The cryptocurrency market has been boiling over in recent days following US President Donald Trump’s historic announcement of establishing a national cryptocurrency reserve. This move not only caused the price of Bitcoin and the four other cryptocurrencies mentioned by Mr. Trump to skyrocket again, but also made investors ask: Who is behind this bold plan?

Many times, Mr. Trump has been seen on stage with the shadow of Elon Musk behind him. Musk is a strong supporter of cryptocurrency and a symbol of innovation. These two powerful figures, whose influence transcends national borders, could have a major impact in driving a financial revolution the likes of which the world has never seen.

Elon Musk - the man behind Trump's cryptocurrency strategy?

Although both US President Donald Trump and tech billionaire Elon Musk are now strong supporters of cryptocurrencies, their thinking was initially opposite.

During his first term (2017-2021), Mr. Trump expressed doubts about cryptocurrencies, calling Bitcoin a “scam” and affecting the value of the USD. However, his stance changed significantly during the 2024 election campaign, accepting cryptocurrency donations for his campaign and declaring himself a “crypto-friendly” candidate.

Mr. Trump has promised to boost the industry if elected, including removing restrictive regulations and keeping all Bitcoin held by the US government .

The shift coincided with Trump receiving strong support from Elon Musk, who has spent more than $200 million through a Super PAC to support his re-election.

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Mr. Donald Trump and Elon Musk. Photo: BTA

Meanwhile, Elon Musk has long been no stranger to the cryptocurrency investment world. From tweets that shook the Bitcoin market to electric car company Tesla hoarding billions of dollars in cryptocurrency in 2021, Elon Musk has proven that he is not only an investor but also a pioneer in bringing cryptocurrency to business practice.

The intersection between Elon Musk and Mr. Trump in the cryptocurrency field became more evident after Mr. Trump won the election in November 2024.

Trump appointed Musk as co-head of the “ Department of Government Efficiency ,” an outside government advisory body named after Musk’s favorite cryptocurrency, Dogecoin. This triggered a massive rally in Dogecoin, which more than doubled in value after Trump’s victory, reflecting market expectations that Musk could influence cryptocurrency policy under the Trump administration.

So when Trump announced his plans for a digital currency reserve that includes Bitcoin, Ethereum, and other major coins, many people couldn’t help but think of Musk’s influence. It’s no coincidence that just a few hours after Trump’s announcement, billionaire Musk also tweeted about Dogecoin.

Promising to change the global financial balance

Strategically, Musk could be an informal adviser to Trump in crafting this plan. During the 2024 campaign, Trump repeatedly mentioned the need for the US to lead in blockchain technology, a view similar to what Elon Musk has said at technology conferences.

If Elon Musk is indeed involved in shaping the cryptocurrency reserve, his role will not only be to advise but also to act as a bridge between the Trump administration and the technology-cryptocurrency community.

Another evidence of Elon Musk’s influence is the way Trump referred to Bitcoin as “digital gold” in his speech. The term is reminiscent of Elon Musk’s comparisons of Bitcoin to gold, demonstrating its scarcity and intrinsic value.

If Elon Musk is really behind this idea, he could be pushing a long-term strategy: turning cryptocurrency into a national reserve asset not just for the US, but also a global standard. With his experience running Tesla and SpaceX, Elon Musk understands how to use technology to disrupt traditional industries. This time, finance could be the next target.

By adding digital currency to the US national reserve, Mr Trump – with the support of Elon Musk – could make the US the centre of both worlds: traditional finance and decentralized finance.

With hundreds of thousands of Bitcoins in stock, the US could push major companies like Tesla to accept cryptocurrencies in international transactions. This would not only increase the value of cryptocurrencies but also create a new financial ecosystem where the USD and Bitcoin coexist as powerful instruments.

With Elon Musk’s influence in the tech industry, companies like SpaceX and xAI could pioneer the development of blockchain infrastructure that supports the US reserve, thereby setting a global standard. If successful, this alliance could weaken the position of rival financial systems like China’s e-CNY digital currency, forcing other countries to follow the US model.

Still, there are plenty of risks. The volatility of cryptocurrencies could shake confidence in the U.S. reserve if Bitcoin prices plunge. Additionally, geopolitical rivals like China and Russia could accelerate plans to develop their own national digital currencies, leading to a new financial war.

Trump 'ignites' cryptocurrency fever, historic breakthrough or risky gamble? The cryptocurrency market exploded after US President Donald Trump announced plans to establish a national digital currency reserve, marking a potential turning point in the world's financial history. However, the road has not been smooth.