US's crypto reserve plan a booster, but Indian investors must be cautious

Lack of regularity clarity in India and high volatility mean investors should take only limited exposure

United States President Donald Trump on March 2, 2025, announced the establishment of a US Crypto Strategic Reserve, comprising Bitcoin, Ethereum, XRP, Solana, and Cardano. This move is being seen as a major step towards legitimising cryptocurrencies, which could also trigger a bull run in this asset class.

 

Impact: Inflows, price surge

 

The announcement led to a surge in trading volumes, with the crypto market seeing inflows of nearly Rs 300 billion overnight. Bitcoin surpassed Rs 94,000, while Ethereum climbed above Rs 2,500. “Such legitimisation of cryptos by the US government could drive mainstream adoption and increase institutional participation,” says