Crypto Market Skyrockets: Trump Confirms Bitcoin & Ether for US Crypto Reserve
After US President Donald Trump announced a possible strategic crypto reserve, cryptocurrency prices jumped, but analysts warned that the rise would not last long. Trump stated on March 2 that his Working Group on Digital Assets has received instructions to add three cryptocurrencies to the US crypto reserve: XRP, Solana, and Cardano’s ADA.
Trump stated in another post on Truth Social that Bitcoin and Ether would undoubtedly also be part of the reserve. Following a 7.7% intraday rise, Bitcoin broke through the psychological $95,000 barrier, and the revelation set off a market-wide bounce, with the global cryptocurrency market capitalization increasing by almost 7% to $3.04 trillion.
Crypto Volatility Ahead? Experts Question Trump’s Strategic Reserve Plan!
However, Aurelie Barthere, chief research analyst at blockchain analytics company Nansen, said the surge might only last a short while because of the drawn-out approval process needed to create a US cryptocurrency reserve.
I think constituting a reserve by buying new tokens is a complex process that will need Congress’s vote, so it will take time. I would be a bit wary of the sustainability of today’s move.
Barthere
Following Trump’s announcement of their inclusion in the US strategic reserve, ADA, SOL, and XRP have outperformed the market. According to Nicolai Sondergaard, a research analyst at Nansen, the cryptocurrency market’s upward potential may be constrained and could result in considerable volatility in the near future.
As Aurelie mentions it likely will not be that easy and I expect volatility in these tokens today especially (already seen in ADA nearly touching $1.17 and now sitting at $0.94). Regardless of how long these gains will last, it is momentarily positive for the market, but the question for the future will be if any of it will come to fruition. If not, it will likely be a negative news point for crypto,
Sondergaard
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