GuShiio.com The cryptocurrency market will continue to look for the next big catalyst.
Author:The Kobeissi Letter
Compiled by: Shenchao TechFlow
President Trump announced the U.S. strategic crypto reserves, and the price of Bitcoin exceeded $94,000.
President Trump has officially announced a major plan to build the U.S. strategic crypto reserve and said he is committed to making the United States a global leader in cryptocurrencies.The news quickly triggered a strong reaction from the market. In just three hours, the total market value of the cryptocurrency market increased by more than 300 billion US dollars.
In a statement released at 10:24 am (Eastern Time) on February 3, 2025, Trump said that the United States will consolidate its leading position in the global cryptocurrency field through crypto strategic reserves. However, in this preliminary statement, only Ripple ($XRP), Solana ($SOL) and Cardano ($ADA) were mentioned.
This news pushed the price of the relevant token to rise sharply. Cardano ($ADA) rose 64% in a short period of time, while Ripple ($XRP) and Solana ($SOL) also rose 30% and 21% respectively.
However, investors noticed that Bitcoin (BTC) and Ethereum (ETH) did not appear in the original reserve statement, which sparked speculation and discussion in the market.
In fact, as early as January 16, the New York Post reported that President Trump plans to propose the establishment of a U.S. -first crypto reserve, focusing on supporting digital currencies created in the United States, such as Solana, USD Coin and Ripple.
But at 12:11 noon (Eastern Time), Trump updated his statement to make it clear:
“Obviously, Bitcoin and Ethereum, as other valuable cryptocurrencies, will become a core part of the reserve. rdquo;
The supplementary statement came days after Trump’s son Eric Trump suggested buying on dips on social media, implying optimism about the recent correction in cryptocurrency prices.
Since the announcement, bitcoin prices have rebounded rapidly and have now exceeded $94,000, up nearly 20% from recent lows.
Since 3:00 pm (Eastern Time) last Friday, the price of Bitcoin has soared from $78,200 to more than $94,000. This not only marks that Bitcoin has completely escaped the bear market zone, but also means that it is only about 16% away from its historical high.
Trump’s head of crypto @DavidSacks said that more content will be announced at the Crypto Summit.
President Trump will host the first cryptocurrency summit at the White House this week on March 7. This historic meeting attracted widespread attention, with rumors thatThe strategic reserve list may add more cryptocurrencies.
In addition, this strategic reserve plan could pave the way for the United States to migrate all government spending to blockchain technology.
Elon Musk made a similar proposal a month ago, and if the idea was adopted,$6.9 trillion in annual U.S. government spending could be recorded on a decentralized ledger.
Compared to traditional systems, blockchain technology is expected to significantly reduce audit costs and save billions of dollars in annual expenses.
However, one issue worthy of attention is thatWhy have strategic reserves gradually expanded from initially focusing on Bitcoin to more cryptocurrencies?
During Trump’s campaign, there were proposals to require the United States to purchase 2.2 million to 4 million BTC. However, the current expansion of the scope of reserves has not given a clear policy explanation, which has triggered market speculation.
As of now, we can see the following major developments:
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US Securities and Exchange Commission（SEC) Support cryptocurrencies;
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The Trump administration has made it clear that it supports cryptocurrencies;
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Announced the establishment of an encryption strategic reserve;
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SEC Cancelled multiple lawsuits against cryptocurrencies;
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Trump launched memecoin;
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SEC Indicates that memecoin is not a security.
It can be said that this is by far the most supportive U.S. government of cryptocurrencies.
It is worth mentioning that last Friday, the Nasdaq 100 index rose 2% in just three hours before the close, and there was little obvious good news at that time. This makes one wonder if anyone learned about the crypto reserves in advance?
We expect that when the futures market opens, driven by the news of crypto reserves, technology stocks may open significantly higher.
Looking ahead, the cryptocurrency market will continue to look for the next major catalyst. As many of Trump’s campaign promises have been digested by the market, the market is entering uncharted territory.
Can Bitcoin hit a record high this month? Let us wait and see.
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