U.S. President’s Plan for National Crypto Reserve Sends Solana, Cardano, and XRP Soaring
Markets React to Trump’s Announcement of Inclusion in U.S. Strategic Crypto Reserve
U.S. President Donald Trump’s intentions of establishing a national strategic reserve of solana (SOL), cardano (ADA), and XRP sent the assets rocketing as much as 60% on Sunday. However, traders express caution until plans are more concrete.
Market Analysis
“The current upward momentum might see a correction in the short term, as investors price in the crypto reserve announcement and determine the legal viability for Trump to create the reserve,” Kevin Guo, director of HashKey Research, told CoinDesk in a Telegram message Monday. “Federal Reserve Chairman Jerome Powell previously stated that the US central bank is not allowed to hold a reserve of Bitcoin, so there are still technical hurdles in front of Trump’s plans.”
“The President’s crypto summit may follow up with more details or other possible announcements that can further the crypto market’s recovery from recent lows,” Guo added.
Crypto Summit and Future Plans
Trump is scheduled to hold the first Crypto Summit at the White House on March 7, where he is expected to share further plans on how crypto regulations and businesses will be supported in the country.
Market Reaction
That sent markets higher almost instantly, with bitcoin up 6.5% to over $93,000 on Monday and the broader market tracked by the broad-based CoinDesk 20 (CD20) up 7%. Elsewhere, tokens Chainlink’s LINK, Uniswap’s UNI, and Movement’s MOVE are up 8% in the past 24 hours — mainly on their closeness to the Trump-family backed World Liberty Financial.
However, some said there’s more work ahead before the current rally can be considered sustained.
Expert Insights
“We expect more volatility until further details can solidify the creation of the strategy reserve, but the crypto market sentiment has swiftly changed, signaling a potential continuation of the bull market,” Chris Yu, CEO of SignalPlus, told CoinDesk in a Telegram message.
Yu anticipates investors will keep an eye on inflows to U.S.-traded ETF products after they registered record outflows last week, where an increase could give cues on signs of a bottom and the possible continuation of the bull market.
Conclusion
The announcement of a national strategic reserve of solana (SOL), cardano (ADA), and XRP has sent the assets soaring, with markets reacting swiftly to the news. While some experts are cautious, others believe that the current rally can continue, pending further details on the creation of the strategy reserve.
FAQs
What is the purpose of the national strategic reserve?
The purpose of the national strategic reserve is to provide a stable and secure platform for the development and growth of the crypto market.
What is the current market reaction to the announcement?
The market has reacted swiftly to the news, with solana (SOL), cardano (ADA), and XRP surging as much as 60%. Bitcoin has also seen a 6.5% increase, reaching over $93,000.
What are the technical hurdles to establishing the reserve?
According to Kevin Guo, director of HashKey Research, there are still technical hurdles to overcome, including the legal viability of Trump’s plan and the fact that the Federal Reserve is not allowed to hold a reserve of Bitcoin.
