Bitcoin Recovers as Trump Unveils Strategic Reserve Details
March 3 (Reuters) – Bitcoin jumped by a fifth on Monday, recovering from last week’s lows, after President Donald Trump announced that select cryptocurrencies would be included in a new U.S. strategic reserve.
Official Bitcoin Cryptocurrency Selection Announced
In a Truth Social post, Trump confirmed that his executive order from January would establish a reserve containing Bitcoin, Ether, XRP, Solana, and Cardano—names that had not been previously disclosed.
“Bitcoin and Ether will serve as the foundation of this reserve,” he wrote on Sunday.
Bitcoin and Altcoins Rally on the News
Following the announcement, Bitcoin surged by more than 20% from its November lows, reversing a downward trend that had persisted since mid-January due to concerns over Trump’s lack of regulatory action. The leading cryptocurrency was last priced at $94,154, up from $78,273 on Friday.
Ether followed suit with a 20% weekend increase, reaching $2,482, while XRP gained 38%, Solana rose 20%, and Cardano skyrocketed 78%.
Analysts Predict a Shift in Market Sentiment
Chris Weston, head of research at Pepperstone, described the news as a significant positive development for the crypto sector, which had been struggling for momentum.
With Trump hosting the White House Crypto Summit on Friday, the rally could extend further, though external market conditions may dampen enthusiasm.
Bitcoin’s February Slump and Lingering Uncertainty
Bitcoin had fallen over 17% in February, recording its worst monthly decline since June 2022, and had shed more than a third of its value since peaking at $105,000 in early January.
Funding Concerns Could Affect Long-Term Market Stability
While the announcement has driven prices higher, IG market analyst Tony Sycamore warned that questions remain over the reserve’s funding, with possibilities including taxpayer money or seized crypto assets.
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