On March 2, President Donald Trump officially announced the establishment of a U.S. Strategic Crypto Reserve. Within just three hours of the announcement, the total crypto market cap surged by over $300 billion, reaching $3.6 trillion. Bitcoin’s price quickly jumped from $78,200 to over $94,000, nearly 20% higher than its recent lows.
This rapid increase not only pulled Bitcoin out of bear market territory but also brought it within 16% of its previous all-time high. The sharp rise in Bitcoin’s price shows that investors have a lot of confidence in the potential of the U.S. crypto reserve. Other cryptocurrencies also experienced gains. For example, Cardano’s price increased by 64%, while XRP and Solana saw gains of 30% and 21%, respectively.
What’s Inside Trump’s Crypto Reserve besides Bitcoin?
President Trump’s announcement outlined the creation of a “Crypto Strategic Reserve” that includes major cryptocurrencies such as XRP, SOL, and ADA. Notably, Bitcoin and Ethereum were initially omitted from the list. Later, Trump clarified in a social media post that Bitcoin and Ethereum would indeed be central to the reserve. He described these two cryptocurrencies as valuable assets that would be at the heart of the reserve.
This clarification helped calm the market and contributed to Bitcoin’s rapid price surge. The idea of a national crypto reserve is not new. During his campaign, Trump had proposed that the U.S. acquire a large stockpile of Bitcoin, with estimates ranging from 220,000 to 4 million BTC. Initially, this was described as a “stockpile” of Bitcoin, but the plan has since expanded to include multiple cryptocurrencies under a broader strategic reserve.
Pro-Crypto Administration Is A Plus Point
President Trump’s administration is showing strong support for the crypto industry. The Securities and Exchange Commission (SEC), which regulates financial markets in the U.S., has also adopted a more favorable approach. Recently, the SEC dropped several lawsuits against crypto companies. The SEC also decided not to classify meme coins as securities. This decision was significant because it reduced the risk of legal challenges for many popular but controversial cryptocurrencies. Trump’s executive order, known as E.O. 14178, outlined his plan to make the U.S. the “Crypto Capital of the World.” This order directed a special group within the government to move forward with the creation of the Strategic Crypto Reserve and to explore the use of blockchain technology in federal financial operations.
Trump Plans to Spend $6.9 Trillion in Blockchain
One of the most ambitious parts of Trump’s plan is to move $6.9 trillion of U.S. federal spending onto a blockchain-based system. This idea was first suggested by Elon Musk, who argued that using blockchain could improve transparency and reduce costs. If implemented, this plan could save billions of dollars in annual audit costs by making federal spending more transparent and efficient. Blockchain is known for its ability to securely record transactions in a way that is both transparent and tamper-proof. Moving such a large amount of federal spending to a blockchain system would be an unprecedented step. It could also set an example for other countries to follow. Additionally, David Sacks, Trump’s crypto adviser, hinted at more announcements for the upcoming crypto summit on March 7. The White House will host this summit, where officials expect to provide more details about the Strategic Crypto Reserve. Many also speculate that the event could add new cryptocurrencies to the reserve list.
Is Bitcoin Headed for a New All-Time High?
With Bitcoin currently just 16% below its all-time high, many investors believe that a new record could be reached soon. The combination of Trump’s pro-crypto policies, the inclusion of Bitcoin in the Strategic Reserve, and the favorable stance of the SEC all point to a strong upward trend for Bitcoin. If the upcoming crypto summit on March 7 includes more positive news, Bitcoin could continue its climb. However, the path to a new all-time high will depend on how quickly the U.S. government can move from announcements to action.