Cryptocurrency markets experienced a surge after US President Donald Trump announced the possibility of a strategic crypto reserve, but analysts are warning that the rally may not last long. Trump disclosed on March 2 that his Working Group on Digital Assets had been instructed to include XRP (XRP), Solana (SOL), and Cardano's ADA (ADA) in the US crypto reserve. This announcement led to a marketwide rebound, with the global crypto market cap increasing by almost 7% to $3.04 trillion, and Bitcoin (BTC) surpassing the $95,000 mark following a 7.7% intraday rally. However, analysts caution that the establishment of a US crypto reserve will involve a lengthy approval process, potentially impacting the sustainability of the current market movement. Some analysts believe that the market may be approaching a turning point, with Bitcoin's active addresses reaching a near three-month high on Feb. 28, indicating a possible "capitulation moment." Despite the positive reaction to ADA, SOL, and XRP being included in the US strategic reserve, analysts anticipate short-term volatility in the crypto market. The upcoming White House Crypto Summit hosted by President Trump on March 7 is also generating anticipation among crypto investors, with discussions on stablecoin regulation and legislation related to a potential strategic crypto reserve being key topics.
Cryptocurrency markets surge after Trump announces potential strategic crypto reserve
2025-03-03 22:03:23 Primitive Reading
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