- Trump’s crypto push fuels market surge, with Bitcoin hitting $95K and Ethereum, Cardano, and Solana posting significant gains.
- Regulatory shift favors crypto, as SEC drops cases against Coinbase and other exchanges, signaling a friendlier stance from the administration.
- Ethical concerns emerge, as White House crypto advisor David Sacks faces scrutiny over retained stakes in blockchain startups.
President Donald Trump’s latest support for cryptocurrency has driven a sharp rise in digital asset prices. Trump, on Sunday, stated that the U.S. strategic reserve would be made up of Bitcoin and other digital assets. This caused the prices of Bitcoin to surge 11%, hitting a high of $95,084 before settling at $93,165 on Monday. Ethereum also rose by 14%, while Cardano rose 71%.
Trump posted on Truth Social that Ethereum and Bitcoin will form the foundation of the reserve, accompanied by Solana, XRP, and Cardano. In addition, he reiterated his commitment to making America the leader in the world of cryptocurrency.
The proposal aligns with growing efforts in Congress to integrate digital assets into the national financial framework. A Republican-backed bill in the Senate seeks to allocate $94 billion for Bitcoin purchases. However, some lawmakers argue that such measures pose significant risks to taxpayers.
Market Reactions and Institutional Implications
Crypto traders and investors celebrated the announcement. The market has faced selling pressure in recent weeks, but Trump’s statement reversed that trend. Besides Bitcoin’s surge, Solana spiked 26%, reaching $180 before settling at $170. Furthermore, XRP climbed 37%, while Cardano demonstrated remarkable growth, reinforcing investor confidence.
Additionally, the government has taken steps to ease regulatory control. The SEC recently dropped its case against Coinbase, a shift in federal policy. Furthermore, probes into crypto exchanges like Gemini and OpenSea have also been put on hold.
Challenges and Future Outlook
Despite Trump’s pro-crypto stance, his administration has faced criticism for slow regulatory reforms. Crypto investors expected faster action in implementing promised changes. However, the administration’s long-term plan may become clearer at the next White House Bitcoin summit.
Furthermore, possible conflicts of interest have raised ethical questions. David Sacks, the White House’s AI and crypto advisor, has divested direct crypto holdings but retains stakes in blockchain startups. Consequently, ethics reviews are underway to ensure compliance.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
