Key Insights:
- Trump’s latest tweet confirms upcoming U.S crypto reserve.
- ETH and other altcoins will be part of the reserve
- Bitcoin surges back above $90k.
Excitement is back in the cryptocurrency market as U.S President Donald Trump confirmed that a U.S Crypto reserve is in the pipeline. The market had already demonstrated a price-positive reaction briefly after Trump’s tweet.
Another highlight of The U.S president’s latest tweet is that he described Blockchain and cryptocurrencies as a ‘critical industry’.
He also hinted at the possibility that the current U.S administration may push for the adoption of cryptocurrencies and blockchain technology as defenses against corruption.
Trump’s Tweet Triggers a Massive Wave of Liquidity Inflows
The crypto market has responded swiftly to Trump’s tweet. Bitcoin price action registered a sharp bounce from its $85,029 low in the last 24 hours, to a $92,766 press time price tag. BTC has so far bounced back by roughly 18% in the last 3 days.
Ethereum also found favor with the bulls after the announcement. It was up 11% in the last 24 hours, with most of those gains occurring after Donald Trump tweeted about the U.S crypto reserve. Note that ETH was previously in oversold territory, with barely any demand prior to the tweet.
Cardano’s ADA had the biggest reaction to the news. It was up by an impressive 77% from its lowest to highest price point during the day. It even managed to reclaim the highly coveted $1 price tag and pushed as high as $1.14 at the time of observation.
Solana’s native coin SOL also pulled off a 20% plus upside, allowing it to rally as high as $179.85 after the announcement. SOL was oversold at the tail end of last week, with price dipping as low as $125.55.
XRP bulls also responded positively with price rallying by over 33% in the last 24 hours. XRP exchanged hands at $2.95 at press time, and was up by over 50% from its lowest price point in the last 7 days.
Why Trump’s Tweet Could Set the Pace for the Next Bull Run?
Trump’s confirmation that a U.S crypto reserve with multiple coins is coming could be one of the most understated events of the crypto market.
Chances are that investors will likely boost exposure in the highlighted cryptocurrencies and hence their price reactions.
The revelation may also inspire the approval and launch of ETFs around the highlighted cryptocurrencies in the coming months.
This will thus pave the way for robust institutional and whale activity around the same cryptocurrencies.
The next wave of the bull market could therefore turn out to be very interesting. This announcement may also set the pace for a bullish outcome in March and potentially more recovery after the downside experienced in the last few months.
