The recent surge in Bitcoin's price, jumping nearly $14,000 over three days, is largely attributed to President Donald Trump's announcement about establishing a U.S. strategic crypto reserve.
This reserve is intended to include not only Bitcoin but also other major cryptos like Ether, XRP, Solana, and Cardano.
Bitcoin's price rose significantly, reaching over $91,000 and even peaking at around $95,000 over the weekend, marking an 18% increase from its lowest point on Friday.
Trump's announcement shifted from a focus on a "Bitcoin stockpile" to a broader "strategic crypto reserve," which includes a variety of digital assets.
The news boosted investor confidence, leading to a positive impact on crypto-linked stocks.
Additional details about the reserve are expected to be revealed at the White House Crypto Summit scheduled for March 7, which could further influence market sentiment.
This development has brought renewed optimism to the crypto market, which had been experiencing a downturn prior to the announcement.
The announcement was seen as a sign of regulatory clarity and institutional involvement, boosting investor confidence and driving bullish sentiment.
The move is seen as part of a broader pro-crypto policy shift by the Trump administration, reinforcing the U.S.'s position in the global race for digital asset leadership.
However, despite the positive reaction, analysts caution that the rally may be temporary due to the lengthy approval process required for establishing a U.S. crypto reserve, which would need Congressional approval.
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