Data: CoinGecko; Chart: Axios Visuals
President Trump on Sunday identified three cryptocurrencies that would be in a U.S. strategic reserve, sparking a $100 billion global rally in digital currencies after a recent market drubbing.
Why it matters: The value of the three — XRP, SOL and ADA — shot up on the news, while also lifting bitcoin, the original cryptocurrency, and the first that Trump said the U.S. should never sell.
What they’re saying: “A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration,” Trump wrote in a Truth Social post.
By the numbers: All three coins rose anywhere from 20% to 50% in a matter of minutes after Trump’s post, leading a rally that lifted most major coins.
- The market capitalization of the entire global crypto industry rose about $103 billion in an hour to just over $3.01 trillion as of 11 a.m. ET, per CoinGecko data.
- That followed a broad-based sell-off that saw market capitalization fall 13%, or more than $300 billion, in the last week.
Zoom out: The U.S. already holds $17 billion worth of bitcoin, according to research firm Arkham Intelligence.
- It has many other cryptocurrencies as well.
- All of these assets were seized from criminal enterprises. Normally, law enforcement would sell the assets to support their operations or for victim restitution.
- The current assets Arkham has tracked in U.S. custody do not include the three coins Trump named.
- However, the government could easily trade other assets for those three — but that’s a considerably more active strategy than just sitting on whatever the Feds seize.
Between the lines: The president has made a language shift on this initiative. Previously, he had described it as a stockpile in his executive order, rather than a strategic reserve.
- A strategic reserve implies that there may be some intent for the holdings, whereas a stockpile connotes a more passive approach.
What we’re watching: When the reserve becomes an official program.
- At this stage, it appears to remain in a work in progress.
Editor’s Note: This story has been updated with details on the market rally.
