Bitcoin Rallies 20% After Trump Confirms Crypto Reserve
March 3 (Reuters) – Bitcoin rebounded on Monday, rising by 20% from last week’s lows following a key announcement by U.S. President Donald Trump. The revelation that a new U.S. strategic reserve would include major cryptocurrencies also triggered strong market reactions.
Details of Trump’s Executive Order
Trump stated on Truth Social that his executive order from January would establish a national reserve featuring Bitcoin, Ether, XRP, Solana, and Cardano. This was the first official confirmation of the selected digital assets.
On Sunday, Trump emphasized that Bitcoin and Ether would be central components of this reserve.
Market Surge Led by Bitcoin and Altcoins
Following the announcement, Bitcoin surged over 20% from its Friday price, reversing losses tied to regulatory concerns. The cryptocurrency was trading around $94,154, up from $78,273.
Ether also gained 20% over the weekend, reaching $2,482. XRP saw a 38% increase, while Solana rose 20% and Cardano experienced an impressive 78% surge.
Analysts Weigh In on the Impact
Chris Weston, head of research at Pepperstone, described Trump’s post as a game-changing moment for the crypto market, providing much-needed relief from its bearish trend.
Potential for Continued Growth and Risks
Weston noted that the rally could extend into the upcoming White House Crypto Summit on Friday. However, he also warned that negative trends in broader financial markets could still affect sentiment.
Bitcoin’s Recent Performance and Future Expectations
Bitcoin saw a 17% decline in February, marking its worst monthly drop since June 2022. The cryptocurrency has lost over a third of its value since reaching $105,000 in early January.
Trump’s election had initially fueled hopes for favorable crypto policies, including a possible government-backed Bitcoin fund. However, beyond appointing pro-crypto officials, little concrete action has been taken.
Funding Questions Surrounding the Reserve
Despite the market boost, analysts have raised concerns about how the reserve will be funded. Tony Sycamore from IG suggested that the government might either use taxpayer money or repurpose digital assets seized in law enforcement operations.
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