Highlights
- Bitcoin dipped to $78,200 but rebounded 21% to $95,000 after Trump’s U.S. Crypto Reserve announcement.
- Ethereum rose 23%, while Cardano surged 105%, reclaiming the $1 mark.
- Solana’s SOL climbed 43%, and XRP increased by over 51% following the news.
In late February 2025, the Bitcoin price dipped below the crucial $90,000 support level, hitting a low of $78,200. This marked a significant 28% decline from its peak of $109,000.
However, on February 28th, the market witnessed a liquidity grab, resulting in a strong wick with a small body on the candle, indicating robust buying activity from bulls. Following this liquidity grab, a powerful momentum candle formed right after President Donald Trump announced his plans of a Crypto Strategic Reserve.
The news led to a surge in market excitement as the president announced plans for a U.S. Crypto Reserve. This announcement triggered a positive price reaction across the crypto landscape after his tweet.
As a result, from the liquidity grab candle, Bitcoin experienced a remarkable 21% rise. Where BTC climbed to $95,000 after breaking through the $90,000 resistance. This rally brought relief to many experts and investors, signaling a positive shift for the entire market.
However, the Bitcoin price has since paused near the 50-day EMA band, currently trading at $92,518, reflecting a 2% decline for the day.
Another noteworthy aspect of the President’s recent tweet was his characterization of blockchain and cryptocurrencies as critical industries.
He hinted that the current U.S. administration might advocate for the adoption of these technologies as a means to combat corruption, further fueling optimism in the crypto community. Keep reading to know more.
How Other Major Altcoins Reacted Alongside Bitcoin to the US Crypto Reserve News?
The crypto market reacted swiftly to Donald Trump’s tweet, with Bitcoin experiencing a sharp bounce over the past three days.
This surge in the Bitcoin price has also positively impacted other altcoins, highlighting Bitcoin’s significant influence on the market. Further fluctuations in the Bitcoin price could either propel or hinder the performance of these altcoins.
Ethereum, for instance, saw a notable uptick, rising 23% in just three days, largely following Donald Trump’s announcement about the U.S. Crypto Reserve. Prior to the tweet, ETH was in oversold territory, struggling with low demand, making this rally even more significant.
Cardano’s ADA had one of the most remarkable responses to the news, skyrocketing by an impressive 105% in the same timeframe. This surge allowed ADA to reclaim the coveted $1 mark, reaching as high as $1.19 during the observation period.
Similarly, Solana’s native token, SOL, rallied 43%, climbing to $180.61 after the announcement. SOL had been oversold at the end of the previous week, with its price dipping to as low as $125.36.
XRP also saw bullish activity, with its price increasing by over 51% during this period. However, alongside Bitcoin and other altcoins, some profit bookings have been observed.
If prices can maintain their gains, a new wave of bullish momentum could further elevate the market.
Trump’s Announcement Positive Injection for the Sector?
Donald Trump’s announcement of a forthcoming U.S. crypto reserve featuring multiple coins could be one of the most significant yet understated events in the crypto market.
Investors are likely to increase their exposure to the highlighted cryptocurrencies, which could lead to notable price reactions. This revelation may also pave the way for the approval and launch of ETFs centered around these cryptocurrencies in the coming months.
Such developments would likely stimulate robust institutional and whale activity in the market.
As a result, the next wave of the bull market could prove to be quite intriguing. This announcement may set the stage for a bullish trend in March, potentially leading to further recovery after the downturn experienced in recent months.
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.
