Bitcoin jumps 20% after Trump hints at new strategic reserve

On Monday, Bitcoin jumped over 20% from the previous week’s lows, with several other cryptocurrencies also experiencing significant gains after U.S. President Donald Trump suggested the potential for a new U.S. strategic reserve that would encompass various tokens.

In a post on Truth Social, Trump stated that his executive order from January concerning digital assets would establish a reserve of currencies such as Bitcoin, Ether, XRP, Solana, and Cardano. The names had not been disclosed before. He shared on Sunday that Bitcoin and ether will form the core of this reserve.

The message boosted the largest cryptocurrency in the world by 20% from November’s lows it was trading at on Friday, shifting the sentiment for a token that had been declining since mid-January due to disappointment over Trump not delivering on promises to ease regulations.

It was last reported at approximately $91,605, rising from Friday’s low of $78,273. Ether increased by 20% from Friday’s lows to reach $2,351, which is a 7% decline from Sunday’s closing prices. XRP and Solana increased about 30% from the lowest points on Friday, whereas Cardano surged 60% from the lows of last week.

“Trump just gave the pump that crypto traders have been holding out for,” said Matt Simpson, senior market analyst at City Index.

“Any faith that was lost last week appears to have been restored,” and new highs could be made unless there was another wave of risk-off selling, he said.

Chris Weston, leader of research at Pepperstone, mentioned that the surge may continue through the initial White House Crypto Summit that Trump is organizing on Friday, with the concern that the negativity in other markets might impact sentiment.  Although Wall Street ended Friday on a positive note, the recent decline in major technology leaders like Nvidia (NVDA.O) has shaken confidence in bitcoin, which is perceived by some as a substitute tech indicator.

Bitcoin dropped over 17% in February, marking its largest monthly percentage decline since June 2022 and shedding more than a third of its value since peaking at $105,000 in early January.