Bitcoin Soars 20% After Trump Reveals U.S. Crypto Reserve
Bitcoin has seen a dramatic surge, climbing more than 20% from last week’s lows, following an announcement by U.S. President Donald Trump regarding the inclusion of several cryptocurrencies in a new strategic reserve. This unexpected development has sparked a significant rally in the crypto market, with other major digital assets also witnessing substantial gains.
Trump’s Announcement Boosts Crypto Market
Over the weekend, Trump took to his social media platform, Truth Social, to reveal details about his January executive order on digital assets. For the first time, he disclosed that the U.S. strategic reserve would include Bitcoin, Ether, XRP, Solana, and Cardano. This revelation, particularly highlighting Bitcoin and Ether as the central assets of the reserve, triggered an immediate price surge across the crypto market.
Bitcoin, the world’s largest cryptocurrency, saw a sharp rise, reaching approximately $93,057 from Friday’s $78,273, marking a 20% increase. Ether also experienced a notable boost, climbing 10% to $2,450. Meanwhile, XRP surged by 31%, Solana by 15%, and Cardano recorded the most impressive jump, skyrocketing by 69%.
Market Sentiment and Reactions
The announcement came as a major relief to crypto investors and traders, many of whom had been concerned about the recent downward trend in Bitcoin’s price. Since mid-January, Bitcoin had been facing a sustained selloff, partly due to investor disappointment over Trump’s perceived inaction on regulatory reforms. His recent post, however, appears to have reignited optimism.
“Trump just gave the pump that crypto traders have been holding out for,” said Matt Simpson, a senior market analyst at City Index. He added that confidence in the market had been restored and that unless another wave of risk-off sentiment emerged, new all-time highs could soon be achieved.
Chris Weston, head of research at Australian online broker Pepperstone, suggested that the rally could extend further as anticipation builds for the upcoming White House Crypto Summit, scheduled for Friday. However, he cautioned that broader market factors, such as a downturn in large technology stocks, could weigh on sentiment.
Wall Street’s Influence and Recent Bitcoin Struggles
Despite Friday’s higher close on Wall Street, the recent decline in major tech stocks, such as Nvidia, has eroded confidence in Bitcoin. Some investors view Bitcoin as a proxy for technology-related investments, and declines in major tech firms often spill over into the crypto market.
Bitcoin had a particularly rough February, registering a 17% drop—its worst monthly performance since June 2022. The cryptocurrency has lost more than a third of its value since reaching a peak of over $105,000 in early January. While the post-election optimism surrounding Trump’s crypto-friendly stance initially fueled Bitcoin’s rally, the lack of substantial policy changes had tempered enthusiasm.
The crypto market had been awaiting tangible regulatory shifts, and Trump’s announcement was the first major indication that digital assets could play a strategic role in the U.S. financial system. However, analysts are now questioning whether this move will translate into lasting positive momentum or if it is merely a short-term boost.
Skepticism and Concerns Over the Strategic Reserve
While the announcement has been overwhelmingly bullish for crypto prices, some market experts are expressing concerns about the funding and implications of the strategic reserve. IG market analyst Tony Sycamore pointed out that uncertainty remains over how these digital assets will be acquired and managed within the reserve.
“There are two possible funding sources for the strategic reserve,” Sycamore explained. “One scenario is that the U.S. government purchases these cryptocurrencies using taxpayer funds, which would represent a strong bullish catalyst. The alternative scenario is that the assets included in the reserve come from cryptocurrencies seized in law enforcement actions, which would merely be a transfer between government accounts rather than an influx of new buying pressure.”
If the reserve primarily consists of seized assets, it may not have the same bullish effect on market liquidity as some investors anticipate. The lack of clarity on how the reserve will be structured and managed has led to mixed reactions from institutional and retail investors alike.
Looking Ahead: The White House Crypto Summit
With the first-ever White House Crypto Summit set for Friday, traders and analysts are closely watching for further policy announcements that could impact the cryptocurrency market. Some speculate that Trump may provide additional details on regulatory reforms or incentives aimed at boosting institutional investment in digital assets.
For now, the market remains in a state of heightened optimism, with Bitcoin and other major cryptocurrencies benefiting from renewed bullish sentiment. However, the long-term impact of Trump’s strategic reserve initiative will ultimately depend on how the plan is executed and whether it leads to a more favorable regulatory environment for digital assets.
As investors await more clarity, the crypto market remains highly volatile, with both excitement and caution shaping the next phase of Bitcoin’s price movement. Whether the rally sustains its momentum or faces another correction will depend on the details revealed in the coming days.
