Bitcoin Soars 20% as Trump Discloses Crypto Reserve Plan
March 3 (Reuters) – Bitcoin climbed 20% on Monday from last week’s lows after U.S. President Donald Trump revealed details about a new U.S. strategic reserve that would include several major cryptocurrencies. Other digital assets mentioned in his announcement also saw significant gains.
Trump’s Statement on Crypto Reserve
Trump posted on Truth Social that his executive order from January would establish a digital asset reserve containing Bitcoin, Ether, XRP, Solana, and Cardano. This was the first official disclosure of the included cryptocurrencies.
On Sunday, he further stated that Bitcoin and Ether would play a central role in this reserve.
Market Response and Price Movements
Bitcoin rose by over 20% from its Friday price, reversing previous declines driven by uncertainty over Trump’s regulatory stance. By Monday, it was trading at approximately $94,154, up from $78,273.
Ether surged 20% to reach $2,482, while XRP climbed 38%, Solana gained 20%, and Cardano experienced a substantial 78% increase.
Expert Reactions to the Announcement
Chris Weston, head of research at Australian brokerage Pepperstone, described the announcement as a major boost for the crypto market, bringing relief to investors facing continued bearish sentiment.
Possible Continued Gains and Market Uncertainty
Weston indicated that the rally might extend into Trump’s upcoming White House Crypto Summit on Friday. However, external market conditions could still influence investor confidence.
Bitcoin’s Struggles in Recent Months
Bitcoin recorded a 17% decline in February, marking its steepest monthly drop since June 2022. It has lost more than a third of its value since peaking at $105,000 in early January.
Hopes were high that Trump’s presidency would lead to crypto-friendly policies, including the creation of a strategic Bitcoin fund. However, aside from appointing pro-crypto officials, no significant steps have been taken.
Concerns Over How the Reserve Will Be Funded
While the announcement has fueled price increases, analysts have questioned the funding mechanism for the reserve. Tony Sycamore from IG proposed that the funds could either come from taxpayers or from cryptocurrencies seized by the government.
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