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Trump crypto reserve: "This strategic reserve is largely PR"

ended 03. March 2025

Last night Trump announced on his Truth Social platform that his administration would create a US crypto reserve comprising Bitcoin, Ethereum, Solana, Cardano and XRP. It caused Bitcoin to rise sharply along with other cryptocurrencies. Newspage asked crypto experts and economists for their thoughts. One, Gabriel McKeown, Head of Macroeconomics at Sad Rabbit Investments, said “it is unlikely to be a silver bullet for the market's ongoing struggles. It has undoubtedly injected fresh momentum into the crypto space, but it does not erase the struggles that have plagued the market, as Bitcoin remains far from its previous peaks while investor sentiment remains fragile.” Another, David Belle, Founder of Fink Money, added: “This strategic reserve is largely PR. I do not see the utility of it, and it would only really work if the Fed were the buyer, not the Treasury.” Views will appear below until 10:00.

3 responses from the Newspage community

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Faisal Sheikh
Managing Director at Monmouth Capital
I don't think it's a great signal for the crypto market. This latest in a torrent of executive orders looks worryingly like a knee-jerk reaction to the "Trump trade" in crypto unwinding. The selection of individual currencies is also concerning. What role did the crypto players who helped fund Trump's presidential campaign play in this unprecedented intervention? The criticisms of this space include that markets are opaque (if not rigged), that there is no underlying utility beyond speculation, and that prices are controlled by a few large players. Do you want a significant proportion of your wealth in an asset class that is dependent on the stroke of a pen by the US President?
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Gabriel McKeown
Political & Economics Writer at Sad Rabbit - Substack Newsletter
Trump just sent crypto back into overdrive, with the price of Bitcoin surging in response to the Truth Social announcement, but the market will need more than just bold words to maintain this momentum. Following Trump's announcement, Bitcoin's price surged by approximately 10%, Ethereum experienced a 12% rise, while XRP, Solana, and Cardano saw even more substantial gains. This latest crypto endorsement arrives at a time when investors are looking for any sign of stability in the market, as escalating geopolitical tensions and aggressive trade policies have further unsettled global markets. However, while some see the proposed US Crypto Strategic Reserve as a bullish sign for mainstream adoption, it is unlikely to be a silver bullet for the market's ongoing struggles. It has undoubtedly injected fresh momentum into the crypto space, but it does not erase the struggles that have plagued the market, as Bitcoin remains far from its previous peaks while investor sentiment remains fragile.
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David Belle
Founder and Trader at Fink Money
This strategic reserve is largely PR. I do not see the utility of it, and it would only really work if the Fed were the buyer, not the Treasury. The concern here is that, sure, they might become an indiscriminate buyer, but there is no yield. This means that to monetise, it has to be sold. An indiscriminate buyer becoming an indiscriminate seller is a problem, and what happens if in future, there is a President who is not crypto friendly? Do they market sell to fund part of their government?