Bitcoin (BTC) is Up by 8% as the U.S. Government Doubles Down on Its Proposed Strategic Crypto Reserve (SCR).

President Donald Trump's social media post confirmed Bitcoin, Ethereum, XRP, Solana, and Cardano will be part of a new reserve. This reserve is intended to secure the networks that will support future digital dollar transactions.

President Donald Trump’s administration is reportedly planning to create a Strategic Crypto Reserve (SCR). The move comes as the U.S. government is keen on securing the networks that will support future digital dollar transactions.

According to a report by The Block, the U.S. government is planning to include Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) in a new crypto reserve.

The move is part of a broader effort by the U.S. to secure the blockchain infrastructure that will be critical for the future of digital assets.

The report also notes that the U.S. government is aware of the threat posed by China’s rapidly growing artificial intelligence (AI) sector.

China’s stock market, as shown by the CES100 index, experienced a decline throughout most of the trading day on Friday. This downturn occurs ahead of the March 4 deadline for the additional 10% tariff on Chinese imports, imposed by U.S. President Donald Trump.

After an initial rise to reach its peak around 08:30, the index gradually decreased, hitting its lowest point at around noon. Although there was some recovery observed in the index during the final hours of trading, the index ultimately closed lower than its opening high.

The growing correlation between China’s stock market and the crypto sector is evident, especially with the rapid development of China’s AI sector, which continues to pose a threat to global tech valuations. This is highlighted by DeepSeek AI, the Chinese AI model, becoming the top-ranked app on Apple’s store.

The app rapidly gained popularity, having been built on a budget of $10 million compared to ChatGPT’s $157 billion. This has raised concerns among investors about U.S. tech stocks being overvalued.

The heightened concern led to substantial sell-offs in the stocks of U.S. tech giants such as NVIDIA and Meta, which in turn affected crypto markets in January. Consequently, Bitcoin experienced a brief decline of 5%, while altcoins witnessed even steeper drops.

Despite the short-term volatility, Bitcoin’s inclusion in the Strategic Crypto Reserve by the U.S. government suggests long-term institutional support for the cryptocurrency. This could ultimately solidify Bitcoin’s role as digital gold in a rapidly changing financial landscape.