Crypto prices soar after Trump proposes a U.S. strategic reserve for cryptocurrencies.
Following Trump’s announcement, the values of bitcoin and other cryptocurrencies have risen significantly. He stated through a social media outlet that this reserve would encompass prominent currencies like bitcoin and ether, as well as various smaller tokens including XRP, solana, and cardano.
On Monday, bitcoin jumped over 20% from its lows last week, with several other cryptocurrencies experiencing significant gains after U.S. President Donald Trump suggested the establishment of a new U.S. strategic reserve, which would include various tokens.
In a message on Truth Social, Trump indicated that his upcoming January executive order on digital assets would result in the creation of a reserve composed of multiple currencies, among which are bitcoin BTC=, ether, XRP, solana, and cardano—names that hadn’t been disclosed before.
He emphasized that bitcoin and ether would be central to this reserve in his post from Sunday.
This remark propelled the world’s top cryptocurrency up by one-fifth compared to its lows from November, reversing the negative sentiment surrounding a token that had been declining since mid-January due to letdowns regarding Trump’s regulatory promises.
Currently, bitcoin is valued at approximately $91,605, a rise from last Friday’s low of $78,273.
Ether ETH= saw a similar increase of 20% from Friday’s lows, reaching $2,351, though this is a 7% drop from Sunday’s closing rates.
XRP XRP= and solana SOL=CCCL experienced an approximate 30% increase from their lowest Friday values, while cardano ADA=CCCL surged by 60% compared to last week’s lows.
“Trump has finally provided the boost that crypto traders have been eagerly anticipating,” commented Matt Simpson, senior market analyst at City Index.
“The lost confidence from last week seems to have been restored,” he added, stating that new highs could be possible unless another wave of risk-off selling occurs.
Chris Weston, head of research at Pepperstone, speculated that the rally might continue into the first White House Crypto Summit Trump is hosting on Friday, though he warned that bearish trends in other markets could dampen overall sentiment.
Although Wall Street experienced a positive close on Friday, recent sell-offs in major tech companies, like Nvidia NVDA.O, have diminished trust in bitcoin, which is often viewed as a proxy for tech investments.
In February, bitcoin experienced a more than 17% decline, marking its largest monthly percentage drop since June 2022, and has lost over a third of its value since peaking at $105,000 in early January.
The recent surge in bitcoin since Trump’s election was driven by hopes that the crypto-friendly president would advocate for a strategic bitcoin fund and roll back the previous Biden administration’s strict policies on the industry.
“Ironically, a currency that was meant to be detached from government influence and decentralized is now hinged on the U.S. government’s actions for its prosperity,” noted Kathleen Brooks, research director at XTB, affirming that the $100,000 mark is an “obvious target” for bitcoin.
Despite the numerous appointments of cryptocurrency-friendly figures during Trump’s presidency, solid news regarding that policy remains scarce for investors.
“While this announcement has significantly elevated prices, it has also sparked some concerns,” stated IG market analyst Tony Sycamore.
He mentioned that the fund for cryptocurrency acquisitions in the reserve could either stem from U.S. taxpayers or comprise cryptocurrencies seized through law enforcement actions.
“The latter scenario is far less optimistic, as it merely signifies a transfer between accounts rather than fresh investments entering the market.”
Reporting by Vidya Ranganathan and Kevin Buckland; additional reporting by Yadarisa Shabong and Lisa Mattackal in Bengaluru; Editing by Amanda Cooper and Bernadette Baum
