Trump's Cryptocurrency Endorsement: Inclusion in US Strategic Reserves Sends Shockwaves Through Crypto Market, Bitcoin Reclaims $90,000

Trump's Cryptocurrency Endorsement: Inclusion in US Strategic Reserves Sends Shockwaves Through Crypto Market, Bitcoin Reclaims $90,000The cryptocurrency market recently witnessed a dramatic rollercoaster. After a nerve-wracking plunge, Bitcoin and other major cryptocurrencies staged a strong rebound on March 3rd, with Bitcoin's price surging back above $90,000, leaving many short-sellers in despair

Trump's Cryptocurrency Endorsement: Inclusion in US Strategic Reserves Sends Shockwaves Through Crypto Market, Bitcoin Reclaims $90,000

The cryptocurrency market recently witnessed a dramatic rollercoaster. After a nerve-wracking plunge, Bitcoin and other major cryptocurrencies staged a strong rebound on March 3rd, with Bitcoin's price surging back above $90,000, leaving many short-sellers in despair. This surge was fueled by a statement from former US President Donald Trump announcing the inclusion of XRP, Solana (SOL), and Cardano (ADA) into the US cryptocurrency reserves a bombshell that ignited market enthusiasm.

Trump's "Naming Effect" and Market Upheaval

Among the surging cryptocurrencies, the three specifically mentioned by Trump XRP, Solana (SOL), and Cardano (ADA) were particularly eye-catching, registering gains of 14%, 11%, and 44%, respectively. However, the deeper significance lies in the regulatory signals this move conveys. Analysts suggest that the US government's decision to include digital assets in its reserves marks a shift from mere risk mitigation to institutionalized management, potentially prompting major markets globally to reassess their digital asset regulatory strategies.

Trump was again the direct trigger for Bitcoin's surge. Following announcements of a White House summit on cryptocurrencies scheduled for March 7th, Trump posted multiple updates on his TruthSocial platform late on March 2nd, explicitly stating the inclusion of XRP, SOL, and ADA into US cryptocurrency reserves. This news instantly triggered a chain reaction in the crypto market, rapidly escalating market fervor.

According to CoinGecko, as of 5:40 PM on March 3rd, Bitcoin was priced at $91,940.74, representing a 24-hour increase of 6.9%; Ethereum rose by 4.4% to $2,347.35. The three cryptocurrencies named by Trump saw even more impressive gains. As of 5:40 PM on March 3rd, XRP reached $2.58 (a 14% increase in 24 hours), Solana (SOL) surged over 11% to $159.68, and Cardano (ADA) jumped 44.1% to $0.9591.

The "long" and "short" mechanisms in the cryptocurrency market cause drastic price swings that heavily impact investors. This surge dealt a significant blow to "short" players, while the large price fluctuations exacerbated liquidation events. Coinglass data showed that nearly 220,000 cryptocurrency contracts were liquidated in the past 24 hours, totaling approximately $961 million (approximately RMB 7.008 billion).

Market Liquidity Issues Behind the Volatility

It's noteworthy that just days prior, the cryptocurrency market experienced a panic sell-off. On February 26th, Bitcoin's intraday price fell by over 5%, dipping below $84,000 and representing a nearly 20% correction from its all-time high; on February 28th, it fell below $80,000, its lowest point since November 2024, a near $30,000 drop from its year's peak.

Yu Jianing, co-chair of the Blockchain Special Committee of the China Communications Industry Association, points out that Bitcoin's recent volatility is largely due to insufficient market liquidity. Reduced market depth makes prices more susceptible to external news, amplifying the impact of any policy signals or market sentiment changes and leading to extreme short-term price swings. Liquidity scarcity significantly magnifies the effect of policy news on market sentiment. Positive policy expectations lead to increased investor enthusiasm, driving up prices; conversely, if policy expectations are unmet or negative regulatory news emerges, pessimism spreads quickly, and selling pressure surges.

Yu Jianing uses the policy shifts of the Trump administration as an example. The Federal Reserve's shift to a hawkish monetary policy stance exacerbated market anxieties, triggering a new round of Bitcoin sell-offs. Furthermore, Trump's support for digital assets during his presidency was noticeably weak, and previously promised favorable policies failed to materialize, creating a policy vacuum. Only when Trump's statements and related administrative actions showed signs of action did the market react swiftly to the information, causing intense market fluctuations.

