Bitcoin surged over the weekend after President Donald Trump announced the creation of a US strategic crypto reserve and gave a glimpse into the details of the initiative that cryptocurrency industry supporters have been eagerly awaiting.
Bitcoin is currently trading above $93,000, up 19% from Friday’s low of $78,226.23, according to Coin Metrics. Ether has also gained 13% over the same period, now hovering around $2,300.
Crypto-related stocks also surged in pre-market trading, with Coinbase up 9%, Robinhood up 7%, and MicroStrategy up 12%.
Over the weekend, Trump announced the creation of a US strategic crypto reserve from his previously touted “Bitcoin stash.” The reserve will include not only Bitcoin, but also Ether, XRP, Solana’s SOL token, and Cardano’s ADA.
Following the announcement, Bitcoin’s price surged to as high as $95,000, while other altcoins posted double-digit gains.
The announcement was welcomed by investors who had previously been concerned about the sideways movement in the crypto market. Last week, Bitcoin fell below the critical $90,000 level for the first time in three months and at one point, was down 25% from its all-time high in January. The fall raised concerns that the price could plunge further towards $70,000. Meanwhile, other altcoins have seen more significant declines.
Joel Kruger, market strategist at LMAX Group, said that the announcement was the catalyst that investors had been waiting for to get some certainty about crypto-friendly policies from the US administration.
“After a healthy correction in the market throughout February, this paves the way for the next phase of bullishness for crypto assets,” he said.
Investors are now waiting for more details on the crypto reserve plan. White House AI and crypto chief David Sacks hinted on the X platform that there will be “more developments” at the first White House Crypto Summit scheduled for this Friday.
How long crypto prices will stay high depends on the information that will be announced at the event.
