Cryptocurrency market rebounds! Trump announces U.S. crypto reserves, five major currencies selected

In the midst of turmoil in the cryptocurrency market, Trump personally came to "put out the fire."

On Sunday, U.S. President Trump announced on his social media platform Truth Social that the U.S. cryptocurrency strategic reserve will focus on Bitcoin and Ethereum, while also including smaller and riskier tokens such as Solana, XRP linked to Ripple, and Cardano.

"The U.S. cryptocurrency reserve will elevate this key industry after years of corruption under the Biden administration," Trump wrote, "I will ensure that America becomes the global cryptocurrency capital."

As a result, the cryptocurrency market quickly rebounded. According to CoinMarketCap, as of the time of writing, Bitcoin rose 9% to $93,969, Ethereum increased 13% to $2,516, Solana surged 24% to $174.64, Cardano skyrocketed 70% to $1.11, and XRP climbed 34% to $2.93.

Oskar Aslund, Chief Strategy Officer of European cryptocurrency hedge fund broker AKJ, stated, "This is an extraordinary day for currencies like Cardano. The strategic reserve is the holy grail of the crypto market; it is everything they could hope for, transforming from some sort of experiment into a reserve currency for the U.S."

Before this round of rebound, the cryptocurrency market had experienced a sharp decline. Since Trump's inauguration, Bitcoin has continued to fall, with analysts believing that investors are frustrated with the Trump administration's failure to accelerate the implementation of some reforms he promised during his campaign.

In February, Bitcoin's monthly decline reached 18%, the largest single-month drop since June 2022. The downward trend intensified last week, with Bitcoin dropping 7.2% on Friday to $78,226, a 28% decline from its peak.

Trump's latest statement, combined with the anticipation of an upcoming cryptocurrency summit, has lifted the gloom in the cryptocurrency market and reversed the recent downward trend.

On March 7, the White House will host its first cryptocurrency summit, where Trump will deliver a speech. The summit will be hosted by Trump's artificial intelligence and cryptocurrency czar David Sacks, with industry CEOs, founders, and investors in attendance.

Trump first proposed the idea of a "national strategic Bitcoin reserve" during his keynote speech at the annual Bitcoin conference last July, but it remains unclear how the U.S. government will establish the reserve.

Analysts point out that one possible way to establish the reserve is for the U.S. government to retain Bitcoin seized from cybercriminals and dark web markets. According to cryptocurrency company 21.co, the U.S. government holds over 180,000 Bitcoins, valued at approximately $18 billion at current market prices