Cryptocurrency prices surge following Trump’s strategic reserve announcement
Since Donald Trump unveiled plans for a U.S. cryptocurrency reserve, digital currencies like Bitcoin have seen a significant rise in value. In a social media post, Trump mentioned that the reserve will include Bitcoin, Ether, and smaller tokens such as XRP, Solana, and Cardano.
Industry leaders are convening with President Donald Trump for the inaugural White House cryptocurrency summit on Friday, just a day after he signed an executive order to create a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile.
The U.S. digital asset stockpile aligns with Trump’s objective to position the U.S. as the “Crypto Capital of the World,” a statement he made in a Truth Social post earlier this week.
Trump indicated that Ethereum, XRP, Solana, and Cardano, in addition to Bitcoin and other notable cryptocurrencies, will be included in the U.S. strategic reserve. Following his announcement, the values of these five cryptocurrencies experienced substantial growth.
“The reserve will be funded by Bitcoin held by the federal government, which was seized during criminal or civil asset forfeiture actions,” stated White House crypto czar, billionaire David Sacks, in an X post on Thursday.
The Bitcoin placed into the reserve will not be sold, and both the Secretaries of Treasury and Commerce are tasked with formulating strategies for acquiring additional cryptocurrency without incurring costs for American taxpayers, according to the White House.
Bitcoin, the first established cryptocurrency, remains the most recognized of the digital currencies. It has sparked discussions in corporate boardrooms, courtrooms, and Congress. However, it continues to be a mystery to many Americans who have heard about it over the past decade.
What is Bitcoin?
Bitcoin is a digital currency and virtual payment method designed to operate independently of any central authority. Users can send and receive Bitcoin from anywhere in the world.
The main appeal of Bitcoin lies in its independence from government issuance and central banks. Unlike traditional fiat currencies like the U.S. dollar, which can be minted as needed, Bitcoin has a capped supply and is generated by computer systems.
Bitcoin transactions are recorded, verified, and updated using blockchain technology, which functions as an online public ledger that helps prevent fraud. Blockchain and Bitcoin were both introduced in 2009 by an individual or group known as Satoshi Nakamoto.
Known for its price fluctuations, Bitcoin has made several investors wealthy who entered the market at opportune moments.
As of Friday afternoon, Bitcoin is valued at approximately $87,000, with many investors owning fractional shares of it, according to NerdWallet.
There are multiple ways to purchase Bitcoin, including crypto exchanges, trading apps, or online brokers. Investors can also acquire Bitcoin funds like mutual funds or buy Bitcoin directly on platforms such as Cash App or PayPal.
Adam Shell contributed to this report. Reach Rachel Barber at [email protected] and follow her on X @rachelbarber_
