White House "HODL Plan" Launches: Unpacking the Logic Behind the Market Rally
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White House "HODL Plan" Launches: Unpacking the Logic Behind the Market Rally
The cryptocurrency market will continue to search for the next major catalyst.
Navigating Web3 tides with focused insightsAuthor: The Kobeissi Letter
Translation: TechFlow
President Trump announces U.S. Strategic Crypto Reserve as Bitcoin price breaks $94,000.
President Trump has officially unveiled a major initiative—the creation of a "U.S. Strategic Crypto Reserve"—and pledged to make America the global leader in cryptocurrency. The announcement triggered an immediate market surge, with the total crypto market cap increasing by over $300 billion within just three hours.
In a statement released on February 3, 2025, at 10:24 AM (ET), President Trump declared that the U.S. would solidify its leadership in the global crypto landscape through a "Cryptocurrency Strategic Reserve." However, in this initial announcement, only Ripple ($XRP), Solana ($SOL), and Cardano ($ADA) were mentioned.
The news sparked sharp price increases for the listed tokens. Cardano ($ADA) surged 64% in a short period, while Ripple ($XRP) and Solana ($SOL) rose 30% and 21%, respectively.
However, investors quickly noted that Bitcoin (BTC) and Ethereum (ETH) were absent from the initial reserve list, prompting speculation and debate across markets.
In fact, as early as January 16, the New York Post reported that President Trump planned to propose an "America First" crypto reserve focused on U.S.-based digital currencies such as Solana, USD Coin, and Ripple.
But at 12:11 PM (ET), Trump updated his statement, clarifying:
"Clearly, Bitcoin and Ethereum, as other valuable cryptocurrencies, will be core components of the reserve."
This follow-up came days after Trump’s son, Eric Trump, suggested buying the dip on social media, signaling optimism about the recent crypto price correction.
Since the announcement, Bitcoin's price has rapidly rebounded, now surpassing $94,000—a nearly 20% increase from recent lows.
From last Friday at 3:00 PM (ET), Bitcoin surged from $78,200 to over $94,000. This not only marks a definitive exit from bear market territory but also means it is now just about 16% away from its all-time high.
David Sacks, Trump’s lead advisor on crypto affairs (@DavidSacks), stated that further details will be revealed at an upcoming crypto summit.
President Trump will host the first-ever White House Cryptocurrency Summit on March 7. This historic event has drawn widespread attention, with rumors suggesting that the strategic reserve list may expand to include additional cryptocurrencies.
Moreover, this Strategic Crypto Reserve could pave the way for the U.S. government to migrate all federal spending onto blockchain technology.
A month ago, Elon Musk proposed a similar idea—adopting a decentralized ledger to record the U.S. government’s $6.9 trillion annual expenditures. If implemented, blockchain could significantly reduce auditing costs, saving billions annually compared to legacy systems.
Yet a critical question remains: Why has the strategic reserve evolved from an initial focus on Bitcoin to include a broader range of cryptocurrencies?
During Trump’s campaign, there was a proposal for the U.S. to purchase between 2.2 million and 4 million BTC. However, no clear policy rationale has been provided for the expanded scope of the reserve, fueling market speculation.
To date, we can identify several key developments:
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The Securities and Exchange Commission (SEC) has taken a supportive stance toward cryptocurrencies;
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The Trump administration has clearly expressed pro-crypto policies;
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The establishment of a Cryptocurrency Strategic Reserve has been announced;
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The SEC has dropped multiple lawsuits against crypto firms;
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Trump has launched his own memecoin;
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The SEC has stated that memecoins do not qualify as securities.
This could arguably be the most crypto-supportive U.S. administration in history.
Notably, last Friday, the Nasdaq-100 Index rose 2% in the final three hours before market close, despite a lack of apparent catalysts. This raises questions—did someone have prior knowledge of the crypto reserve announcement?
We expect that when futures trading resumes, tech stocks may open sharply higher, driven by momentum from the crypto reserve news.
Looking ahead, the crypto market is searching for its next major catalyst. With many of Trump’s campaign promises already priced in, the market is now entering uncharted territory.
Will Bitcoin set a new all-time high this month? Only time will tell.
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