Despite Bumpy Rollout, President Donald Trump's Strategic Crypto Reserve Announcement Remains Bullish for the Market

Unveiled on Sunday, the reserve—set to include Bitcoin BTC/USD, Ethereum ETH/USD, Solana SOL/USD, Ripple XRP/USD, and Cardano ADA/USD triggered a swift market reaction

Despite a bumpy rollout with President Donald Trump’s strategic crypto reserve announcement remaining bullish for the market, the industry critique over its scope has dampened the mood somewhat, Bitwise Chief Investment Officer Matt Hougan said on Wednesday.

What Happened: Unveiled on Sunday, the reserve—set to include Bitcoin (BTC/USD), Ethereum (ETH/USD), Solana (SOL/USD), Ripple (XRP/USD), and Cardano (ADA/USD applied no direct pressure on the crypto market as Bitcoin clocked a 10% gain.

After rumors swirled last week, Trump announced in an interview with Punchbowl News that his administration was working on a U.S. strategic crypto reserve.

A rendering of the White House, the residence and office of the president of the United States.

The move, touted by crypto enthusiasts for months, would see the U.S. follow in the footsteps of nations like El Salvador, Bhutan, and Abu Dhabi, all of which have been actively acquiring Bitcoin for their treasuries.

However, the president’s announcement took a broader turn than anticipated, encompassing not only Bitcoin but also Ethereum, Solana, Cardano, and Ripple.

This sparked reactions from crypto luminaries.

Coinbase (NASDAQ:COIN) CEO Brian Armstrong expressed disappointment that the administration wasn’t focused on Bitcoin, an opinion shared by Castle Island’s Nic Carter.

“I’m grateful the new administration is so constructive on the space. Look forward to learning more about the thinking here. Of course, I imagined a Strategic Reserve would be just Bitcoin. That makes the most sense to me (and is the policy we pushed for). But looking forward to seeing what develops,” Hunter Horsley said.

Aligning with this sentiment, Bitwise CEO Hunter Horsley had a narrower vision, focused on Bitcoin as the ideal asset for such a reserve.

In a Tuesday blog post, Hougan addressed this backlash, noting that the diverse asset mix drew criticism.

“For all the flaws in the rollout, the reserve news is bullish and I think the market will come around to that view,” Hougan wrote.

The announcement’s initial jolt and the subsequent retreat are evident in Bitwise data from CoinGecko, tracking crypto assets between February 27 and March 3.

As evident in the chart above, CoinGecko data reveals a decline in crypto values over the past three days. After reaching highs on Monday, February 27, crypto prices began to slide.

The figures highlight that by Monday, February 27, Bitcoin had soared to $85,176. However, following President Donald Trump’s announcement of a strategic crypto reserve on Sunday, Bitcoin experienced a surge, rising to $95,000 as the cryptocurrency market showed signs of recovery on Monday.

But Trump administration's move to create a U.S. strategic crypto reserve, reportedly including Bitcoin, Ethereum, Solana, Cardano, and Ripple, drew mixed reactions from crypto executives.

Despite rumors of the U.S. crafting a strategic crypto reserve, President Donald Trump’s confirmation of the initiative on Sunday took many by surprise.

Rumors of the U.S. forming a strategic crypto reserve sparked widespread anticipation among crypto enthusiasts, who eagerly awaited official confirmation from the administration.

Finally, President Donald Trump himself dropped hints during an interview with Punchbowl News.

As part of a broader discussion on economic policy, Trump stated that his administration was actively exploring the creation of a U.S. strategic crypto reserve.

This would entail the federal government directly investing in cryptocurrencies, similar to how China holds a large portion of U.S. Treasury bonds.

In response to a question about the potential assets to be included in such a reserve, Trump mentioned Bitcoin, Ethereum, Solana, Cardano, and Ripple.

The president’s remarks came after a period of speculation regarding the U.S. joining nations like El Salvador, Bhutan, and Abu Dhabi, which have been actively acquiring Bitcoin for their treasuries.

Earlier this year, Salvadoran President Nayib Bukele announced that his administration had made another Bitcoin purchase, adding to the country’s crypto treasury.

Moreover, reports from January indicated that Bhutan’s central bank had made a significant cryptocurrency investment.

In December of last year, Abu Dhabi’s sovereign wealth fund made headlines with a $10 billion investment in a blockchain-focused venture capital firm.

However, the president’s announcement of a U.S. crypto reserve was met with mixed reactions from key figures in the crypto industry.

While some expressed enthusiasm for the administration’s involvement in crypto, others had a narrower vision, particularly focused on Bitcoin.

“Of course, I’m grateful the new administration is so constructive on the space. Look forward to learning more about the thinking here. Of course, I imagined a Strategic Reserve would be just Bitcoin. That makes the most sense to me (and is the policy we pushed for). But looking forward to seeing what develops,”