Trump’s Crypto Power Play - The US Crypto Reserve and Its Impact

The announcement from US President Donald Trump about creating a national strategic crypto reserve has taken the crypto market by storm. As per the announcement, the national crypto reserve will be based on the 5 cryptocurrencies. Trump stated that he will make the US the crypto capital of the entire world. 

In one of Trump's social media statements, a group of crypto experts is set up to work on creating the crypto reserve right after his inauguration in January 2025. It was the promise made by Donald Trump to the crypto lobbyists throughout his election campaigns. Right after the announcement on Sunday, the crypto prices jumped for the named cryptos in the national reserve after a long week of being in the bearish trend.

The action marks a significant shift in US policy and comes ahead of Friday's first-ever White House Crypto Summit. The administration of former President Joe Biden pushed down on the sector due to allegations of fraudulent transactions.  During his first term in office, Trump himself was a crypto skeptic. He had referred to the biggest cryptocurrency at the time, Bitcoin, as a "scam."

However, Trump criticized the Biden-era practices as "corrupt" in his announcement on Sunday. He said, "The crypto reserve will elevate this critical industry after years of corrupt attacks by the Biden administration. I will make sure the US is the crypto capital of the world. We are making America great again.”

Trump first stated in his posts on Sunday that the new national cryptocurrency reserves would include cryptocurrencies like XRP, Cardano, and Solana. However, an hour later, the president stated in another post that "and obviously, BTC and ETH will be at the heart of the Reserve," indicating the two most valuable cryptocurrencies at the moment.

Markets responded favorably to the announcement right away, with Cardano rising over 60% to $1.25 from the $0.65 in the cryptocurrency market. However, by Monday, it had once more leveled off at roughly $0.97. XRP surged from $2.25 to $3 while Solana rose from roughly $150 to $170, with both currencies rising at roughly 12% and 20%, respectively.

Ethereum and Bitcoin increased by over 10%, with the Bitcoin dip rising from $86,000 to $94,000. Trump attracted the cryptocurrency business during his campaign and committed to take strong action to assist the currencies. The cryptocurrency market saw a huge rise in price after his election victory in November. You can see Bitcoin, which managed to hit an all-time high of $109,000.

Governments increasingly view holding digital currencies like Bitcoin as a hedge against inflation and an alternative store of value to gold. However, according to other analysts, the cryptocurrency market is extremely uncertain in terms of price fluctuations, making it a risky alternative to gold as a store of wealth.

Cryptocurrencies could be used as legal money in several nations that own digital currencies that have been seized during criminal investigations. While Brazil, Germany, Hong Kong, Poland, and Russia are thinking about or working to create cryptocurrency reserves, Switzerland intends to make a decision on them following a public referendum.

With 200,000 Bitcoins, the US government presently owns the most cryptocurrency of any nation. Trump's actions are thought to be giving other coins more legitimacy. Due to the US's huge impact as the largest economy in the world, more nations are probably going to enter the game if plans for the US Donald Trump crypto reserve move forward.

Trump's support for cryptocurrencies will put America at the forefront and give it significant influence over future developments in global crypto rules. Additionally, the US government would be able to lower the volatility of the prices of these digital currencies if it owned a significant share of the global cryptocurrency market through a reserve.

Republican Senator Cynthia Lummis proposed the Bitcoin Act in Congress in July 2024, calling for the creation of a crypto reserve and requiring that any Bitcoin held by the government be moved to the US Treasury. Lummis added that having such a reserve would enable the US to transparently manage its existing Bitcoin holdings.

She said, “Bitcoin is transforming not only our country but the world and becoming the first developed nation to use Bitcoin as a savings technology secures our position as a global leader in financial innovation.”

Bitcoin and other currencies are held in several nations and are frequently recovered by law enforcement concerning illegal conduct. Among the countries holding crypto reserves are the following:

• USA: According to Bitcoin Treasuries, a trading website, the United States has 200,000 Bitcoins, with a total value of roughly $16.7 billion.

• China: Due to the government's difficulties in regulating cryptocurrency, transactions are currently prohibited in China. The Chinese central bank would support the digital money that the Chinese government is developing. About 194,000 Bitcoin, worth roughly $16.2 billion (as of March 4), are currently in China's possession after being confiscated from Ponzi scam businesses.

• United Kingdom: According to cryptocurrency company Binance, the UK government is in possession of roughly 61 Bitcoin that were seized from global money laundering networks.

• Ukraine: Because of the current Russian assault on Ukraine, it has approximately 1,200 Bitcoin from donations from the public. That is worth roughly $100 million.

• Finland: It possesses around 890 Bitcoin, valued at approximately $74 million, which was found during investigations against drug trafficking.

• India: India had 450 Bitcoin worth an estimated $37 million that was seized following investigations into cryptocurrency fraud.

Return on investment is not the only main factor, but many other significant factors must be considered when when going for a long term crypto investment. The most crucial factor that makes blockchain better than Bitcoin is the hybrid technology comprising of DAG and traditional blockchain. 

With the BlockDAG X1 miner app, it is now possible to mine on mobile devices without the need for expensive installations. The X1 Miner democratizes the mining process and puts the large-scale operations that control Bitcoin mining to the test.

If we take a closer look in terms of investment, BlockDAG is a better choice than BTC. One of the reasons is the very low risk factor. Since Bitcoin is the pioneer of cryptocurrencies, it has the potential to make huge fluctuations and impact the entire crypto market. However, BlockDAG is in the presale stage and is set to launch in 2025. 

More than $197.5 million is successfully raised during BlockDAG's ongoing presale, and more than 18.5 billion BDAG coins are sold. With the current price of Batch 27 at $0.0248, early adopters from the first batch have experienced returns of 2,380%.  By 2025, BDAG might hit $1, according to projections, providing a 3,930% potential return.