Bitcoin experienced a substantial increase, climbing around 20% from its recent lows, while other cryptocurrencies mentioned by President Donald Trump in a recent Truth Social post also experienced a sharp rise.
Market action showed Bitcoin rallied as high as $95K on Sunday after the president’s announcement via social media. Bitcoin cooled at $93K at the time of publication.
Trump suggested that his January executive order on digital assets would create a reserve of currencies in the U.S., including Bitcoin, Ether, XRP, Solana, and Cardano.
The president of the world’s most powerful economy revealed the plan in a Sunday post on his social media platform, Truth Social, stating that a presidential working group had been instructed to move forward with the reserve’s establishment
“The initiative aims to support the crypto industry and strengthen America’s position in the global digital asset market,” he said. “After years of corrupt attacks by the Biden Administration, a US Crypto Reserve will elevate this critical industry, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA,” Trump stated.
This announcement led to a positive change in sentiment for the world’s largest cryptocurrency, which had been losing ground since mid-January due to disappointment over Trump’s inaction in relaxing regulatory policies. Over a fifth of Bitcoin’s value has been taken off the price since it peaked at $109,000 in early January
Trump disclosed plans to create a Crypto strategic reserve in the United States in the last quarter of 2024, indicating his support for the cryptocurrency industry.
He declared, “We’re going to do something great with crypto because we don’t want China or anybody else to embrace it, but others are, and we want to be ahead.”
Bitcoin dropped more than 17 percent last month, marking its largest monthly percentage decline since June 2022.
Optimism that the crypto-friendly president would support a strategic Bitcoin fund and end the Biden administration’s crackdown on the sector has propelled its rally since Trump’s election in November.
However, investors haven’t heard much specific news about that policy thus far, aside from the rush of tech-friendly officials Trump appointed to office.
Technical analysis
Recent market activity shows that Bitcoin could extend the rally to retest its next resistance level at $100,000 if it continues to recover.
The daily chart’s Relative Strength Index (RSI) now stands close to neutral, suggesting improved market sentiment.
The RSI needs to move above its neutral level of 50 for the bullish momentum to continue. However, if Bitcoin continues to fall and closes below the $90,000 support level, it may retest its $85,000 daily support.
President Trump’s position on cryptocurrencies has changed over time. He was initially dubious, but in keeping with his pledge to make America a center for cryptocurrency innovation, he has lately taken a more encouraging stance.
This commitment is demonstrated by the issuance of Executive Order 14178, which instructs federal agencies to create frameworks that facilitate the integration and regulation of digital assets.
America’s Crypto Czar confirms Trump’s strategy
White House AI and crypto czar David Sacks has endorsed President Donald Trump’s declaration of an American strategic reserve for cryptocurrency.
“President Trump has announced a Crypto Strategic Reserve consisting of bitcoin and other top cryptocurrencies,” Sacks wrote in a post on the social media site X. President Trump is making the U.S the “World’s Crypto Capital.’
Sacks announced plans for a major industry gathering: “On Friday, March 7, President Trump will host the first White House Crypto Summit.. Prominent CEOs, investors, and founders from the cryptocurrency sector will be among the attendees. I hope to see you all there!”
The summit is anticipated to help the administration and important stakeholders communicate, strengthening America’s prominent position in the global crypto industry
