Trump’s Crypto Reserve Announcement

President Donald Trump shocked the markets on Sunday with the announcement of assets intended for a planned U.S. strategic crypto reserve.

Analysts at investment firm Bernstein expressed confusion over Trump’s announcement, which includes Ethereum, XRP, Solana, and Cardano alongside Bitcoin in a national crypto reserve. They noted that the U.S. central bank’s involvement could complicate implementation.

Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia, the Bernstein analysts, stated, “The position of Bitcoin as a ‘digital gold’ holding for the U.S. government was expected.” They emphasized that while ETH and SOL are widely used blockchain networks, the rationale for sovereign ownership of these assets is unclear.

On his Truth Social platform, Trump declared a crypto reserve aimed at “elevating this critical industry after years of corrupt attacks by the Biden administration.” He reiterated his commitment to fulfill campaign promises made to an industry that largely backed him, including the establishment of a crypto reserve.

The analysts also questioned whether the crypto reserve could be established via executive order and highlighted the challenges of persuading government members to hold altcoins like Solana and Ethereum. They suggested that the government might convince Congress that Bitcoin represents a new form of digital gold, making a gold reserve reallocation feasible, but acquiring other blockchain assets with federal funds presents significant obstacles.

Trump mentioned that cryptocurrencies such as Ethereum and Solana would be held by authorities. Initially, during his campaign, he focused on Bitcoin, so the inclusion of altcoins took many industry followers by surprise.

Bitcoin surged after Trump’s announcement, nearly reaching $95,000 on Sunday, but then fell, dipping close to $85,000 on Monday. The crypto markets have been volatile in recent weeks, facing pressure from inflation concerns, potential trade wars related to Trump tariffs, and broader economic uncertainties. Bitcoin is trading significantly below its all-time high of over $108,000 set in January.

Edited by James Rubin