Crypto prices jump as Donald Trump makes major announcement on cryptocurrency
The supposed 'golden age' of the USA is on the way, with President Donald Trump promoting a new future where crypto is king. It's no coincidence that the POTUS released his own meme coin just days before returning to office, while Bitcoin hit an all-time high of $108,786 on inauguration day.
There's been a recent slump in Bitcoin, while Trump's meme coin has lost $12 billion of its value.
Things could soon be on the up, with the POTUS announcing a crypto reserve to "make sure the US is the crypto capital of the world."
Although Trump told Fox News that crypto is a 'scam' in 2021, he's since done a U-turn and even became the first former President to use Bitcoin in a public transaction when he bought a burger.
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After signing his "Strengthening American Leadership In Digital Financial Technology" executive order in January, cryptocurrency prices are currently rallying following the announcement of a crypto reserve.
The executive order will create a stockpile of digital currencies that include Bitcoin, Ethereum, XRP, Solana, and Cardano (ADA).
Writing on Truth Social, Trump confirmed: "A US Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA."
In a follow-up post, he added: "And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve. I also love Bitcoin and Ethereum!"
The announcement saw Bitcoin rise by 11% to $94,164, while Ethereum climbed by 13% to $2,516. Solana jumped by 25%, XRP by 33%, and Cardano soared by 60%.
In general, Bitcoin is trading at around 20% more than its recent lows and fears it was facing a 'heliocentric reckoning'.
CoinGecko reports that the entire cryptocurrency market rose by about 10%, which works out at an impressive $300 billion.
Speaking at 2024's Bitcoin conference, Trump spoke about the idea of a Bitcoin stockpile that would "keep 100% of all the Bitcoin the US government currently holds or acquires into the future."
The idea of a Bitcoin reserve has been championed by crypto supporter, saying that something akin to Fort Knox holding gold could help boost the legitimacy of digital currencies. Things are on the move, with one Republican-backed Senate bill asking the US Treasury to buy one million bitcoin, which would be worth about $93 billion.
Either way, Trump is confident that he has ended “Joe Biden’s war on bitcoin and crypto," adding: "We ended that war totally."
Whether this upward trajectory will continue remains to be seen, but with the POTUS hosting the first White House Crypto Summit on March 7, we expect things will at least be on the up for a while.