U.S. President Donald Trump Announces Bitcoin Reserve and Digital Asset Stockpile

U.S. President Donald Trump, a known pro-crypto figure, recently announced his plan to create a Bitcoin Reserve and Digital Asset Stockpile for the U.S.

U.S. President Donald Trump, a known pro-crypto figure, has recently announced his plan to create a Bitcoin Reserve and Digital Asset Stockpile for the U.S. The strategic crypto reserve will put the U.S. at the forefront of crypto adoption nationally and launch the country into a more significant financial status in the long run. The announcement on 3 March 2025 aligns with the President’s campaign promises to make the U.S. the “crypto capital of the planet.”

Details of the Proposed Crypto Reserve

The Executive Order signed by Trump establishes Bitcoin as a reserve asset in the U.S. It will use approximately 200,000 BTC forfeited from criminal and civil proceedings and is now owned by the Department of Treasury. The government will not sell the Bitcoin deposits but will maintain the Reserve. One noteworthy fact is that the crypto reserve “will not cost taxpayers a dime,” which could mean there may be no institutional-level liquidity injected into the digital asset market.

In his announcement, Trump mentioned that the crypto reserve would include Bitcoin, XRP (Ripple), SOL (Solana), Ada (Cardano), and other coins. He also appointed a “Crypto Czar,” David Sacks, to oversee the process of building a legal framework for the crypto industry and to lead the President’s Council of Advisors on Science and Technology. The impact of these decisions on the global market and how Investors open positions on their crypto trading platform may unlock new price levels for the assets mentioned.

Economic Strategy

Besides making the U.S. a global leader in the crypto space, the crypto reserve will also serve as a long-term economic strategy for the U.S. After Sacks revealed that the U.S. already lost around $17 billion due to the early selling of crypto assets, the decision to hold more Bitcoin and altcoins may position the country for crucial economic advantages in the future. For example, as Bitcoin nears its maximum supply, the price may soar beyond $200,000, making the 200,000 BTC potentially worth over $40 billion.

How Digital Asset Markets Reacted to Trump’s Announcement

Trump’s announcement surprisingly had no significantly positive impact on the crypto market. A few reasons for this include the recent bullish momentum reaching a temporary retracement and the markets have adjusted to a pro-crypto President. Here’s how the four cryptocurrencies mentioned by Trump reacted to the news.

Bitcoin

December 2024 saw Bitcoin cross $100,000 for the first time as traders and institutional investors anticipated Trump’s swearing-in. Since then, the premier crypto token has reached an all-time high price of $109,026 before falling below $90,000. Bitcoin had a disappointing response to Trump’s announcement, falling to 5.7% in late-afternoon trading on March 7. Although the general expectation was for Bitcoin to gain following Trump’s announcement, the RSI on 6 March showed that it was overbought, and a bearish reversal pattern formed at the $92,779 mark. Bitcoin trades at below $86,800 as of 15:22 E.T.

Ripple (XRP), SOL, and ADA Make Gains

XRP has had a rather unpleasant experience with the U.S. Securities and Exchange Commission following its five-year running case. With the appeals process set to be concluded during Trump’s tenure, the crypto market could be favorable on outcomes. XRP saw huge volatility during the week of the announcement and jumped 28% immediately after the news hit the market, eventually reaching a daily high of $2.66. The news of XRP’s inclusion in the crypto reserve spurred the initial gains but made it impossible to sustain the bullish move. XRP has since fallen, trading below $2.2 as of 15:22 on Sunday, but is still up over 270% over the last year.

SOL also rallied once the news hit the market. The token rose nearly 12% daily, even outperforming Bitcoin the day after the announcement. ADA was the biggest gainer among the tokens that Trump mentioned. ADA gained over 43% in 24 hours by 3 March, trading above $0.95. The enthusiasm was short-lived. However, as clarifications from White House officials indicated, Trump’s mention of SOL and ADA was merely illustrative and not a firm commitment. This led to a sharp decline in their prices as both SOL and ADA dropped by 4% and 5%, respectively.

Potential Long-Term Impact

The establishment of a crypto reserve could elevate crypto prices if more institutional and retail buyers step in. As the Executive Order allows the Treasury Department to sell assets from the stockpile, markets may see significant price changes as more money enters. The shift towards institutional stability may reduce selling