US crypto reserve: Trump’s move fuels markets

Traders were asleep when the news hit, but their portfolios woke up fast. Overnight, President Donald Trump confirmed that the US would begin holding cryptocurrency reserves, a move that fueled optimism in a market hungry for bullish news.

“This was a very much needed shot in the arm for the crypto market,” said Bilal Ahmed Mir, a crypto asset manager at Carter Capital, in an exclusive interview with The Crypto Radio.

Trump’s announcement, posted on Truth Social, formalized speculation that the government would add digital assets to its reserves. While Trump has been openly pro-crypto, his administration’s move toward holding crypto signals a tangible policy shift—one that could accelerate mainstream adoption.

A major shift in US crypto policy

“It's a very big step in legitimizing and entrenching crypto as an institutional asset class,” explained Mir.

The plan initially included XRP, Solana, and Cardano, with Bitcoin and Ethereum added soon after.

Markets reacted instantly.

“We saw a massive increase in price overnight,” said Mir.

Cardano surged 60% in less than 24 hours, while the broader crypto market rebounded after a tough week.

Market reaction: Prices surge overnight

Mir breaks down the implications of Trump's surprise crypto announcement and what it could mean for the future of the industry.

“Sentiment was very, very bad” in the crypto market prior to the news, said Mir. “The fear and greed index was lower than it was right after the FTX [crypto exchange] collapse.”

So what prompted this sudden change of heart from the president? Mir speculates that there may have been some insider trading activity before the announcement, with large positions being taken on decentralized exchanges.

“The cynic inside of me says that those that knew about this announcement… saw the massive price pump on the smaller tokens and then the large tokens followed.”

However, Mir noted that the announcement may have simply omitted Bitcoin and Ethereum initially, assuming people would know they would be included. Regardless of the reason, the impact on the market was immediate and dramatic.

What’s next for US crypto adoption?

Looking ahead, Mir believes this move could further cement the US as the global hub for crypto.

“Whereas a lot of crypto talent previously found homes in the UAE or Singapore or elsewhere, I do think some of that will start to flow back to the USA now.”

This is a stark reversal from the US government's previous stance. Under the Biden administration, the SEC had been pursuing high-profile cases against crypto companies like Coinbase and Ripple. But now, those cases have all been dropped, signaling a more crypto-friendly approach.

Institutional investors weigh the risks

Mir credits this shift to the “crypto savvy and crypto active people” that Trump has appointed to key positions, like David Sachs as the crypto and AI czar.

“They are all very, very knowledgeable, active market participants, be that crypto or traditional markets or both,” he said.

This new regulatory clarity and support could pave the way for more institutional adoption of crypto. Mir points to recent announcements from major players like Bank of America and Citadel as evidence of growing interest.

Of course, not everyone is thrilled about Trump's endorsement of crypto. As a highly polarizing figure, his support could actually backfire and turn some people against the industry.

“There are a huge portion of the population that simply can't stand him, and they treat anything he says or supports with complete disdain,” Mir acknowledged.

But for the most part, Mir believes institutional investors will remain unfazed by the political implications.

“They don't give a hoot about political affiliations or who's in charge of the White House,” he said.

The composition of the new US Crypto Reserve remains to be seen. Mir speculates it could be an equal weighting across the top cryptocurrencies, a market cap-based allocation, or a more strategic fund manager-style approach. Regardless, the mere existence of such a reserve is a game-changer for the industry.

“This could spark the much, much talked about and much wished for alt season into life where alt coins, non-BTC coins, start to see massive price appreciations,” Mir said.

Overall, this surprise crypto announcement from the president has the potential to reshape the entire industry.

“This is going to be massively supportive and bullish for the crypto industry at large in a number of different ways.”