The crypto market entered March with a bang, regaining the lost momentum of some of the asset class’s worst month since 2022. The recoup is not accidental, the market rise is followed by Donald Trump’s reveal of the plan for a strategic crypto reserve.
Crypto markets have seen a down in the last weeks, and Bitcoin and Ethereum prices declined, highlighting investors’ lessened confidence. However, Donald Trump’s plan for strategic crypto reserve ignited the momentum of the crypto industry, retaliating the declines of the previous month.
In a Truth Social Post shared on Sunday, Trump revealed his January executive order on crypto asking the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA in addition to Bitcoin and Ether.
Though Bitcoin and Ether inclusion is predicted, the addition of XRP and ADA was quite surprising, according to Andrew Tu, head of sales at crypto market maker Efficient Frontier. The announcement made the tokens surge on Sunday, the gain crossed most other digital assets. The inclusion of Bitcoin and Ethereum in the reserve helped the coins regain their lost momentum in the previous months. Bitcoin whose price declined to $78,000 on February end is now trading at $92,751.
Trump’s Crypto Reserve Announcement Swiped Away All Market Bearishness
In the last week, the crypto industry has gone through a major bleed, with popular coins like Bitcoin and Ether prices declining drastically. Altocin like Litecoin, XRP also seen a downtrend.
According to Tu, with the announcement, all the bearishness of the past week has been forgotten by the market, however, if expectations don’t meet reality, the market may retreat. He also added that macroeconomic concerns are still an overhang which has the potential to create a decline in crypto prices similar to that in February.
Based on the announcement, the tokens included in the reserve are among the top eight cryptocurrencies by market value, according to CoinMarketCap.com. However, details like how much the government will actually buy and how the purchases will be funded are still unknown.
Trump’s Announcement Highlights His Loyalty Towards Crypto Community
Trump’s announcement of strategic crypto reserve reconfirms his loyalty to the crypto community, who gave him donations and praise during his campaign days.
With the previous American government under Joe Biden, the crypto industry was facing a crackdown. With Donald Trump participating in the election for the President role many crypto enthusiasts supported him through donations and praise, seeing his crypto-friendly approach. Now the crypto reserve announcement shows Trump’s gratitude towards the crypto industry. He even launched a meme coin under his name, $TRUMP right after the election win.
With the new government under Trump, many changes were made supporting the crypto industry. The leadership of the Security and Exchange Commission, a US agency for monitoring crypto, was changed, Mark Uyeda was appointed as the standing Chairman, who is a crypto pioneer. Under the changed leadership, many crypto-friendly decisions are being made, including the withdrawal of investigations on Gemini, Robinhood Crypto, Consensys, OpenSea, and UniSwap.
