Bitcoin Surges After Trump Announces Cryptocurrency Reserve
March 3 (Reuters) – Bitcoin rallied 20% on Monday, bouncing back from last week’s lows, after U.S. President Donald Trump revealed that several cryptocurrencies would be included in a newly established U.S. strategic reserve.
Trump Discloses Which Cryptos Will Be Part of the Reserve
Trump announced via Truth Social that his January executive order would introduce a reserve featuring Bitcoin, Ether, XRP, Solana, and Cardano—marking the first public mention of these specific tokens.
“Bitcoin and Ether will be the primary assets in this reserve,” Trump stated on Sunday.
Crypto Market Reacts with Strong Gains
The news triggered a more than 20% surge in Bitcoin’s value from its November lows, reversing a bearish trend that had taken hold since mid-January amid concerns over Trump’s regulatory stance. Bitcoin was last trading at $94,154, a sharp increase from $78,273 on Friday.
Ether followed with a 20% weekend rise to $2,482, while XRP gained 38%, Solana increased 20%, and Cardano soared 78%.
Experts Call This a Bullish Catalyst for the Market
Chris Weston, head of research at Pepperstone, described Trump’s announcement as a much-needed bullish catalyst for the struggling crypto market.
The upcoming White House Crypto Summit on Friday may further influence prices, though broader economic uncertainties remain a factor.
Bitcoin ’s Recent Decline and Ongoing Volatility
Bitcoin fell by over 17% in February, marking its worst monthly decline since June 2022, and has lost more than a third of its value since peaking at $105,000 in early January.
Debates Over Funding Source of the Reserve
While Trump’s presidency initially raised hopes for crypto-friendly policies, his administration has yet to introduce major legislative changes apart from appointing officials with pro-crypto views.
Despite the market surge, IG market analyst Tony Sycamore highlighted concerns over the funding source for the reserve, with potential options including taxpayer contributions or cryptocurrencies confiscated in legal cases.
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