Trump Announces U.S. Crypto Strategic Reserve: Is Bitcoin No Longer the Priority?

During his presidential campaign, Trump pledged not only to accumulate Bitcoin but also to preserve all state-held digital assets by establishing a Bitcoin reserve. However, his approach now appears to have shifted. Instead of focusing solely on Bitcoin, Trump has decided to create a broader reserve of digital assets, aligning with his previous executive order on crypto policy.

A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration. I will make sure the U.S. is the Crypto Capital of the World,

Trump stated.

The decision has drawn criticism from Bitcoin maximalists, who argue that adding multiple digital assets to the crypto reserve could weaken Bitcoin’s position as the leading store of value. Some believe that, over time, the reserve will naturally transition to a Bitcoin-only model, as altcoins lose relevance.

Market Reaction 

Following Trump’s announcement of the U.S. Crypto Strategic Reserve, the cryptocurrency market experienced a sharp rally, particularly in the assets mentioned in his statement. Bitcoin surged over 9%, while altcoins like ADA and XRP skyrocketed by 70% and 35%, respectively, within 24 hours. The market later corrected slightly, restoring Bitcoin’s dominance, which had initially dropped by several percentage points. This shift suggests that investors actively traded not just BTC but also other cryptocurrencies included in Trump’s crypto strategic reserve.

Beyond spot market fluctuations, Trump’s statement also had a significant impact on crypto futures trading. On the Chicago Mercantile Exchange (CME), Bitcoin futures saw the largest-ever price gap of $10,000. These gaps emerge due to differences in trading hours between spot and traditional markets. Traders closely monitor these price gaps, as they often become key support or resistance levels in future price movements.

Community Reaction

The crypto community largely welcomed the announcement, seeing it as a significant step toward broader cryptocurrency adoption. However, some analysts, industry leaders, and users voiced disappointment over the inclusion of altcoins alongside Bitcoin in the reserve. Hunter Horsley, CEO of Bitwise, praised the administration for promoting crypto but argued that the crypto strategic reserve should consist exclusively of Bitcoin:

I imagined a Strategic Reserve would be just Bitcoin. That makes the most sense to me. Many crypto assets have merits, but what we're talking about here isn't a US investment portfolio — we're talking about a reserve, and Bitcoin is the undisputed store of value for the digital age.

Even prominent BTC critic Peter Schiff weighed in on the news of altcoins being included in the crypto strategic reserve. He criticized the selection process, questioning the criteria for choosing these assets and why they were effectively being subsidized with taxpayer money. He also voiced frustration over some media outlets misrepresenting his stance as support for the Bitcoin reserve.

I get the rationale for a Bitcoin reserve. I don't agree with it, but I get it. We have a gold reserve. Bitcoin is digital gold, which is better than analog gold. So let's create a Bitcoin reserve too. But what's the rationale for an XRP reserve? Why the hell would we need that?

Schiff wrote.

Outlook for the Crypto Strategic Reserve

The creation of the U.S. Crypto Strategic Reserve can be seen as a lead-up to the first-ever White House Crypto Summit, scheduled for March 7. The summit is expected to address not only current market trends but also potential regulatory measures, including stablecoin oversight. This event could mark the beginning of new strategic initiatives aimed at integrating digital assets into the U.S. economy.

Related: Bitcoin as a U.S. Strategic Reserve Asset: How Likely Is It?

Trump’s announcement of the crypto strategic reserve marked a significant moment for the market, which had been experiencing a significant correction. This move could play a major role in establishing cryptocurrencies as a recognized part of the national economy in the long run. 

However, questions still surround the specifics of the crypto reserve and its future developments. 

Related: VCs: Trump’s Crypto Reserve Could Shape Global Trends