- Trump names Bitcoin, Ethereum, Solana, Cardano, and XRP as potential strategic reserves, triggering significant market movements.
- ADA surged 50% while XRP temporarily overtook Ethereum in fully diluted valuation amid broader market rally.
- Experts remain divided on the viability of cryptocurrency strategic reserves, with China reportedly planning similar initiatives.
The cryptocurrency market experienced dramatic price action this weekend after presidential candidate Donald Trump announced plans to establish strategic reserves of major digital assets including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), and XRP. The announcement triggered widespread rallies, with ADA surging 50% and XRP briefly overtaking Ethereum in fully diluted valuation.
The so-called “Trump Put” – referring to market confidence stemming from Trump’s pro-crypto stance – contributed significantly to the rally that saw Bitcoin reclaim dominance, now representing 62% of the total cryptocurrency market capitalization. This comes as Ethereum continues to underperform relative to other major tokens.
Sunday’s volatile price action resulted in bears losing approximately $550 million in liquidated positions. The market surge created the largest Chicago Mercantile Exchange (CME) gap in Bitcoin futures history, while one trader reportedly generated $12 million in profits from a $200 million perpetual futures position.
Brian Armstrong, CEO of Coinbase, suggested Bitcoin remains the best candidate for a crypto reserve currency due to its established history and market position. Meanwhile, Arthur Hayes, co-founder of Bitmex, expressed skepticism, suggesting that Trump’s crypto reserve comments are “just words” without concrete implementation plans.
The news comes as Mark Bailey reported that China is also considering establishing strategic cryptocurrency reserves, potentially creating a global race for digital asset accumulation. However, Thomas Jordan, President of the Swiss National Bank, countered that Bitcoin does not meet the necessary criteria to function as a legitimate reserve asset.
Institutional interest showed mixed signals as BlackRock added Bitcoin ETF to its model portfolios, ending an eight-day outflow streak for Bitcoin exchange-traded funds. Meanwhile, the SEC again delayed decisions on Ethereum ETF options on the Chicago Board Options Exchange (CBOE).
Solana gained approximately 20% following a major token unlock from FTX, demonstrating resilience despite the increased supply. Trump is expected to make an additional “investment announcement” today, potentially impacting cryptocurrency markets further.
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