Bitcoin soars past $91K amid Trump’s crypto reserve plan
3 Min Read
XRP, Solana, Cardano, Bitcoin, and Ether experience notable surges in value after the announcement.
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An employee watches an electronic signboard displaying the prices of Bitcoin and other cryptocurrencies at the lounge of Bithumb cryptocurrency exchange in Seoul, South Korea, Nov. 21, 2024. (AP)
Bitcoin (BTC) surged past $91,000 on Sunday following US President Donald Trump’s announcement of crypto strategic reserves for the world's largest economy.
In his initial statement, Trump named XRP, Solana (SOL), and Cardano (ADA) as part of the reserve before later confirming that BTC and Ether (ETH) would also be included.
XRP soared 31% in the last 24 hours to trade around $2.80, while ADA surpassed $1 and SOL climbed above $160, both gaining more than 20% on Sunday.
Meanwhile, BTC saw a 6% increase over the last 24 hours, breaking past $91,000 after hovering between $80,000 and $84,000. ETH surged nearly 10%, surpassing $2,400. The broader CoinDesk 20 Index (CD20) jumped 17% in the same period as of 6:30 GMT.
Driving the news
The news also boosted crypto-related stocks, including MicroStrategy (MSTR), Coinbase (COIN), Robinhood (HOOD), and bitcoin miners, such as MARA Holdings (MARA), Riot Platforms (RIOT), and CleanSpark (CLSK).
Trump’s move is expected to "bring bullish sentiment back" to the digital asset market, which had been stagnant for a week.
Crypto prices had already begun recovering on Friday after the White House announced that Trump would host a crypto summit on March 7, featuring “prominent founders, CEOs, and investors from the crypto industry.”
Why does it matter?
During his 2024 campaign, Trump, who had previously dismissed crypto as a "scam", vowed to simplify regulations, appoint crypto-friendly figures to oversee the sector, support a stablecoin framework, and create a Bitcoin stockpile. After his election, the industry contributed millions to his inaugural committee.
Although not all of these promises have been realized, Trump’s administration policies and the upcoming summit represent a stark contrast to the Biden administration's tougher regulatory stance following the collapse of the FTX digital-asset exchange and other scandals. Trump has also ventured into the cryptocurrency business, launching a memecoin shortly before his return to office and backing a project called World Liberty Financial, involving his sons.
"The administration is committed to providing a clear regulatory framework, enabling innovation, and protecting economic liberty," the White House further stated.
Read more: Bitcoin falls below $90,000, hits lowest level since mid-November
