Bitcoin has surged over 20% from last week’s lows, marking one of the most significant rallies in early 2025, after former U.S. President Donald Trump hinted at the creation of a new U.S. strategic reserve that could include major cryptocurrencies. The announcement, made via a post on Truth Social, ignited renewed optimism across the digital asset market and triggered sharp gains in not only Bitcoin but also Ether, XRP, Solana, and Cardano.
Market Reaction to the Strategic Reserve Proposal
Trump revealed that his January executive order on digital assets would establish a stockpile of select cryptocurrencies, including Bitcoin, Ether, XRP, Solana, and Cardano—names that had not been previously disclosed. He emphasized that Bitcoin and Ether would form the core of this reserve, signaling strong governmental recognition for the two largest digital assets by market capitalization.
The news sent shockwaves through the crypto markets. Bitcoin jumped to approximately $91,605**, up from Friday’s low of **$78,273—a surge of more than 17% in a short span. Ether followed closely, rising 20% from its Friday lows to $2,351, despite being down 7% from its Sunday closing levels.
Other altcoins saw even more dramatic increases:
- XRP and Solana each climbed around 30% from their Friday lows.
- Cardano posted an impressive 60% gain from last week’s lowest levels.
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Restoring Investor Confidence
The rally marks a pivotal turnaround for Bitcoin, which had been trending downward since mid-January amid growing disappointment that Trump had not yet delivered on earlier promises to ease cryptocurrency regulations. After peaking above $105,000 in early January, Bitcoin lost more than a third of its value, culminating in a 17% monthly drop in February—its steepest decline since June 2022.
“Trump just gave the pump that crypto traders have been holding out for,” said Matt Simpson, senior market analyst at City Index. “Any faith that was lost last week appears to have been restored.”
Analysts suggest that unless there’s a broader risk-off sentiment in global markets, the momentum could carry Bitcoin toward fresh highs. The upcoming White House Crypto Summit, scheduled for later in the week, is now seen as a potential catalyst for further bullish movement.
Broader Market Sentiment and Tech Sector Influence
While Wall Street ended Friday on a positive note, the recent sell-off in major technology stocks—particularly Nvidia—has dampened investor confidence. Bitcoin, often viewed as a tech-adjacent or speculative asset, has not been immune to these cross-market pressures.
Chris Weston, head of research at Pepperstone, noted that although crypto markets are rallying on policy optimism, they remain vulnerable to broader financial trends. “The rally could extend into the first White House Crypto Summit,” he said, “but ongoing bearishness in equities may weigh on overall sentiment.”
The Irony of Decentralization vs. Government Influence
One of the most debated aspects of this development is the irony it presents: Bitcoin was originally designed as a decentralized, government-resistant currency. Yet now, its price trajectory appears increasingly tied to U.S. political decisions.
Kathleen Brooks, research director at XTB, highlighted this contradiction: “Ironically, a currency that was designed to be isolated from government interference and decentralized, is now reliant on the U.S. government for its fortunes.” She added that the $100,000 milestone remains an “obvious target” for Bitcoin if current momentum holds.
Policy Clarity Still Lacking
Despite the excitement, concrete details about the strategic reserve remain scarce. Beyond appointing several crypto-friendly officials since taking office, the Trump administration has yet to release comprehensive policy frameworks or implementation plans.
IG market analyst Tony Sycamore cautioned investors about reading too much into the announcement: “While this has significantly boosted prices, it has also raised concerns.” He pointed out two key uncertainties:
- Whether funding for the reserve will come from taxpayer dollars.
- Whether the cryptocurrencies included will be newly purchased or sourced from assets seized during law enforcement operations.
“If it’s the latter,” Sycamore noted, “it’s not nearly as bullish—it simply represents a transfer between accounts rather than new buying entering the market.”
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Frequently Asked Questions (FAQ)
Q: What caused Bitcoin’s 20% surge in early 2025?
A: The surge was triggered by former President Donald Trump’s announcement on Truth Social about creating a U.S. strategic reserve that includes Bitcoin and other major cryptocurrencies like Ether and XRP.
Q: Which cryptocurrencies are included in the proposed reserve?
A: According to Trump’s post, the reserve would include Bitcoin, Ether, XRP, Solana, and Cardano—though official documentation has not yet been released.
Q: Is the U.S. government actually buying these cryptocurrencies?
A: It’s unclear. The funding source hasn’t been confirmed—it could be taxpayer-funded purchases or involve previously seized crypto assets. The latter would have less market impact.
Q: Could Bitcoin reach $100,000 again?
A: Analysts believe it’s possible if current bullish momentum continues and if further supportive policies are announced during events like the White House Crypto Summit.
Q: How does tech stock performance affect Bitcoin?
A: Bitcoin often moves in tandem with high-growth tech stocks. A selloff in companies like Nvidia can reduce risk appetite, negatively impacting crypto prices—even amid positive regulatory news.
Q: Wasn’t Bitcoin supposed to be independent of governments?
A: Yes—Bitcoin was created to operate outside traditional financial systems. However, its growing institutional adoption and regulatory attention mean its price is now influenced by political and policy developments.