Bitcoin Surges Past $93,000 Following Trump’s Strategic Crypto Reserve Announcement
Bitcoin (BTC) has experienced a dramatic price surge over the weekend, climbing above $93,000 following a surprising announcement from US President Donald Trump regarding plans for a national strategic cryptocurrency reserve.
The leading digital asset BTC/USD has gained approximately 15% since hitting multi-month lows of $78,000 just days earlier, demonstrating remarkable resilience and renewed market confidence.
Trump Endorsement for a Crypto Reserve Catalyzes Weekend Rally
President Trump disclosed intentions for a strategic cryptocurrency reserve including Bitcoin, Ethereum, and other altcoins in a series of posts on Truth Social. The President added, “I also love Bitcoin and Ethereum!” saying that these two main cryptocurrencies would be “at the heart of the Reserve.” First citing mainly XRP, Solana, and Cardano, the latter explanation on BTC and ETH set off notable market action even with usually low weekend trading volume.
The combination of limited weekend order book liquidity and the surprising high-profile backing from the US government helps market watchers explain the fast price rise. Prominent crypto trader and expert Michaël van de Poppe advised this might indicate a significant change: “The bottom is in. The low is in coins. The last simple cycle now under progress.
Global Perspectives on Bitcoin as Reserve Asset
Not many central bankers share the excitement the United States seems to be embracing about Bitcoin as a strategic reserve asset. Citing issues with volatility, liquidity, and security concerns, Swiss National Bank President Martin Schlegel recently voiced doubt about a plan to make Bitcoin a reserve asset in Switzerland.
“Our reserves must be highly liquid so that they may be used rapidly for monetary policy purposes if needed,” Schlegel said to Swiss media source Tamedia on March 1. Additionally stressing possible technical flaws in bitcoin systems, he said, “software can have bugs and other weak points.”
The different methods draw attention to the continuous worldwide discussion on the part Bitcoin plays in national financial policies. Although Switzerland’s central bank is still wary, similar ideas for Bitcoin reserves are under review in the Czech Republic and Hong Kong; El Salvador is sticking to its present Bitcoin accumulation plan starting in 2021.
Spot Bitcoin ETF Flows Finally Turn Positive
The price comeback corresponds with a favorable change in Bitcoin ETF flows. US spot Bitcoin ETFs reported $94.3 million in net inflows on February 28th following an eight-day run of outflows above $3.2 billion. This reversal started when the market started to show first indications of recovery following the extreme fall in February.
Among individual funds, ARK 21Shares Bitcoin ETF topped with $193.7 million in inflows while Fidelity’s FBTC drew $176 million. With $244.6 million in withdrawals, BlackRock’s iShares Bitcoin Trust (IBIT) was an exception even if it remained the biggest spot Bitcoin ETF by assets under management.
BTC/USD Technical Analysis Shows Signs of Sustained Rally
Technical indicators point to this maybe not being just a passing pump. Analyst Rekt Capital claims that Bitcoin’s latest decline to $78,000 marked a “downside deviation” — a trend that has historically preceded notable stages of bull markets. Rekt Capital observed, “Bitcoin has recovered almost the entirety of its downside deviation.” A weekly closing over $93,500 would be vital for verifying re-entry into what they define as the “Re-Accumulation Range.”
This rally’s apparent basis in spot demand rather than speculative leverage makes it more interesting. With almost $200 million in spot inflows recorded in one hour during the height of the weekend rally, data reveals the Spot Cumulative Volume Delta (CVD) indicating high buyer aggressiveness. Futures open interest has also dropped concurrently, implying that real buying rather than leveraged speculation drives this rise instead of usually regarded as a better base for steady price increase.
Bitcoin’s Outlook
Investors are eagerly observing whether Bitcoin can sustain important technical levels as it trades close to $93,000. Anticipated to offer further clarification on the administration’s cryptocurrency policies and another impetus for market action, the forthcoming White House crypto summit set for March 7th
BlackRock’s recent choice to allocate 1% to 2% of its spot Bitcoin ETF to one of its model portfolios also shows increasing institutional confidence in the asset class, hence maybe paving the path for more general acceptance among traditional financial players.
March has begun with fresh hope that the downturn may have run its course, therefore laying a possible basis for Bitcoin’s next significant rise following the worst month in three years.
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