The Profound Significance of Formal Inclusion in US Strategic Reserves

It's worth noting that this isn't the first time Trump has mentioned cryptocurrencies as strategic reserve assets. During his 2024 presidential campaign, he proposed making Bitcoin a US strategic reserve asset and promised to simplify cryptocurrency regulations and support stablecoin frameworks, earning him millions of dollars in campaign support from the cryptocurrency industry.

Following his re-election, Trump continued his efforts in the cryptocurrency space. Before this announcement, he signed an executive order establishing a task force to study the feasibility of creating a national digital asset reserve and develop a clear regulatory framework for the crypto industry. However, the executive order didn't specify which digital assets would be included.

Thanks to Trump's strong support, Bitcoin launched a new round of robust growth starting in September 2024, consecutively breaking through several key price points and exceeding $100,000 in December 2024. In January 2025, Bitcoin briefly approached $110,000, reaching an all-time high of $108,786.

On social media, Trump revealed more details about the strategic cryptocurrency reserves. He stated: "After years of malicious suppression by the Biden administration, America's cryptocurrency reserves will propel this vital industry forward. That's why my executive order on digital assets instructed the Presidential Task Force to advance a strategic reserve plan that includes XRP, Solana (SOL), and Cardano (ADA). I will ensure that the United States becomes the global capital of cryptocurrency." Trump further stated that Bitcoin and Ethereum, as other valuable cryptocurrencies, would form the core of the reserve.

The Impact of US Cryptocurrency Reserves on Global Markets

With XRP, Solana (SOL), and Cardano (ADA) confirmed as US strategic reserve assets, what changes will the cryptocurrency system face? Yu Jianing believes this decision sends a powerful policy signal, indicating a substantial shift in the status of digital assets within the global financial system. Traditional financial markets' acceptance of digital assets has been hampered by regulatory uncertainty, but the national-level reserve measure signifies official recognition of these assets' legitimacy. This could prompt more institutional investors to reassess the role of digital assets in their portfolio allocation.

Yu Jianing points out that the US, as a global financial center, wields significant international influence with its policy initiatives. Other countries may, as a result, reassess the reserve value of digital assets and adjust their regulatory strategies, further promoting the integration of digital assets with mainstream financial systems. An institutionalized path for digital assets is forming, and the depth and breadth of policy support will determine the speed and impact of this process.

Renowned economist Pan Helin believes that Trump's move could potentially undermine the credibility of the US dollar and erode confidence in the dollar as a reserve currency among nations worldwide. Future national reserves will likely diversify, potentially leading to a gradual de-dollarization.

The Future Trajectory of Cryptocurrency Regulation

• Given the potential spillover risks of crypto assets to financial system stability, regulatory bodies worldwide have adopted varying approaches, but overall regulatory intensity has significantly increased. According to the China Financial Stability Report (2024) released by the People's Bank of China in late 2024, 51 countries and regions have already implemented bans on crypto assets, and some economies have adjusted existing laws or enacted new legislation to regulate them.

• Specific regulatory measures include the US's enforcement of existing regulations against issuers of crypto assets violating securities laws; the approval of a Bitcoin spot ETF by the US Securities and Exchange Commission in January 2024; the EU's approval of the Markets in Crypto-assets Regulation (MiCA), establishing the world's first comprehensive and clear regulatory framework for digital assets; the UK's inclusion of crypto assets under the Financial Services and Markets Act; Singapore's release of a Stablecoin Regulatory Framework; and Japan's enactment of the Funds Settlement Act.

In 2025, not only did the US confirm the inclusion of certain cryptocurrencies into its strategic reserves, but Hong Kong also took steps in the cryptocurrency asset realm. On February 19th, the Hong Kong Securities and Futures Commission released the ASPIRe regulatory roadmap for the virtual asset market, outlining 12 measures based on five core pillars, providing a clearer framework for compliant custody, investment management, and family trust structures in Hong Kong's virtual asset market.