Bitcoin Jumps 20% as Trump Reveals Digital Asset Reserve

Image Credit: Reuters

Bitcoin surged by 20% from last week's lows on Monday, alongside strong rallies in other cryptocurrencies, following U.S. President Donald Trump's announcement of a new strategic reserve for digital assets. Trump revealed on Truth Social that his January executive order would establish a stockpile that includes bitcoin, ether, XRP, solana, and cardano—names not previously disclosed. Bitcoin and ether are expected to be central to this reserve.

The announcement helped lift Bitcoin from its recent lows, trading around $94,154, up from $78,273 on Friday. Ether also saw a significant increase, rising by 20% over the weekend to $2,482, while XRP jumped 38%, solana rose 20%, and cardano surged 78%.

Chris Weston, head of research at Pepperstone, called the move a "positive shock" to the crypto market, which had been in a bearish trend, craving a catalyst to turn sentiment. Investors are hopeful the rally could extend into the first White House Crypto Summit Trump is hosting on Friday. However, broader market bearishness, especially in tech stocks like Nvidia, could temper sentiment for Bitcoin, seen by some as a proxy for tech.

Bitcoin had fallen more than 17% in February, marking its biggest monthly drop since June 2022 and losing over a third of its value since hitting $105,000 in January. The earlier rally, spurred by hopes that Trump would create a strategic bitcoin fund and reduce regulation, had cooled due to a lack of concrete action.

While the announcement has reignited optimism, concerns remain. IG market analyst Tony Sycamore pointed out that the funding for the reserve could come from U.S. taxpayers or seized assets, with the latter offering less market benefit since it only shifts holdings rather than introducing new investments.

Paraphrasing text from "Reuters" all rights reserved by the original author