Trump announces digital assets for inclusion in ‘crypto strategic reserve,’ boosting Bitcoin, his memecoin, and others

President Trump has just dropped a bombshell in the crypto world by revealing the digital assets he plans to include in the U.S. crypto strategic reserve. This announcement has sent the values of several cryptocurrencies, which had been struggling recently, into a frenzy of growth.

The five cryptocurrencies on Trump's radar are Bitcoin, Ether, XRP, Solana, and ADA. Back in January, he signed an executive order aimed at exploring the "potential creation and maintenance of a national digital asset stockpile." Fast forward to Sunday, and Trump has rebranded this stockpile as the "Crypto Strategic Reserve."

In a post on Truth Social, Trump stated, "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. I will make sure the U.S. is the Crypto Capital of the World." He also expressed his fondness for Bitcoin and Ethereum, declaring, "And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum!"

While Trump didn't disclose how much the government plans to invest in each digital asset, the market reacted swiftly. By 2 p.m. ET on Sunday, all five cryptocurrencies had surged in value, with increases ranging from 8% to 20%.

Bitcoin, the heavyweight of the crypto world, had been trading around $86,000 per coin, down from a peak of about $106,000 earlier this year. Following Trump's announcement, it shot up to nearly $93,000. Ether also saw a significant boost, climbing approximately 11.6% to around $2,476, while XRP mirrored that increase, reaching $2.76. Solana experienced a remarkable surge of about 20%, hitting $168.45, and ADA rose about 11.6% to $0.66.

Interestingly, Solana's blockchain platform is home to Trump's own memecoin, a type of cryptocurrency that thrives on internet hype rather than intrinsic value. Launched in January, the Trump memecoin briefly inflated Trump's net worth to over $60 billion, according to some estimates. However, it took a nosedive from around $44 to about $13 on Saturday, only to rebound over 18.5% to $15.39 by Sunday afternoon.

Members of Trump's family have also ventured into the cryptocurrency space, either by launching or investing in various digital assets. During his campaign, Trump garnered considerable support from the crypto community, promising to be an ally to the sector during his presidency.

However, the cryptocurrency landscape has been riddled with pump-and-dump schemes and scams in recent years. For instance, last month, Argentina's President Javier Milei promoted the Libra coin, which saw its value skyrocket before many early investors cashed out, leading to a significant price drop. Crypto developer Hayden Davis, who was involved in launching Libra, later described the industry as an "insiders’ game," and Milei is now facing an investigation.

In another notable case, Haliey Welch, the face of the "Hawk Tuah" meme, faced backlash after her digital coin surged in value due to her promotion, only to plummet by about 95% within hours.

Looking ahead, Trump is set to host a cryptocurrency summit at the White House this Friday. He has appointed David Sacks as the White House czar on cryptocurrency and artificial intelligence, signaling a serious commitment to engaging with the digital asset space.