Bitcoin jumps, cardano soars after Trump lists US crypto reserve tokens
Bitcoin (BTC-USD) gained over 6% on Monday, rising as much as 20% from last week's lows, after President Donald Trump revealed plans to include the digital currency in a new US strategic crypto reserve.
Prices of several other cryptocurrencies also rallied in the wake of Trump's posting on Truth Social that the US stockpile would include bitcoin, ether (ETH-USD), XRP (XRP-USD), solana (SOL-USD) and cardano (ADA-USD). The stockpile assets had not previously been announced, News.Az reports, citing Reuters.
Bitcoin and ether will be at the heart of this reserve, Trump said on Sunday.
The post helped flip sentiment on bitcoin, which hit its lowest since November on Friday and has been sliding since mid-January on disappointment Trump has not followed through on pledges to loosen regulation.
The token was last trading around $91,800, up 6.8% from its price 24 hours ago. Ether is up 6% and was last at roughly $2,350, while XRP and solana 15% gained 15%, 11%, respectively. Cardano rocketed over 40% higher.
"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, head of research at Australian online broker Pepperstone, said it was possible the rally will extend into the first White House Crypto Summit that Trump is hosting on Friday, with the risk that the bearishness in other markets could weigh on sentiment.
While Wall Street closed higher on Friday, the recent selloff in large technology bellwethers such as Nvidia (NVDA) has eroded confidence in bitcoin, which some see as an alternative tech proxy.
Bitcoin fell more than 17% in February, clocking its biggest monthly percentage fall since June 2022 and losing more than a third of its price since topping $105,000 in early January.
Its rally since Trump's November election was spurred by optimism that the crypto-friendly president would champion a strategic bitcoin fund and end the previous Joe Biden administration's crackdown on the industry.
But beyond a flurry of appointments of crypto-friendly officials when Trump took office, there has been little concrete news so far around that policy for investors.
"While this announcement has significantly boosted prices, it has also raised concerns," wrote IG market analyst Tony Sycamore.
The funding for cryptocurrency purchases in the reserve could either come from U.S. taxpayers or the cryptocurrencies in the asset will be those seized in law enforcement actions, he said.
"The latter isn't anywhere near as bullish as it simply represents a transfer between accounts rather than new buying entering the market."
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