Trump Proposes National 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.

> “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 via Telegram.

Guo noted that Federal Reserve Chairman Jerome Powell previously stated that the U.S. central bank is not allowed to hold a reserve of Bitcoin, highlighting technical hurdles for 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.

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 supporting crypto regulations and businesses in the country.

He announced on Truth Social late Sunday that XRP, SOL, and ADA would be included in the U.S. strategic crypto reserve. He later added Bitcoin and Ethereum to the list and has been discussing this concept since his 2024 presidential campaign.

This announcement sent markets higher quickly, with Bitcoin up 6.5% to over $93,000 on Monday, and the broader market tracked by the CoinDesk 20 (CD20) rising 7%.

In addition, tokens such as Chainlink’s LINK, Uniswap’s UNI, and Movement’s MOVE are up 8% in the past 24 hours, likely due to their association with the Trump-family backed World Liberty Financial.

Despite the surge, some believe more work is needed to sustain this rally.

> “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 via Telegram.

Yu expects investors will monitor inflows to U.S.-traded ETF products after last week’s record outflows, as an increase could indicate signs of a market bottom and a continuation of the bull trend.