In a dramatic weekend surge, Bitcoin soared nearly $17,000, reaching a peak of $95,152 before falling back to $87,362 in Monday’s intraday trading. This almost 22% jump from Friday’s low of $78,226 came on the heels of President Donald Trump’s announcement of a U.S. strategic crypto reserve, breathing new life into the cryptocurrency market.
The president’s pivot from a “bitcoin stockpile” to a more diverse crypto reserve sparked enthusiasm among investors. Trump revealed plans to include Ethereum, XRP, Solana’s SOL token, and Cardano’s ADA alongside Bitcoin in the reserve, triggering significant gains across the board. Ethereum climbed 13% to around $2,300, while smaller altcoins experienced double-digit growth.
This announcement couldn’t have come at a better time for the crypto market, which had been grappling with a challenging February. Bitcoin had recently dipped below the critical $90,000 threshold for the first time in three months, stoking fears of a potential slide towards $70,000.
The market’s positive reaction extended beyond cryptocurrencies. Crypto-related stocks also saw substantial gains, with Coinbase (NASDAQ: COIN) and Robinhood (NASDAQ: HOOD) jumping 6% and 7% respectively in premarket trading. MicroStrategy (NASDAQ: MSTR), known for its significant Bitcoin holdings, saw its shares climb 13%.
Joel Kruger, market strategist at LMAX Group, told CNBC, “The weekend news is exactly the type of catalyst investors have been looking for to feel reassured about follow through from the U.S. administration with respect to its crypto friendly policies. Now that we’ve already seen a healthy correction in February, this sets the stage for the start to the next leg higher for crypto assets.”
However, the specifics of Trump’s plan remain unclear, including the scale of government purchases and funding sources. This uncertainty leaves room for potential market volatility if expectations aren’t met. Investors are now eagerly awaiting the first White House Crypto Summit, scheduled for Friday. David Sacks, the White House AI and crypto czar, hinted at “more to come” during this event, potentially providing crucial details about the reserve plans.
Trump’s crypto-friendly stance marks a significant shift from the previous administration’s approach. His campaign promises and recent executive actions have largely been viewed positively by the crypto industry, which had faced increased scrutiny under President Biden.
While the market response has been overwhelmingly positive, some Bitcoin maximalists expressed disappointment that the January executive order didn’t explicitly mention Bitcoin, referring instead to a “national digital asset stockpile”.
As the crypto market digests this news, all eyes are on the upcoming White House Crypto Summit. The event could provide critical insights into the administration’s long-term vision for cryptocurrencies and potentially set the tone for the market’s next moves.
