Trump's Crypto Reserve Plan Boosts Bitcoin and Ethereum

Bitcoin and other cryptocurrencies surged after U.S. President Donald Trump announced plans for a U.S. strategic reserve encompassing digital currencies such as Bitcoin and Ethereum. This initiative, unveiled on Truth Social, has significantly uplifted market sentiment, despite past disappointments in Trump's crypto policy endeavors.

In a surprising move, Bitcoin surged upward by 20% from last week's lows, following U.S. President Donald Trump's announcement of a strategic reserve including major cryptocurrencies. Other tokens, such as Ethereum, XRP, and Cardano, likewise experienced significant gains, reversing a previous downward trend fueled by regulatory uncertainty.

The president revealed on Truth Social that his January executive order laid the groundwork for this reserve, aiming to support cryptocurrencies like Bitcoin and Ethereum. This announcement has provided a much-needed boost to the crypto market, which had been hampered by skepticism over Trump's commitment to deregulating the crypto industry.

Market analysts have noted that while the announcement has bolstered prices, it raises questions about funding sources, with potential implications for investors and taxpayers alike. The White House Crypto Summit hosted by Trump later this week may further influence market dynamics and investor sentiment.

(With inputs from agencies.)