Bitcoin has shattered expectations once again, soaring past $94,000 after President Trump’s official announcement of a US Strategic Crypto Reserve. Within just three hours, the market added over $300 billion to its total value, setting the stage for a new phase in digital currency adoption.
At precisely 10:24 AM ET, Trump took to social media to declare his intention to make the United States the “Crypto Capital.” The initial announcement referenced XRP, Solana (SOL), and Cardano (ADA), sending these tokens surging. Cardano led the charge with a staggering 64% jump, while Ripple and Solana followed with gains of 30% and 21%, respectively. However, Bitcoin and Ethereum were conspicuously absent from the first statement.
This fuelled speculation, as many recalled a report from the NY Post on January 16th, which suggested Trump’s proposal would prioritise digital currencies with strong US roots, such as Solana, Ripple, and USD Coin. Just under two hours after his first statement, Trump clarified, explicitly naming Bitcoin and Ethereum as “the heart of the Reserve.” This confirmation reignited market momentum, reinforcing Bitcoin’s rapid climb from $78,200 to over $94,000 in just a matter of days.
The timing of this announcement is significant, as it comes ahead of the first-ever crypto summit at the White House, scheduled for March 7th. Trump’s newly appointed crypto advisor, David Sacks, has already hinted that further developments will be revealed at the event. This has led to speculation that the Strategic Reserve could expand beyond its initial selection of digital assets.
The implications extend beyond just coin selection. Elon Musk recently proposed moving all US spending onto blockchain, a suggestion that now seems more plausible. A shift of this scale would place $6.9 trillion of annual government expenditure onto a decentralised ledger, potentially saving billions in auditing costs and enhancing financial transparency.
This move represents a significant evolution from Trump’s earlier stance on Bitcoin, which was once marked by scepticism. During his campaign, discussions centred around the US acquiring between 220,000 and 4 million BTC, but the expansion of the reserve to include multiple cryptocurrencies signals a shift in approach. What remains unanswered is why this shift has occurred so abruptly.
Meanwhile, regulatory barriers are crumbling at an unprecedented pace. The SEC, once seen as a thorn in the side of crypto firms, has reversed course by dropping multiple lawsuits. Trump’s launch of a memecoin, coupled with the SEC’s assertion that memecoins are not securities, further underscores the shift in policy direction. The administration has positioned itself as the most pro-crypto leadership the US has ever seen, reshaping the regulatory environment at breakneck speed.
Traditional markets have responded in kind. The Nasdaq 100 surged 2% within just three hours on Friday, despite the absence of any overtly bullish headlines. With the benefit of hindsight, some are now questioning whether certain investors had prior knowledge of the announcement. Regardless, tech stocks are expected to rise further when trading resumes, as Wall Street absorbs the full impact of the reserve news.
Looking ahead, the crypto market is bracing for its next major catalyst. With many of Trump’s campaign pledges already factored into valuations, investors are navigating uncharted waters. The burning question remains—will Bitcoin set a new all-time high before the end of the month?
