News of U.S. President Donald Trump signing an executive order to establish the Strategic Bitcoin Reserve for the United States has so far had little effect on the crypto market, with traders seemingly still skeptical about the government’s crypto strategy.
The five cryptocurrencies in the Strategic Bitcoin Reserve
In a Truth Social post on March 4, Trump revealed the U.S. government were planning to stockpile five cryptocurrencies: Solana (SOL) and Cardano (ADA), as well as the more renowned XRP, Bitcoin (BTC) and Ethereum (ETH).
“A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA. I will make sure the U.S. is the Crypto Capital of the World. We are MAKING AMERICA GREAT AGAIN!”
“And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum!”
Immediately after Trump’s announcement, all five cryptocurrencies saw significant price rises, although they later suffered huge drops before partially recovering, with traders seemingly unsure as to what might happen next.
Despite Trump stating Solana (SOL), Cardano (ADA), XRP and Ethereum (ETH) would be included in the Strategic Bitcoin Reserve, none of the tokens were specifically named in the executive order.
And according to White House A.I. & Crypto Czar David Sacks, the reserve includes coins already owned by the U.S. government, with no immediate purchases of more bitcoins planned. According to Arkham, the United States currently owns more than 198,000 bitcoins worth about $17 billion.
Crypto market reacts to Strategic Bitcoin Reserve
The combination of those factors means the effect on the value of the five cryptocurrencies has been less than might have been expected.
At the time of writing, Bitcoin is hovering under $90,000, up nearly 4% over the last seven days, according to CoinGecko.
Ethereum (just over $2,000), the world’s second-most owned cryptocurrency, is down just under 3%, while Solana ($146), the blockchain on which Trump’s own token was created, has had no change over seven days.
XRP ($2.46) and Cardano (just under $0.85) are up 14.3% and 34.2% over that time period, but have suffered losses in recent days.
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