Bitcoin and other cryptocurrencies experienced a significant rally over the weekend following President Donald Trump's announcement of a U.S. strategic crypto reserve. The reserve will feature a diverse array of digital currencies, including ether, XRP, Solana's SOL token, and Cardano's ADA, alongside bitcoin. This news sent bitcoin soaring to as high as $95,000, marking a substantial leap and boosting investor confidence.
Over the weekend, bitcoin demonstrated remarkable resilience, rising above the $92,000 level. This marks an 18% increase from its Friday low of $78,226.23. The rally came after bitcoin briefly slipped below the crucial $90,000 mark last week for the first time in three months. Smaller coins also benefited from this momentum, experiencing double-digit growth, while ether saw a 13% rise, trading at approximately $2,300.
The announcement triggered a surge in the stock market as well. Coinbase and Robinhood observed notable premarket gains of 9% and 7%, respectively. Meanwhile, shares of MicroStrategy climbed by 12%. Investors are keenly observing developments to gather insights into the future direction of the U.S. strategic crypto reserve plans.
Joel Kruger, market strategist at LMAX Group, shared his optimism about the recent developments.
"The weekend news is exactly the type of catalyst investors have been looking for to feel reassured about follow through from the U.S. administration with respect to its crypto friendly policies," – Joel Kruger, market strategist at LMAX Group.
He anticipates a "healthy correction" that could pave the way for further growth in the crypto market.
Adding intrigue to the unfolding narrative, David Sacks, the White House AI and crypto czar, hinted at additional developments during the first White House Crypto Summit by teasing "more to come."