A mere statement by former U.S. President Donald Trump has had a huge effect on the cryptocurrency market, pumping in $300 billion (around ₹26 lakh crore) worth of value. Trump, on Sunday evening, made an announcement on social media that he plans to add five cryptocurrencies to the U.S. strategic reserves. In response to this announcement, the Presidential Working Group released guidelines to set up these reserves.
Cryptos in the Strategic Reserves
The first batch of cryptocurrencies named for the reserves are XRP, Solana (SOL), and Cardano (ADA). Soon after, another announcement confirmed Bitcoin (BTC) and Ethereum (ETH) will be included in the reserves as well. Before, when Trump made an executive order on crypto, he did not mention the cryptocurrencies to be included.
In-Market Effect Instantly
After the announcement, the prices of the chosen cryptocurrencies jumped:
- XRP, SOL, and ADA were up by a price of 62%.
- Bitcoin and Ethereum are up by over 10%.
Bitcoin, which declined in February, has now rebounded rapidly.
Trump's Impact on the Crypto Market
Trump has always been an advocate of cryptocurrencies, even integrating them into his campaign during his election. President Joe Biden's administration, on the other hand, banned crypto as a result of money laundering and fraud concerns. Since Trump's election, Bitcoin's price rose a lot.
As soon as he assumed office, Trump had a Presidential Working Group dedicated to cryptocurrencies. The group is charged with creating policies and regulations for the industry. Also, most of the investigations that were carried out on crypto companies under the Biden administration have been shelved.
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