U.S. President Donald Trump has officially announced plans for a strategic U.S. crypto reserve, news that briefly sent prices for digital coins and assets higher over the weekend.
On social media, Trump announced plans for the crypto reserve and teased details about the move that has been long awaited by cryptocurrency advocates.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, rose nearly $14,000 U.S., or about 18%, to nearly $93,000 U.S. on the news.
Ethereum (ETH), the second-largest crypto, gained 13% over the past few days to trade at about $2,300 U.S.
At the same time, stocks of cryptocurrency trading platforms, such as Coinbase (COIN) and Robinhood (HOOD) rose 9% and 7%, respectively.
Trump said his administration would create a strategic cryptocurrency reserve, which is different from previous plans to build what was called a “Bitcoin stockpile.”
The crypto reserve will not only involve Bitcoin but also include other cryptocurrencies ranging from Ethereum to XRP (XRP), Solana (SOL) and Cardano (ADA).
A strategic crypto reserve would see the U.S. government potentially buy billions of dollars worth of cryptocurrencies, sending prices higher as a result.
While Bitcoin and the smaller digital tokens skyrocketed on news of the crypto reserve, the gains didn’t last long.
Bitcoin is down 1% ahead of U.S. markets opening on March 3, while other cryptocurrencies such as Ethereum, Solana and XRP are down 5% or more ahead of the opening trading bell.
While many crypt bulls praised the announcement of a crypto reserve as a way of getting Bitcoin out of the drawdown that saw its price fall below $80,000 U.S. on Feb. 28, others took a more cynical approach.
On social media, some people criticized the timing of the crypto reserve announcement, claiming that it was an effort to boost sagging crypto prices ahead of Trump’s address to Congress on March 4.
Other crypto observers questioned how the crypto reserve will work and said they want to see more details of the plan.
The Trump administration is planning to hold its first Crypto Summit at the White House on March 7.
Bitcoin is currently trading at $93,100 U.S., having declined 1% in the last 24 hours. The cryptocurrency is flat on the year.
