WEST PALM BEACH, Florida — Cryptocurrencies surged on Sunday, adding roughly $200 billion to their collective market value, after U.S. President Donald Trump named five digital assets—Bitcoin, Ethereum, Solana, XRP, and ADA—as candidates for a nascent U.S. strategic reserve. The announcement, made via social media, jolted a market still reeling from a $1 trillion wipeout since December, underscoring Trump’s outsized influence on the volatile $2.7 trillion crypto ecosystem.
Bitcoin, the bellwether token, jumped 8% to $90,828 by midday, paring losses from a 28% slide off its January 20 peak of $109,241, according to CoinMarketCap data. Ethereum climbed 6% to $2,350, while Solana, XRP, and ADA posted double-digit gains—15%, 18%, and 20%, respectively—fueling speculation about their role in Trump’s vision. The broader crypto market cap hit $2.9 trillion, a sharp rebound from February’s lows, per Bloomberg calculations.
Trump’s posts, including a follow-up affirming Bitcoin and Ethereum as “the heart of the Reserve,” mark a pivot from January’s vaguer executive order, which tasked a crypto working group with exploring a stockpile sourced from seized assets. That ambiguity had dampened investor enthusiasm, with Bitcoin shedding nearly all its post-election gains amid tariff fears and a risk-off mood. Sunday’s specificity lit a fuse under traders, though analysts caution the rally’s staying power remains untested.
“The market’s been starving for a catalyst,” said James Butterfill, head of research at CoinShares. “Trump naming tokens is a psychological boost, but without legislative meat on the bones, it’s just noise.” Butterfill pointed to lingering uncertainties—Will Congress fund this? How much crypto can the U.S. realistically hoard?—that could cap the upside.
Trump’s crypto gambit aligns with his pledge to make the U.S. “the Bitcoin superpower of the world,” a stance that’s galvanized the industry since his November reelection. Yet the timing is curious: The market had just stabilized after a brutal February, with tariff threats and a fading “Trump trade” narrative dragging Bitcoin below $80,000. Sunday’s spike suggests his words alone can still move needles, even as skeptics question the reserve’s feasibility.
Historical precedent offers mixed signals. Bitcoin soared 70% in the three months post-Trump’s 2024 win, only to crater when policy details lagged. The inclusion of XRP and ADA—tokens tied to regulatory battles—raised eyebrows. “Solana makes sense for its speed, but XRP and ADA feel like wild cards,” said Andrew Tu, head of sales at Efficient Frontier, a crypto market maker. “This could be Trump tossing a bone to loyalists.”
For now, the rally has legs. Trading volume spiked 25% across major exchanges, per CryptoQuant, with retail FOMO—fear of missing out—echoing 2021’s bull run. Still, macro headwinds loom: The Federal Reserve’s next rate decision, due March 19, could sour risk appetite if hikes persist. And Trump’s summit, slated for March 7 at the White House, may clarify whether this is a policy cornerstone or political theater.
Investors are betting on the former. “It’s a $200 billion vote of confidence,” said one hedge fund manager, speaking anonymously. “But Trump’s track record is hype first, delivery later.” The crypto crowd, it seems, is happy to ride the wave—until the next tweet.
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