The global “crypto arms race” is on, and with Donald Trump announcing a strategic US reserve of digital assets, the stakes have been raised. The big question now is whether central banks see this as a signal to begin raising their own digital assets reserves.
President Trump last week announced the creation of a “strategic crypto reserve” that will include Bitcoin, Ether, XRP, Solana’s SOL token and Cardano’s ADA, in a post on Truth Social. It represents a level of official recognition in the US that crypto traders could only have dreamed of a year ago.
1. A reserve not a stockpile
This is the first time Trump has specified his support for a crypto “reserve” versus a “stockpile.” Other nations will likely feel compelled to respond, and in doing so, Bitcoin and the wider cryptocurrency market could be primed for unprecedented gains. The move could also cement the legitimacy of digital assets in a way that will redefine global finance, with Bitcoin forecast to soar to all-time highs of $200,000 by the end of 2025, according to some crypto analysts.
2. Crypto reserve removes uncertainty
Trump’s declaration that Bitcoin, Ether, XRP, Solana, and Cardano will be part of an official reserve is being hailed as nothing short of a financial revolution. For years, digital assets have operated in a space of uncertainty, battling regulatory ambiguity and institutional hesitance. That era now appears to be over.
The endorsement of these assets at the highest level of US policymaking signifies that crypto is not just here to stay — it will be integrated into the national financial strategy of the world’s largest and most influential economy.
With the strategic reserve, the US has fired the starting gun on the crypto arms race.
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3. Traders expecting reverse of crypto prices
It’s a clear indicator that digital assets will play a defining role in the future of money. This move can be expected to send the prices of Bitcoin and other major cryptocurrencies soaring as both institutions and retail investors rush to gain further exposure.
The psychological shift alone — whereby governments recognize crypto as a core asset class – could drive a tidal wave of new capital into the market. That said, Bitcoin is still dogged by worries about geopolitical risks – while the announcement could be good for BTC in the long term, short term it is still down 18% since 10 February.
As international governments are now likely to position themselves to compete in this new era, demand for Bitcoin and other cryptos is expected to surge, creating momentum that could propel Bitcoin to $200,000 by the end of 2025. The Armchair Trader predicted in December that Bitcoin would touch $150,000 before the end of this year.
4. A hedge against inflation
By formalizing a digital reserve, Washington is securing a hedge against inflation, strengthening economic sovereignty, and promoting innovation in blockchain technology. This strategic decision places the US ahead of global rivals in digital asset adoption, likely forcing other economic powerhouses to follow suit or risk losing ground.
For investors, this represents a generational wealth-building opportunity. Institutional adoption has long been the catalyst for price surges, and this development could drive one of the most significant bull runs in Bitcoin’s history.
5. It’s good for the US economy, too
The formal recognition of Bitcoin and other cryptocurrencies as part of a national reserve is a defining moment. This move should accelerate mainstream adoption, attracting new investors and reinforcing Bitcoin’s role as a store of value. The US economy stands to benefit enormously, as it secures a position at the forefront of the new financial era, creating jobs and driving growth in blockchain innovation.
