US Crypto Reserve: How Will It Change Bitcoin And The Crypto Market?

US President Donald Trump has finally announced a national crypto reserve. While the community was expecting a Bitcoin reserve, as per the president’s previous statements, the US is now working toward a larger digital asset reserve.

The government-held reserve will include XRP, Cardano, Solana, Ethereum, and Bitcoin, among other potential cryptocurrencies.

The move introduces a new chapter in US financial policy. However, several uncertainties remain. Which other cryptocurrencies will this reserve include? How will it impact market prices? And will the Congress even approve this? Let’s explore.

What is the Strategic US Crypto Reserve?

President Trump announced the creation of a US Crypto Reserve during a series of posts on social media. He stated that the reserve would hold a collection of digital assets. This action represents a shift from previous policies.

The government now plans to stockpile certain cryptocurrencies. The approach aims to strengthen the US position in the digital asset market.

The US Crypto Reserve consists of five major tokens. The selected assets are Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). Trump highlighted these tokens in his posts. He stressed that Bitcoin and Ethereum would act as the core of the reserve. At the same time, he included three leading altcoins.

The move signals a favorable stance toward digital currencies. It also marks the first time that a US administration has outlined a list of assets for a strategic reserve.

The government plans to use this reserve as a tool for economic and financial strength. Officials suggest that the strategy will bring increased confidence to the digital asset market. The creation of the reserve comes ahead of a White House crypto summit scheduled for 7 March. The event will likely provide further details on the implementation of the reserve.

Tokens included in the reserve

The announcement names five cryptocurrencies. The tokens chosen represent a mix of market leaders and altcoins with strong technical foundations. Here is a brief explanation of each:

• Bitcoin (BTC): The inclusion of Bitcoin was no surprise, as it was Trump’s original promise. Most notably, over 20 US states are currently debating bills to establish a Bitcoin reserve at the state level. Many investors view it as a store of value and a hedge against economic uncertainty.
• Ethereum (ETH): As the second-largest token by market capitalization, Ethereum powers smart contracts and decentralized applications. Most notably, Trump-affiliated World Liberty Financial (WLFI) holds substantial ETH in its portfolio. His son, Eric Trump, is also a notable advocate for the altcoin.

• XRP: It was always anticipated that US-based cryptocurrencies would receive priority in a national reserve. Ripple being one of the largest crypto donors in the President’s campaign, it’s no surprise why XRP is a part of this reserve.
• Solana (SOL): Solana offers fast transaction speeds and low fees. The utility and board use of Solana drives its appeal. More importantly, Trump’s own meme coin, ‘TRUMP,’ is based on the Solana blockchain.
• Cardano (ADA): Cardano is known for its academic approach to blockchain design. Its selection highlights a focus on long-term sustainability and compliance. It’s also one of the top ‘US-based’ crypto companies.

Market reaction to the announcement

The announcement triggered a strong and immediate response from market participants. Price surges and increased trading volumes marked the event as a turning point. Traders and investors rushed to buy the designated tokens.

Bitcoin experienced a significant jump. Its price climbed more than 10% within hours of the announcement. Bitcoin quickly recovered from recent lows and approached new highs. Investors interpreted the move as a major vote of confidence in the digital asset.

Ethereum followed with a rise of approximately 12–13%. This token also regained ground and drew attention as a key driver of the crypto market. The enthusiasm spilled over into the altcoins as well.

XRP saw a dramatic increase in value. Its price surged around 30% soon after the announcement. The altcoin had a volatile past, and this news helped change investors’ sentiment.

Cardano and Solana also recorded strong gains. Cardano’s value surged over 50% at its peak, while Solana experienced a 20% increase. These rapid movements increased the overall market capitalization by roughly $300billion within a few hours.

Trading volumes hit record levels on many exchanges. Retail and institutional players both rushed to adjust their portfolios. The widespread positive sentiment resulted in a wave of buy orders. The shift in mood from caution to optimism reflected the belief that government backing would lend further legitimacy to digital assets.

How will a crypto reserve impact Bitcoin price? 

Analysts see a strong short-term outlook for Bitcoin. Many predict that the government’s involvement will fuel continued upward momentum. Some experts believe that Bitcoin may break past the $110,000 barrier.

The positive sentiment generated by the reserve initiative has spurred fresh institutional interest. The new policy has convinced many investors to view Bitcoin as a safe digital asset. The government’s backing reduces perceived risk and could attract more conservative investors. The strong technical signals further support a bullish stance.

Most importantly, if Congress does approve this crypto reserve plan, Bitcoin might see a major supply shock due to increasing buying pressure. This could potentially drive BTC to over its projected $150,000 price level by the end of this year.

XRP might record an all-time high soon

XRP witnessed an impressive rally that renewed market optimism. The token now enjoys a boost from the US government endorsement. Technical analysis indicates that XRP has broken out of its previous trading range.

Analysts have noted that if XRP holds above key support levels, it could reach targets around $4.40. This increase could result in a near doubling of XRP’s post-announcement value. Although some analysts remain cautious due to past regulatory issues, the overall sentiment appears bullish.

Also, the fact that the US president plans to include XRP in the national reserve reflects that the SEC’s allegations of the token being a ‘security’ do not stand. It means that the SEC could soon drop its long-running lawsuit against Ripple. This would also pave the way for an XRP ETF and bring new institutional interest into the altcoin.

Cardano price analysis after crypto reserve inclusion

Cardano surprised many with a significant surge after the announcement. Its price jumped more than 50% at its peak. Analysts have observed strong technical indicators that support further gains. Some forecasts suggest that Cardano could test previous cycle highs and possibly reach levels around $1.85 if it breaks through the next resistance zone.

Cardano’s focus on compliance and long-term sustainability appeals to government interests. This support may drive sustained investor confidence over time.

Which other tokens might be added to the US crypto reserve?

Following the official announcement, rumors about future additions to the reserve quickly spread. Many industry voices and crypto analysts offer speculation on which tokens might join the initial list.

One frequently mentioned candidate is Algorand (ALGO). Analysts point to its fast, secure blockchain and US-based leadership. Algorand attracts interest from institutions. Its technical foundation and academic background boost its appeal.

Many believe that a token like Algorand fits well with government interests. The discussions rely on the coin’s credentials and potential for stable growth. No official confirmation exists, but the logic behind the rumor holds weight.

Speculation also touches on other tokens. Some commentators discuss the possibility of stablecoins or additional major assets joining the reserve. However, the current policy excluded tokens like stablecoins and Binance Coin.

Their exclusion might stem from concerns about regulatory issues or political risks. The administration may prefer tokens with strong technical credentials and fewer legal challenges.

Social media community chatter has also raised Dogecoin as a candidate. Additional names appear in speculative discussions. Some mention tokens such as Polygon (MATIC) or Polkadot (DOT).

These projects possess strong ecosystems and show promise for future adoption. Yet, they have not received the same level of attention as the initial five tokens. Rumors circulate mainly in trading forums and crypto news sites.

Their credibility remains low until any official movement occurs. Investors watch for signals during upcoming policy events, such as the White House crypto summit. They expect that future additions will require clear criteria aligning with government goals.

Overall, the US Crypto Reserve appears to offer an opportunity to reframe the role of cryptocurrencies. The move boosts market confidence, sparks fresh investment, and paves the way for further policy shifts. It remains a key development in the evolution of digital finance.