Trump card: Bitcoin booms as Donnie deals in digital dollars
Bitcoin nosedived back into the spotlight with a jaw-dropping surge of over 20% yesterday, accompanied by a thrilling rally in various cryptocurrencies.
The electrifying leap followed US President Donald Trump’s bombshell announcement about a proposed strategic US reserve replete with an enticing collection of digital tokens.
In a candid post on Truth Social, Trump unveiled his plan for a January executive order on digital assets, which would shape a new reserve stacked with currencies like bitcoin, Ether, XRP, Solana, and Cardano.
This was the inaugural public mention of these particular tokens, and he declared bitcoin and Ether would take the starring role in this digital ensemble.
Sparked by Trump’s Sunday, March 2 revelation, bitcoin, the king of cryptocurrencies worldwide, dramatically rebounded from its November lows. The bounce reversed the mid-January slump triggered by unmet regulatory promises.
Trading at a robust US$91,605, bitcoin dramatically bounced back from a pale US$78,273 on Friday. Not to be outdone, Ether rocketed 20% from its Friday dip to US$2,351, even factoring in a 7% slide from Sunday’s close.
XRP and Solana weren’t left behind, each shooting up around 30% from Friday’s depths, while Cardano went on a meteoric 60% ascent from the previous week’s lows.
Market analyst Matt Simpson from City Index remarked that Trump’s revelation was the much-needed shot in the arm crypto aficionados had longed for, hinting at fresh peaks unless another selling wave dampened spirits.
Pepperstone’s research chief, Chris Weston, sees room for this rally to gallop on into the imminent White House Crypto Summit, hosted by none other than Trump himself on Friday. However, he warned of potential hiccups, as bearish market currents elsewhere could cast a shadow over the exuberance.
Bitcoin’s bumpy road saw a painful 17% tumble in February, the steepest monthly fall since June 2022, wiping away more than a third of its glorious peak value at US$105,000 in early January.
The euphoria post-Trump’s November election was fuelled by hopes his crypto-friendly mindset might bolster a strategic bitcoin fund and undo the previous administration’s regulatory chains.
XTB’s research director, Kathleen Brooks, couldn’t resist highlighting the twist of fate: a currency crafted for independence suddenly tethered to US political manoeuvring.
US taxpayers
Brooks pegged the US$100,000 target as an “obvious milestone” for bitcoin. Despite Trump’s instalment of pro-crypto officials, concrete policies remained elusive for eager investors.
Tony Sycamore, an IG market analyst, acknowledged that while Trump’s declaration catapulted prices, it also unwrapped fresh worries.
The question mark looms large: will US taxpayers foot the bill for this crypto reserve, or will it be a matter of shifting seized cryptocurrencies around?
Sycamore cautioned that the latter would deflate the bullish buzz, signalling a mere transfer of crypto-coins rather than a fresh influx into the market.
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