Bitcoin Surges Following Trump’s Reserve Token Announcement
March 3 (Reuters) – Bitcoin experienced a sharp rise on Monday, increasing by 20% from last week’s lows after U.S. President Donald Trump revealed that several cryptocurrencies would be part of a new U.S. strategic reserve. Other digital assets also saw significant rallies.
Trump’s Executive Order and Reserve Details
Trump announced on Truth Social that his January executive order on digital assets would establish a reserve comprising Bitcoin, Ether, XRP, Solana, and Cardano. This marks the first time these cryptocurrencies have been officially confirmed.
On Sunday, he stated that Bitcoin and Ether would serve as the central assets in this reserve.
Crypto Market Reaction and Price Changes
Bitcoin jumped over 20% from its Friday price, bouncing back from losses triggered by doubts over Trump’s regulatory stance. It was last seen trading at $94,154, up from $78,273.
Ether gained 20% to reach $2,482, while XRP climbed 38%, Solana advanced 20%, and Cardano surged by 78%.
Expert Opinions on Market Trends
Chris Weston, head of research at Pepperstone, described Trump’s statement as a significant boost to the crypto industry, helping to reverse a declining trend.
What Lies Ahead for the Crypto Market?
Weston suggested that the rally could continue leading up to the White House Crypto Summit on Friday. However, he warned that market sentiment might still be affected by external financial pressures.
Bitcoin ’s Struggles and Investor Expectations
Bitcoin fell 17% in February, marking its worst monthly performance since June 2022. It has shed over a third of its value since peaking at $105,000 in early January.
Initially, Trump’s election fueled optimism about potential government-backed crypto initiatives. However, beyond the appointment of pro-crypto officials, no major policy changes have been enacted.
Uncertainty Over Reserve Funding
While the announcement has driven prices upward, concerns remain regarding funding sources. Market analyst Tony Sycamore speculated that the reserve could be financed through taxpayer funds or by utilizing confiscated digital assets.
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