TLDR
- Trump’s weekend announcement of a US crypto reserve plan drove Bitcoin to $95,000
- The move created the largest-ever CME futures gap of $10,350
- A White House crypto summit is set for March 7 where more details will be revealed
- The US crypto reserve will include both Bitcoin and Ethereum holdings
- Market sentiment improved but remains cautious with Fear & Greed Index at 33/100
The cryptocurrency market experienced a historical price movement after former President Donald Trump revealed plans for a US strategic crypto reserve, pushing Bitcoin prices to new heights.
Trump used social media to make the unexpected weekend announcement. He confirmed the US government’s intention to hold both Bitcoin and Ethereum as part of its strategic reserves.
The news sparked an immediate market reaction. Bitcoin’s price jumped more than $10,000 in 24 hours, reaching close to $95,000 on major exchanges.
The rapid price movement created unprecedented activity in traditional finance markets. The Chicago Mercantile Exchange (CME) recorded its largest-ever Bitcoin futures gap of $10,350.
This gap formed when CME futures closed at $84,650 before the announcement and reopened at $95,000. The previous record gap was around $4,000 in August 2024.
David Sacks, appointed as the administration’s crypto czar, provided additional context. He explained that the move aligns with Executive Order 14178, aimed at strengthening America’s position in digital assets.
The announcement precedes a highly anticipated White House crypto summit. The March 7 event is expected to provide more details about the government’s crypto strategy.
Behind The Numbers
Trading data shows strengthening market fundamentals following the news. The Coinbase premium, which measures US market activity, moved toward positive territory for the first time in weeks.
Technical indicators suggest improving market health. The aSOPR metric, which tracks onchain profitability, moved above break-even levels after reaching multi-month lows.
Traders have identified $90,000-$91,000 as a key support zone. This price range previously acted as a bottom during recent market movements.
The news comes during a busy week for financial markets. The US jobs report and Federal Reserve Chair Jerome Powell’s speech are scheduled for March 7, coinciding with the crypto summit.
Market sentiment showed signs of recovery but remained cautious. The Fear & Greed Index rose to 33/100, up from recent lows but still in fear territory.
Some analysts point to the CME gap as a potential price target. Historical patterns suggest these gaps often fill, though timing varies widely.
The crypto reserve announcement adds a new dimension to US digital asset policy. Sacks indicated this forms part of a larger plan to make the US the “Crypto Capital of the World.”
Trading volumes surged across major exchanges as investors reacted to the news. Both spot and futures markets saw increased activity levels.
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