$197.41billion; it is still short of the Dec 9th peak of US$202 billion
• The total cryptocurrency market cap has grown by 11.72%, adding US$3.2 billion since the news broke.

Why were Bitcoin and Ethereum initially excluded?

The initial decision to omit Bitcoin and Ethereum raises questions. They are the largest and most decentralised digital assets. Their later inclusion suggests that the reserve prefers assets with closer regulatory and political ties to the US.

One of the core principles of cryptocurrency is its ability to exist outside of government influence. However, if major assets are increasingly tied to specific jurisdictions, it could lead to a concentration of power that contradicts the foundational ethos of crypto. We are already seeing this play out in price action, as traders’ factor in potential regulatory and political influence over these assets.

Implications for the market

The establishment of a U.S. Crypto Strategic Reserve by a major economy like the US could shape the industry in several ways:

• Institutional recognition: Official backing bolsters the argument for broader institutional adoption.
• Market stability: A government-held reserve could help reduce extreme volatility, although the specifics of its management remain unclear.
• Regulatory influence: The selection of assets could hint at future US policy directions, particularly in terms of which cryptocurrencies receive favourable regulatory treatment.

What comes next?

The lack of transparency around acquisition, custody, and long-term strategy leaves investors with more questions than answers. Will this lead to broader adoption, or is it primarily a political manoeuvre? How will other nations react?

These issues are expected to take centre stage at the upcoming Crypto Summit on Friday. Industry leaders and policymakers will discuss the future of digital assets in the US. The coming months will be crucial in determining whether this marks a turning point for crypto’s role in government reserves or just another market-moving headline.

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