Crypto Prices Jump After Trump Announces Five Tokens for Strategic Reserve — WSJ
By Vicky Ge HuangCrypto prices surged Sunday after President Trump said he would move forward on a U.S. crypto strategic reserve that will include bitcoin and ether, as well as three smaller and riskier tokens."A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration," said Trump in a Sunday post on his social-media platform Truth Social. "I will make sure the U.S. is the Crypto Capital of the World."Trump said the crypto strategic reserve will also include solana, Ripple-linked XRP and cardano. Unlike bitcoin, which is the largest and oldest cryptocurrency, these tokens were created more recently and often by a small team, making them more susceptible to wild price swings and other risks.It remains unclear how such a reserve would be created — or whether it could bring any benefit to the country.As of Sunday afternoon, bitcoin rose 9% from 24 hours earlier to around $93,000, while ether jumped 11% to $2,500. Solana surged 20% to $169. XRP advanced about 30% to $2.80, while cardano soared nearly 60% to $1.02.The rally helps stem a recent market slide. After trading around $109,000 on Inauguration Day, bitcoin fell below $80,000 last week amid a broad shift away from risk assets, including tech stocks and cryptocurrencies. A huge heist at crypto exchange Bybit two weeks ago also hurt sentiment.Trump first brought up the idea of a "strategic national bitcoin stockpile" during his keynote speech at the annual Bitcoin Conference in July. Since then, the idea has generated excitement in crypto circles, where investors and entrepreneurs are clamoring for government policies that help legitimize bitcoin, which in turn could boost its value.A onetime bitcoin skeptic, Trump embraced crypto last year and made a series of big promises to the industry. Since returning to the White House, he has created a working group on digital-asset markets and pardoned Ross Ulbricht, the founder of Silk Road, an online drug bazaar that used bitcoin as its payment method.Investors and analysts have said that one way to build the reserve is for Uncle Sam to hold on to its huge stash of bitcoin seized from cybercriminals and darknet markets. The U.S. government holds more than 180,000 bitcoin worth about $18 billion based on current market prices, according to data compiled by crypto firm 21.co. Historically, the government has sold seized bitcoin to reimburse victims of cybercrime and cover agency expenses.The government has also seized other tokens, but the sum isn't tracked as closely by researchers.Trump is expected to host and speak at the first-ever White House Crypto Summit on Friday. The summit will be chaired by Trump's AI and crypto czar David Sacks and attended by industry CEOs, founders and investors.Write to Vicky Ge Huang at [email protected]