Trump’s Crypto Reserve Plan Sends Markets Surging Amid Investor Caution

U.S. President Donald Trump’s announcement of a national strategic crypto reserve featuring Solana (SOL), Cardano (ADA), and XRP triggered a market rally of up to 60% on Sunday. Later, he expanded the list to include Bitcoin (BTC) and Ethereum (ETH), fueling further bullish sentiment. However, traders remain cautious as legal and technical hurdles could delay implementation.

Federal Reserve Chairman Jerome Powell has previously stated that the central bank cannot hold Bitcoin reserves, raising questions about the viability of Trump’s proposal. "The market might see short-term corrections as investors assess the feasibility of the reserve and its legal implications," said Kevin Guo, director of HashKey Research, in a Telegram message to CoinDesk.

Trump is set to hold the first-ever White House Crypto Summit on March 7, where he is expected to outline regulatory plans and government support for the crypto industry. The anticipation of further announcements has driven Bitcoin to $93,000, marking a 6.5% increase, while the broader market, as tracked by the CoinDesk 20 index, rose 7%.

Other tokens, including Chainlink (LINK), Uniswap (UNI), and Movement (MOVE), surged 8%, largely due to their connections with Trump-backed World Liberty Financial. Despite this momentum, experts advise caution. "Volatility is expected until more details emerge, but sentiment has shifted toward a bullish outlook," noted Chris Yu, CEO of SignalPlus.

Investors are closely watching U.S.-traded crypto ETFs after recent record outflows. A rebound in ETF inflows could confirm the sustainability of the rally and signal a continuation of the bull market.