Key Insights
- Bitcoin rallies past $93K as Trump’s crypto reserve plan boosts sentiment.
- Polymarket odds for a U.S. Bitcoin reserve in 2025 jump 20%.
- Traders eye $100K as BTC volatility spikes and CME gaps emerge.
Bitcoin price has surged past $93,000, igniting fresh optimism in the crypto market. The rally follows President Donald Trump’s announcement of a strategic U.S. crypto reserve, a move that has sparked bullish sentiment across digital assets.
Amid this, traders and analysts are watching closely to determine whether Bitcoin can sustain its gains or if another pullback is on the horizon.
Trump’s Crypto Reserve Fuels Market Euphoria
President Trump’s revelation regarding a U.S. strategic crypto reserve sent shockwaves across the market, pushing Bitcoin to intraday highs above $95,000 before retracing slightly.
The proposed reserve includes Bitcoin and Ethereum (ETH) at its core, alongside XRP, Solana (SOL), and Cardano (ADA), leading to massive inflows into these assets. Altcoins experienced substantial gains, with some surging as much as 60% in the past 24 hours.
The announcement has fueled speculation of a potential long-term bullish outlook, with some analysts drawing comparisons to the Federal Reserve’s role in stock market interventions. Crypto trader Alex Krüger remarked, “Trump just signaled there is a Trump put on crypto,” implying that his administration may actively support digital assets in turbulent times.
Bitcoin Price Faces Volatility as CME Gaps Emerge
While Bitcoin price rally has renewed investor confidence, technical analysts are flagging potential retracements. Veteran trader Peter Brandt highlighted a new CME futures gap, hinting at possible downside pressure.
He noted, “And suddenly Bitcoin futures have another gap to fill,” raising concerns that BTC could revisit lower price levels before continuing its upward trajectory.
Similarly, analyst Rekt Capital pointed out that Bitcoin has filled two previous CME gaps between $78,000 and $94,000. However, this rally created another gap between $84,650 and $94,000, which could influence BTC’s next move. Analysts suggest that Bitcoin’s ability to hold key support levels will determine whether it maintains its bullish momentum.
Polymarket Odds Surge for U.S. Bitcoin Reserve
The market reaction to Trump’s crypto-friendly stance has extended beyond just price movements. Polymarket, a prediction market platform, recorded a 20% surge in odds that the U.S. will establish a national Bitcoin reserve in 2025. The betting market now assigns a 63% probability to this outcome, reflecting growing confidence in the government’s crypto adoption.
With increasing speculation that institutional adoption could accelerate under Trump’s policies, derivatives markets have responded accordingly. Open interest in BTC call options at the $100,000 strike level has spiked, signaling bullish bets on further upside. Data from Amberdata shows that more than $100 million in new contracts were added in the past 24 hours alone.
Despite the excitement, some market participants remain cautious. Bitcoin critic Peter Schiff compared the current rally to past instances when the market reacted strongly to influential figures’ statements.
Nonetheless, market analysts are closely monitoring BTC’s ability to maintain momentum. If Bitcoin secures a weekly close above $93,500, it could strengthen its position within the re-accumulation zone, setting the stage for a breakout above $100,000.
Rekt Capital emphasized that a decisive close above $104,500 could trigger a strong upward trend, potentially driving Bitcoin price to new all-time highs.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
