U.S. President Donald Trump made a public declaration on March 2, 2025, of the establishment of a U.S. cryptocurrency strategic reserve. It will be dominated by Bitcoin (BTC), Ethereum (ETH), XRP (Ripple), Solana (SOL), and Cardano (ADA). The declaration has been accompanied by unprecedented price surges in these digital tokens, reigniting interest and faith in the cryptocurrency market, which had taken a recent downturn.
Top Cryptocurrencies Experience Price Surges
Following Trump’s remark, the price of Bitcoin increased by nearly 10% to a price of $92,900. Ethereum increased by nearly 7% to $2,365. XRP increased by nearly 30% to $2.64, while Solana increased by nearly 20% to $160.74. Cardano experienced the biggest increase by 47% to $0.9719.
The combined value of cryptocurrency sits on CoinMarketCap’s site at roughly $3 trillion once more. This follows after a colossal fall in value last month in February.
Information regarding the Strategic Reserve
Trump’s reserve plan is meant to be holding leading cryptocurrencies, those that he urged to make America the “Crypto Capital of the World.” That followed an executive order in January calling on the Presidential Working Group to create a strategic digital asset reserve. Trump again mentioned in his posts that Bitcoin and Ethereum will form the foundation of the reserve.
Even though the makeup of the crypto reserve is yet to be determined, attorneys are duking it out as to whether or not it can be achieved with Congressional support or if it can be accomplished via the U.S. Treasury’s Exchange Stabilization Fund. Speculation has run around that cryptocurrencies that have been seized that were taken during law enforcement actions will find their way into the reserve.
Market Sentiment and Future Implications
Market sentiment has moved decisively towards a positive tone after the news. The Fear and Greed Index has been reported at 33, indicating caution and optimism in investors.
The presence of a majority of investors’ hope that Trump’s policies will restore faith in the crypto market, especially if supported by potential Federal Reserve rate cuts, is optimistic.
In addition, BlackRock’s recent move to add its iShares Bitcoin ETF Trust to a $150 billion representative portfolio is meant to further signal increased institutional investment in cryptocurrencies. The trend would translate into additional market stability and expansion.
Broader Market Context
Even with the recent surge, the cryptocurrency market had been in decline before Trump’s announcement. Bitcoin fell over 17% in February, its biggest monthly fall since June 2022. Analysts think that Trump’s announcement may revive investor confidence, particularly if accompanied by friendly regulatory actions.
Also, experts have noted that historical trends indicate that March is usually a favorable month for Bitcoin and Ethereum with an average appreciation of 17%. This, coupled with the current market trend, indicates potential further price appreciation.
