Bitcoin positively reacted to US President Donald Trump’s idea of a cryptocurrency reserve! Prices skyrocketed, but the euphoria faded, and the flagship asset dipped again.
According to Bloomberg, Bitcoin jumped 9% after Trump mentioned creating a strategic reserve of digital assets in the United States. On March 3, BTC exceeded $94,000. Later, the leading crypto corrected, and by March 5, it was trading at $88,560. However, many experts see this dip as temporary.
On his Truth Social platform, Trump announced that, under his January executive order on digital currencies, a working group was tasked with continuing work on a strategic cryptocurrency reserve. Early estimates suggest it could include not just Bitcoin and Ethereum but also Solana, Ripple, and Cardano. According to Andrew Tu, head of sales at crypto market maker Efficient Frontier, the inclusion of the last two was unexpected.
On March 2, Bitcoin and Ethereum surged, lifting the entire crypto market. But later, Bitcoin tumbled below $80,000.
For reference, Bitcoin started a strong rally in early November 2024, gaining over 30% in just a month and breaking past $100,000. On Trump’s inauguration day, the flagship crypto hit $109,000. However, it later became clear that Trump’s order only called for an assessment of the potential creation and maintenance of a national digital asset reserve, not an actual Bitcoin reserve. That reality check sent Bitcoin into a pessimistic spiral, leading to a decline.
