In my opinion, March 2nd 2025 was the day crypto changed forever - the day that President Trump announced proposals for a Bitcoin strategic reserve, a move formalized by executive order just days later.
Why do I think this? Because the richest nation with the strongest economy in the world just announced that it’s officially bullish on crypto. And whether you like it or not, if you’re a US taxpayer, you’re invested in it.
And I’m not the only one who thinks this; market prices soared at the time as investors reacted, with both Bitcoin and Ethereum rising by more than 10%, XRP by more than 35%, and Cardano by more than 60% within hours. A selection of cryptocurrencies were initially included in the reserve including Bitcoin, Ethereum, XRP, Solana and Cardano. President Trump later clarified that only Bitcoin would be held in a strategic reserve whilst the other cryptocurrencies would form part of a ‘digital asset stockpile’.
A strategic reserve is a stockpile of essential assets maintained to prevent supply disruptions or economic instability risks. To put Trump’s announcement into context, Bitcoin could now be held in its own strategic reserve, in the same way oil, gold, food & foreign currency are, elevating it to the status of an asset that would be essential if a crisis were to threaten national security.
It's remarkable when you consider that Trump called Bitcoin a “scam against the dollar” as recently as 2021. Now, the US President considers the digital currency important enough to be depended upon if US finances fall on tough times.
This announcement is proof of crypto’s transition from a speculative asset to a strategic financial tool. The proposal to create a Bitcoin strategic reserve and digital asset stockpile shows the increasing confidence in digital assets and gives the Web3 industry the assurance that not only is crypto here to stay, but it is now impossible to ignore.
What started as an idea to defy the banking system in 2009 has turned into the fastest growing currency exchange market of the 21st century. Government initiatives such as the Bitcoin strategic reserve, a market cap of nearly $3 trillion and the rise of crypto Exchange Traded Funds (ETFs) - publicly traded funds that track the price of a cryptocurrency, allowing investors to gain exposure without needing to hold the underlying asset - are all bringing digital finances into the mainstream.
As outlined in my Web3 trends and predictions for 2025 piece, this growth isn’t something I expect will lose momentum anytime soon. With increased oracle node uptake and a higher adoption of liquid staking and restaking, this year is already poised to welcome crypto into the mainstream with open arms. Trump’s announcement of a strategic reserve elevates this to new heights. As Sandy Carter writes for Forbes:
“This new US Strategic Crypto Reserve ensures digital assets move from the periphery to the core of economic strategy. We are witnessing the dawn of a new financial era—one where blockchain technology and decentralized finance play an integral role in shaping the world’s economic future. All through a Crypto Reserve in the U.S.”
Despite this news, crypto still has more work to do to shed its reputation as a ‘get rich quick’ scheme. The good news is that there have been significant advancements in the Web3 industry over the last few years and we are seeing the early stages of real world utility, like stablecoins and tokenization of Real World Assets (RWAs) taking shape.
For most people, crypto's primary use case, in the short term, will be an investment/ trading asset instead of the real-world use cases, such as cross-border payments and Decentralized Finance (De-Fi), for which it was initially created.
However, this is crucial. The growing participation of retail and institutional investors in crypto plays a key role in enabling blockchain foundations to fund essential research and development. This funding supports advancements in blockchain technology, including DeFi, Smart Contracts, Decentralized Physical Infrastructure (DePin) and the tokenization of RWAs, to name a few. This is what truly gives crypto its value.
Want to continue this conversation? You can reach me on LinkedIn.
Trading and Web3 expert, Mike works with customers not just as a hosting provider but a partner to ensure their infrastructure enables future growth. A golf newbie, he's regularly one shot away from selling his clubs.
