In a recent update from SINGAPORE (Reuters), Bitcoin saw a remarkable increase of one-fifth from its lows last week on Monday. Furthermore, several other cryptocurrencies, which U.S. President Donald Trump stated would be integrated into a new U.S. strategic reserve, also experienced a significant surge in prices. President Trump shared on Truth Social that his January executive order regarding digital assets would establish a reserve of currencies including bitcoin, ether, XRP, solana, and cardano, which were not previously disclosed. Trump emphasized that both bitcoin and ether would play a central role in this reserve, as he communicated in a post on Sunday.
This announcement caused the world’s largest cryptocurrency to spike by over 20% from the lows it hit in November, reversing the bearish sentiment that has been prevalent since mid-January due to disappointment stemming from Trump’s failure to implement promised regulatory easing measures. Bitcoin’s value was observed at around $94,154 in its most recent trading session, up significantly from Friday’s figure of $78,273. Ether also witnessed a surge of one-fifth over the weekend, reaching $2,482, while XRP soared by 38%, solana by 20%, and cardano by an impressive 78%.
Chris Weston, head of research at Australian online broker Pepperstone, noted that Trump’s announcement of adding these tokens to the reserve had a positive impact on the crypto market, injecting much-needed optimism during a period marked by a downward trend. Weston anticipates that this rally might extend into the upcoming White House Crypto Summit, set to be hosted by Trump on Friday, although he cautioned that bearish sentiment in other markets could potentially dampen the enthusiasm surrounding cryptocurrencies.
Despite the positive outlook on cryptocurrencies, concerns were raised regarding the source of funding for purchases in the reserve. According to IG market analyst Tony Sycamore, the funding could either originate from U.S. taxpayers or be comprised of cryptocurrencies seized in law enforcement actions. Sycamore highlighted that if the asset pool consists of seized cryptocurrencies, it may not be as bullish as it seems, as it would simply be a transfer of assets between accounts rather than new buying activity entering the market.
This surge in cryptocurrency prices following Trump’s announcement has provided a glimmer of hope for the market, although concrete action is awaited to support the positive momentum generated by this development. Financial analysts and market participants continue to closely monitor the evolving landscape of digital assets in anticipation of further developments.
