Bitcoin Surges 20% Following Inclusion in U.S. Strategic Reserve
On Monday, Bitcoin’s value experienced a significant surge, increasing by over 20% from its previous lows. This rise follows U.S. President Donald Trump’s announcement that Bitcoin and other cryptocurrencies will be included in a new U.S. strategic reserve.
In a Sunday Truth Social post, President Trump stated that his January executive order on digital assets would establish a stockpile comprising Bitcoin, Ether, XRP, Solana, and Cardano. This marks the first public disclosure of the specific cryptocurrencies to be included. Trump emphasized that Bitcoin and Ether would be central to this reserve.
The announcement led to a notable market reaction. Bitcoin rose from $78,273 on Friday to approximately $94,154 on Monday. Ether increased by 20% over the weekend, reaching $2,482. XRP surged by 38%. Solana climbed to 20% and Cardano jumped 78%.
Chris Weston, head of research at Australian online broker Pepperstone, commented that Trump’s disclosure provided a positive shock to the crypto market, offering a much-needed catalyst to counter recent bearish trends.
However, some analysts urge caution. Tony Sycamore, a market analyst at IG, noted that while the announcement has boosted prices, concerns remain about the funding sources for cryptocurrency purchases. The bullish impact might be limited if the reserve is funded through seized cryptocurrencies rather than new market purchases.
This development has reinvigorated a market experiencing declines due to unmet expectations regarding regulatory changes. The upcoming White House Crypto Summit, scheduled for Friday, is anticipated to influence market sentiment further.
