The cryptocurrency market has grown by more than $500 billion after US President Donald Trump announced the creation of a strategic reserve of digital assets, The Independent reports.
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In his post on the Truth Social platform, he noted that the reserve would include Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).
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Following the announcement, all five cryptocurrencies rose in price, bringing the total market capitalization back above $3 trillion after a week-long decline.
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Bitcoin jumped from $85,000 to $95,000 within hours of Trump's announcement, but later fell back to $92,000.
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It's still far from the record highs of over $109,000 in late January, which were driven by optimism surrounding Trump's inauguration and his promise to become the first-ever "cryptocurrency president.”
More information about the strategic reserve will be made public on Friday, March 7, when Trump will hold the first cryptocurrency summit at the White House.
Industry experts believe that the US initiative could lead to a "cryptocurrency arms race" as other countries try to keep up.
Trump first voiced the idea of a strategic crypto reserve during the election campaign, when he said that it could be funded by assets confiscated as a result of law enforcement actions.
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