Bitcoin rose sharply on Monday, extending an overnight rebound after U.S. President Donald Trump listed five cryptocurrencies he will include in a strategic reserve, boosting crypto markets.
The world’s largest crypto rallied as much as 20% to $94,266.1, before steadying around $93,303.5 by 00:57 ET (05:57 GMT).
Trump outlines Bitcoin, four other cryptos for promised reserve
Trump on Sunday repeated his plans for a Crypto Strategic Reserve, stating that he had directed an executive group to proceed with the project. He claimed that Bitcoin, Ether, XRP, Solana, and Cardano will comprise the reserve.
“A U.S. Crypto Reserve will elevate this critical industry…which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA,” Trump said in a social media post. He also mentioned Bitcoin and Ether.
Trump had last month signed an executive order to explore a regulatory framework on crypto, including the establishment of a strategic digital assets reserve. But the order had made no mention of Bitcoin, and had provided few details on what the regulatory framework would entail.
Trump is now set to hold his first White House crypto conference this Friday, where he will likely offer more insight into his plans for crypto.
How will Trump’s crypto reserve work?
While Trump’s crypto promises did spark a sharp rebound in crypto prices, the president provided scant cues on how his promised reserve will be formed.
Analysts had also expressed doubts over the reserve. If Trump were to form the reserve through an executive order, there will be very limited funds he will actually be able to deploy towards government purchases of crypto. The scope of the reserve will also be limited, in that an administration after Trump’s could easily disband the reserve.
To build a digital asset reserve akin to the Strategic Petroleum Reserve, Trump will need to seek Congressional approval. While such a scenario will allow for much more funding to be deployed towards the reserve, it also appears unlikely that Congress- despite having a Republican majority- will back Trump’s reserves plans, given that cutting government spending and reducing the fiscal deficit has been one of Trump and the Republican party’s top agendas.
Crypto price today: Altcoins soar on Trump mentions
Broader crypto prices rallied on Monday, with the altcoins mentioned by Trump clocking steep gains.
World no.2 crypto Ether surged 7.8% to $2,434.16, while XRP jumped 22.2%.
Solana added 17% , while Cardano rallied nearly 60%, vastly outpacing its altcoin peers.
Polygon rose 4.1%.
Among meme tokens, Dogecoin added nearly 10%, while $TRUMP rose 16% in an extended rebound from record lows.
Trump’s comments helped lift crypto markets, which were nursing steep losses over the past week amid rapidly worsening risk appetite, as well as a seeming lack of liquidity in the sector. Several whales were also seen cashing out as Bitcoin tumbled below $90,000.
