Trump’s Two Tweets Ignite the Market: Is the U.S. Crypto Strategic Reserve Really Coming?

⭐ SuperExMedia · 2025-03-04T14:43:00Z

#Trump #Crypto #SuperEx

From March 2 to March 3, 2025, U.S. President Donald Trump posted two consecutive tweets on Truth Social, announcing plans to establish a strategic crypto reserve, which would include BTC, ETH, XRP, SOL, and ADA, emphasizing that “BTC and ETH will be the core reserves.” This statement immediately ignited market sentiment, causing the total cryptocurrency market capitalization to surge by over $300 billion in a single day. The named tokens experienced price increases of more than 10%, with some projects skyrocketing by over 60%.

However, behind this euphoria, the authenticity of the U.S. crypto strategic reserve, the feasibility of its implementation, and its long-term impact on the market still require in-depth analysis from multiple perspectives.

Market Reaction: From “Deep Waters” to a “V-Shaped Rebound”

Since Trump’s election victory in 2024, the crypto market has experienced months of volatility and correction. By the end of February 2025, Bitcoin had dropped from its all-time high of $109,558 to below $80,000, with some altcoins falling over 50%. However, Trump’s tweet on March 2 marked a turning point for the market. According to CoinGecko data, within 24 hours of the announcement:

BTC surged from $83,000 to $95,000, a 14.5% increase.
ETH rebounded from $2,100 to $2,500, rising 19%.
XRP and ADA gained 33% and 60%, respectively, leading the rally.

The total market capitalization climbed from $2.9 trillion to $3.2 trillion, with a net inflow of over $50 billion in a single day — setting a new record since the approval of spot Bitcoin ETFs in 2024. Spencer Hallarn, Global Head of OTC Trading at crypto investment firm GSR, noted that Trump’s statement “directly triggered a scramble among traders to rebuild long positions,” especially as institutional funds, which had previously sold off due to tariff policy concerns, quickly flowed back into the market.

However, this short-term price surge has not completely dispelled market skepticism. Some Bitcoin advocates are wary of including smaller, riskier tokens in a national strategic reserve, fearing it could dilute Bitcoin’s value as a reserve asset.

For example, prominent investor Tyler Winklevoss and Coinbase CEO Brian Armstrong questioned the decision, arguing that a national reserve should focus solely on Bitcoin to strengthen its role as a store of value and digital gold. James Butterfill, Head of Research at CoinShares, remarked that Trump’s inclusion of XRP, SOL, and other tokens in the reserve “lacks fundamental support” and appears more like a political gesture rather than a rational investment choice. Moreover, by the Asian trading session on March 3, the market showed signs of a slight pullback, with Bitcoin dipping to around $93,000 — indicating that speculation still dominates sentiment.

In addition, market analysts have expressed concerns regarding the specific implementation details of this strategic reserve plan. Key issues such as the source of funding, allocation methods, and regulatory framework remain unclear. Some analysts have pointed out that if the reserve plan relies on taxpayer funds or seized assets, it could spark public skepticism and opposition. Furthermore, the government’s holding of decentralized cryptocurrencies has sparked discussions about its contradiction to the decentralized ethos of cryptocurrencies.

From “Crypto Skeptic” to “Industry Advocate”

Trump’s shift in stance on cryptocurrency has been dramatic. In 2020, he publicly criticized Bitcoin as being “based on thin air” and accused it of facilitating illegal activities. However, during his 2024 campaign, he not only accepted crypto donations but also pledged to make the U.S. the “world’s crypto capital.” This transformation was driven by strong support from the crypto industry for Trump’s campaign.

According to Alex Xu, a research partner at Mint Ventures, projects such as SOL, XRP, and ADA had been actively engaging with Trump’s team since 2024, leveraging political donations and inaugural sponsorships to secure favorable policies. For example, the Cardano (ADA) Foundation reportedly donated millions of dollars to Trump-affiliated Super PACs. This direct financial influence is evident in Trump’s tweets — he specifically named these three tokens instead of higher-market-cap assets like Binance Coin (BNB) or Polkadot (DOT).

Regulatory Easing and the Strategic Reserve as a Symbolic Move

A key part of Trump’s policy agenda is dismantling the strict regulatory framework established during Biden’s administration. Under Biden, SEC Chair Gary Gensler launched dozens of lawsuits against crypto firms without providing clear compliance guidelines, earning criticism for using enforcement as a substitute for regulation. Since Trump’s return to office, the SEC has not only dropped its lawsuit against Coinbase but also repealed the controversial SAB 121 policy, which had required institutions to include custodial crypto assets on their balance sheets, thereby limiting traditional financial institutions’ participation in the crypto space.

While the merits of these policies are beyond the scope of this discussion, from a crypto finance perspective, regulatory easing and the strategic reserve concept mark a watershed moment.

Trump’s tweets can be seen as a major step in reinforcing his pro-crypto stance in 2025. Notably, by specifically highlighting Bitcoin and Ethereum as core reserve assets, Trump’s statement is more than just a personal investment preference — it could signal a major shift in U.S. fiscal policy.

Will the U.S. Establish a National Crypto Reserve?

The concept of a “crypto strategic reserve” mentioned in Trump’s tweets has sparked widespread debate. If the U.S. government truly begins to stockpile BTC and ETH, it would be an unprecedented historical shift that could fundamentally reshape the global financial landscape.

Historically, national reserves have played a crucial role in economic security. Traditionally, foreign exchange reserves consist of stable assets such as the U.S. dollar, euro, and gold. However, as de-dollarization trends accelerate and crypto assets gain wider adoption, more institutions and governments are considering digital assets as part of their reserves. For example, since El Salvador adopted Bitcoin as legal tender in 2021, it has continued accumulating BTC as a national reserve. Similarly, in 2024, sovereign wealth funds from the UAE and Singapore began gradually incorporating crypto assets into their portfolios.

If the U.S. officially establishes a crypto strategic reserve, it would mark a major step toward decentralization in global finance. As the world’s leading financial powerhouse, any policy shift from the U.S. would have far-reaching global implications. Notably, the U.S. government has previously seized large amounts of Bitcoin through legal actions, and how these BTC holdings will be handled remains a focal point of market speculation. If the government integrates these assets into a strategic reserve, it could further boost market sentiment.

Implications for the Market and Investors

Regardless of whether the U.S. formally establishes a crypto strategic reserve in the near term, Trump’s statement has already become a major market catalyst. Moving forward, more countries may begin exploring ways to incorporate crypto assets into their official financial strategies. Meanwhile, institutional investors’ confidence is likely to grow even stronger.

For retail investors, this announcement underscores the long-term investment value of Bitcoin and Ethereum. If the U.S. government truly pursues a crypto reserve strategy, BTC and ETH could experience significant long-term appreciation.

However, investors must remain cautious and closely monitor future U.S. policy developments. While the crypto market has responded positively, volatility remains high, and regulatory uncertainties could still trigger short-term fluctuations. It is essential to stay rational and avoid impulsive investment decisions.

Final Thoughts

Trump’s two tweets ignited the market within hours. Regardless of how the policy unfolds, one thing is clear — crypto is steadily moving toward mainstream adoption and could soon be considered a national-level asset class. This is not just a victory for the crypto market but also a significant signal of transformation within the global financial system.