Bitcoin experienced a substantial rally on Monday, surging by a fifth from its recent lows. This surge followed a post by former U.S. President Donald Trump on Truth Social, where he outlined his intention to include several cryptocurrencies in a new U.S. strategic reserve. Other cryptocurrencies mentioned by Trump, including Ether, XRP, Solana, and Cardano, also saw sharp increases in value.
Trump’s post, referencing his January executive order on digital assets, revealed that the reserve would hold a variety of currencies, with Bitcoin and Ether at its core. The announcement provided a significant boost to the cryptocurrency market, which had been experiencing a downward trend since mid-January.
Bitcoin was trading around $94,154, a notable increase from Friday’s $78,273. Ether also saw a rise, increasing by a fifth over the weekend to reach $2,482. XRP surged by 38%, Solana by 20%, and Cardano’s ADA experienced a 78% gain.
Chris Weston, head of research at Pepperstone, an Australian online broker, noted, “This announcement has clearly created a positive impact on the crypto scene and is a boost for a market desperately in need of a catalyst to alter the downward bearish trend.”
Analysts suggest that the rally may continue into the first White House Crypto Summit, hosted by Trump on Friday. Despite positive developments, market analysts like Weston suggest there’s a risk of bearish sentiment, given the selloff in other markets, especially concerning large technology companies.
Bitcoin had previously fallen more than 17% in February, marking its most significant monthly decline since June 2022, and lost over a third of its value since peaking at $105,000 in early January. The upward trend following Trump’s election was initially fueled by the expectation that he would endorse a strategic Bitcoin fund and relax regulations on the industry.
Tony Sycamore, an IG market analyst, wrote that while beneficial for the market, the announcement has also raised concerns. He noted that funding for cryptocurrency purchases could come from U.S. taxpayers or from cryptocurrencies seized in law enforcement actions. If the funding derives from the latter, it “isn’t anywhere near as bullish as it simply represents a transfer between accounts rather than new buying entering the market.”
