Bitcoin Surges Past $95,000 Following Trump’s Crypto Reserve Announcement
Bitcoin surpassed $95,000 during low-liquidity trading after US President Donald Trump announced the formation of a US Crypto Strategic Reserve, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano. This announcement ignited speculation about crypto's role in the US financial system.
Key Points
- Trump's timing comes amid global market pressures, including newly imposed tariffs and ongoing geopolitical tensions.
- Before the announcement, Bitcoin showed signs of weakness, breaking below its multi-month range.
- QCP Capital suggests the announcement may be a political move to boost Trump's approval ratings rather than a genuine shift towards long-term crypto adoption.
- Concerns remain about whether the price rally is sustainable; Bitcoin is still near the bottom of its multi-month range.
- Historical parallels drawn to the 2019 'Xi Candle,' where a sudden bullish sentiment was short-lived.
Looking ahead, Bitcoin's performance may hinge on upcoming macroeconomic data:
- Wednesday: Purchasing Managers' Index (PMI) data could influence Federal Reserve expectations.
- Friday: Non-Farm Payrolls (NFP) report will affect market sentiment regarding economic resilience.
- Also Friday: White House Crypto Summit may provide insights on the US Crypto Strategic Reserve.
As of now, Bitcoin trades at $90,352.
