Key Takeaways
- The crypto market surged by $330 billion after President Trump’s announcement of a U.S. crypto reserve.
- Despite the rally, nearly $900 million in positions were liquidated within 24 hours.
- Analysts suggest Bitcoin could target the $100,000 mark as momentum builds.
The cryptocurrency market soared by $330 billion on March 2, when President Trump confirmed plans for a U.S. strategic crypto reserve.
The announcement has helped the crypto market awaken from its deep slumber after weeks of struggling to find its footing.
Crypto Market Spikes, but Liquidations Mount
According to CoinGlass , the crypto market added $330 billion in just four hours following the President’s statement. However, the surge came with heavy liquidations, totaling nearly $900 million within the past 24 hours.
Most of these liquidations were in long positions, with over $350 million wiped out. Short positions also suffered significant losses, amounting to $540 million.
Bitcoin spiked 6.6% to $92,127, triggering $20.3 million in liquidations. Ethereum (ETH) followed, rising 7% to $2,384, while Solana (SOL) jumped 13% to $163.47.
XRP led the pack with a 19% rally to $2.7084, resulting in $4.3 million in liquidations.
Trump’s Crypto Reserve Plan Fuels Market Optimism
The market rally was driven by Trump’s announcement that Bitcoin, Ethereum, XRP, Solana, and Cardano (ADA) would be included in the U.S. strategic crypto reserve.
Trump emphasized that BTC and ETH would be central to the initiative, reinforcing his administration’s commitment to making the U.S. a leader in digital assets.
Adding to the momentum, the White House has scheduled a crypto summit for March 7, bringing together top industry leaders, investors, and policymakers.
What To Expect After Trump’s Post
Following Trump’s announcement, analysts believe the crypto rally could have more room to run.
Kathleen Brooks, research director at XTB, told CCN:
“March is gearing up to be a seminal month for financial markets. Firstly, the big move late on Sunday was in crypto. President Trump announced an executive order to create a crypto strategic reserve, which will include a variety of crypto coins, including some of the smaller coins like SOL and ADA.”
Brooks noted the irony of Bitcoin, a decentralized asset designed to be independent of government control, now gaining momentum due to U.S. government backing.
She expects a broad-based recovery in crypto, with $100,000 being the next logical target for BTC. The surge in options trading activity suggests bullish sentiment, with traders placing bets on further gains now that Trump has aligned himself with crypto.
Stocks Could Follow Crypto’s Lead
Brooks added that the crypto rally could spill over into U.S. stocks, particularly tech stocks.
The analyst highlighted that Bitcoin had traded like a tech stock since it peaked in mid-January. Now that Bitcoin is in recovery mode, it may drag the Nasdaq higher with it.
She pointed out that the Magnificent Seven tech stocks had been under pressure this year, hitting their lowest level since November 2024 last week. However, they staged a rebound on Friday ahead of the Trump announcement.
“If tech stocks do follow crypto higher, this could help broader U.S. indices to recover after a bruising start to the year.“
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