Bitcoin Surges Following Trump’s Announcement
March 3 (Reuters) – Bitcoin experienced a notable surge on Monday, climbing 20% from last week’s lows. The rise followed an announcement from U.S. President Donald Trump, who revealed that multiple cryptocurrencies would be included in a newly established U.S. strategic reserve. This news also triggered strong rallies among other digital assets.
Trump’s Strategic Reserve Plan
Trump took to Truth Social to explain that his executive order from January was setting up a national reserve comprising Bitcoin, Ether, XRP, Solana, and Cardano. The names of these digital assets had not been previously disclosed.
On Sunday, Trump highlighted that Bitcoin and Ether would be the central components of this reserve.
Bitcoin and Altcoin Prices See Significant Gains
The announcement led to Bitcoin gaining over 20% from its Friday price, reversing recent losses driven by regulatory uncertainty. The cryptocurrency was last trading at around $94,154, up from $78,273.
Ether also climbed by 20%, reaching $2,482. Other major cryptocurrencies reacted positively, with XRP increasing by 38%, Solana rising 20%, and Cardano seeing a dramatic 78% surge.
Market Experts Weigh In on the Impact
Chris Weston, head of research at Australian brokerage Pepperstone, described Trump’s statement as a pivotal moment for the struggling crypto market. He noted that the announcement served as a much-needed catalyst, helping to shift market sentiment away from bearish trends.
Potential for Further Rally and Market Risks
According to Weston, the market’s momentum could continue leading up to the upcoming White House Crypto Summit on Friday. However, he cautioned that broader economic factors might still influence investor confidence.
Bitcoin ’s Recent Struggles and Investor Hopes
Bitcoin suffered a 17% drop in February, marking its worst monthly decline since June 2022. The digital asset has lost over a third of its value since reaching a peak of $105,000 in early January.
Optimism surrounding Trump’s election in November initially fueled hopes that his administration would favor cryptocurrency, possibly backing a government-supported Bitcoin fund and easing regulations. However, apart from appointing crypto-friendly officials, little concrete action has been taken.
Concerns Over Reserve Funding
While the announcement has driven up prices, analysts have raised concerns about how the reserve will be funded. Tony Sycamore, a market analyst at IG, speculated that the funds could come from taxpayer money or be sourced from cryptocurrencies seized during law enforcement operations.
relevant news: HERE
+ There are no comments
Add yours