Bitcoin Surges 10% as Trump Announces Strategic Crypto Reserve
In a dramatic market shift, Bitcoin (BTC) has surged nearly 10% in the past 24 hours, pushing towards the psychological $100,000 level after former President Donald Trump’s game-changing announcement regarding a U.S. strategic crypto reserve. The announcement, which has reignited bullish sentiment across the crypto market, has particularly energized options traders betting on Bitcoin reaching six figures.
Trump’s announcement on Truth Social revealed plans to include five major cryptocurrencies in the strategic reserve: Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). This development comes as part of Trump’s broader crypto strategy, which has sent shockwaves through the digital asset market.
Market Impact and Price Action
The immediate market response has been overwhelmingly positive:
- Bitcoin reached a high of $95,000
- Key support levels established at $89,000 and $92,000
- Significant increase in $100K call options activity
- Other named tokens (ETH, XRP, SOL, ADA) posted even larger gains
The “Trump Put” Phenomenon
Market analysts are now discussing the emergence of a “Trump put” in crypto markets, similar to the famous “Fed put” in traditional markets. This implies potential government intervention to support crypto markets during periods of significant stress.
Options Market Response
The derivatives market has shown strong bullish sentiment:
- 1,163 new contracts opened for $100K strike calls
- Total value exceeding $100 million in new positions
- Positive shift in 7-, 30-, and 60-day skews
Challenges and Skepticism
Despite the overall optimistic sentiment, some market observers have raised concerns:
- Congressional approval requirements
- Funding mechanism uncertainty
- Implementation timeline questions
- Regulatory hurdles
Looking Ahead
The crypto market’s attention is now focused on the upcoming White House Crypto Summit on March 7, which could provide crucial details about the implementation of the strategic reserve. Market participants should monitor:
- Congressional developments
- Regulatory frameworks
- Implementation timelines
- International response
Source: CoinDesk