Bitcoin Surges 20% Following Trump's Endorsement of Reserve Tokens

Cryptocurrency was trading higher by a fifth from its lows last week on Monday. Several other currencies are among those that U.S. President Donald Trump declared would be part of the strategic reserve that will be created by the U.S. strategic reserve also increased sharply.

Trump stated in a blog article via Truth Social that his January executive order regarding digital assets will create an inventory of currencies, including bitcoin and XRP. cardano, and solana. The names have not yet been revealed.

Bitcoin and ether will be at center of this reserve," the post was made on Sunday.

The tweet led the world's most popular cryptocurrency higher by more than 20 percent from the levels it traded at on Friday, boosting to boost sentiment for a coin that has been falling since mid-January, based on displeasure Trump hasn't kept his word on his promises to ease regulation.

The last time it traded was around $94,154, a rise from the previous day's $78,273.

Trump's blog post describing his inclusion of crypto tokens into the reserve "clearly a positive shock to the crypto scene and a shot in the arm for a market desperately in need of a catalyst to alter the bear trend lower" according to Chris Weston, head of research at Australian online broker Pepperstone.

It's possible that the uptrend could extend into the White House Crypto Summit Trump will be hosting on Friday and the possibility is that market bearishness elsewhere might impact the sentiment, he added.

Although Wall Street closed higher on Friday, the recent drop in tech bellwethers with large amounts of technology like Nvidia has undermined the trust in Bitcoin, a cryptocurrency that some consider to be an alternative technology proxy.

Bitcoin declined over 17 percent in February, registering the highest monthly percentage drop since June 2022. The cryptocurrency lost nearly a quarter its value since hitting $10,000 in early January.