US President Donald Trump has announced the formation of a strategic Crypto Reserve, aiming to position the country as the "Crypto Capital of the World."

In a post on his social media platform Truth Social on Sunday evening, Trump revealed that the reserve would include five cryptocurrencies namely, Bitcoin, Ethereum, XRP, Solana, and Cardano.

“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,” Trump posted on Sunday.

The first of the three cryptocurrencies including Cardano, Solana and XRP surged as much as 60% immediately after the announcement on Sunday. Bitcoin and Ethereum also jumped by more than 10% each. Bitcoin rebounded 10% to $94,343.82 after dipping below $80,000 on Friday, while Ether gained 13% to $2,516. Other cryptocurrencies, including Dogecoin, Chainlink, Avalanche, and Sui, also experienced gains ranging from 9% to 14%.

Details on how the reserve will function remain unclear. More information is expected on Friday during the first White House Crypto Summit. His executive order on January 23 hinted at a "national digital asset stockpile" but did not specify cryptocurrencies.

The decision signals a dramatic policy shift, acknowledging the growing role of blockchain in the global economy. Previously, US policymakers had been sceptical of cryptocurrencies, however, this move signals a recognition of digital assets by the US government as legitimate financial instruments.

One of the reasons why Trump chose only these cryptocurrencies is possibly because of the widespread popularity of these currencies aside from their speed and efficiency, adding further credibility to their inclusion in the reserve.

Despite the intraday rise, Bitcoin has seen a steep 17.5% decline in February, marking its worst monthly drop since June 2022 and pushing it into a bear market. The cryptocurrency has lost over a third of its value since peaking at $109,071 in mid-January, hitting a three-month low of $78,273 on Friday before closing the month at around $84,252.

The selloff was fuelled by market volatility, concerns over a potential global trade war, and fading post-election euphoria over Trump’s expected pro-crypto stance.

why is crypto going up today

Donald Trump announces creation of Crypto Reserve; Bitcoin, Cardano, XRP, Solana surge upto 60%