A favorable tweet about strategic reserves led to a strong V-shaped reversal for Bitcoin, causing a market frenzy as Bitcoin soared to $95,000, and the overall market capitalization of cryptocurrencies surged by over $300 billion within just a few hours!
This wave of the market can be said to be a case of success and failure both stemming from Trump.
After Trump announced the upcoming cryptocurrency summit, he also stated on social media that he would push for digital currencies as strategic reserves, directly triggering a market surge. He specifically mentioned that the strategic reserves include not only Bitcoin and Ethereum but also SOL, XRP, and ADA.
So is this wave of the market truly a historic boon, or is it a carefully orchestrated market manipulation to buffer emotions?
Trump's statements did indeed boost the rebound of BTC and four other cryptocurrencies, but this time Trump has overdrawn the market's sentiment towards strategic reserves. If substantial policies are delayed, this upward trend will be hard to sustain, and a pullback is highly likely. However, if the reserve plan aligns with Trump's recent tweet and is successfully implemented, it could take the crypto market to new heights.
I still suggest everyone choose to reduce holdings when prices rise, securing profits. However, in the current market environment, you should also avoid shorting, and if trading contracts, ensure you have stop-loss measures in place. After all, Trump might throw out new moves at any time. If BTC is really included in the U.S. national strategic reserves, the market may see a massive rally, and short positions will face enormous risks. Even if this possibility is very low, I wouldn’t bet on it.
Countdown to the March 8 cryptocurrency summit: Will the details of BTC’s strategic reserves act as a catalyst for the market?
Next, we need to pay attention to whether Trump will make another big move at the crypto summit on March 8. Will market sentiment continue to experience FOMO?
Last night’s Trump announcement absolutely injected another ‘shot of adrenaline’ into the market, instantly igniting market sentiment. This also means that the Bitcoin strategic reserve bill is about to take shape, with some specific details expected to be announced at the crypto summit in the early hours of March 8. Crypto czar David Sacks also stated that he will disclose more important information at the cryptocurrency summit.
This determines whether the short-term market can continue to surge. We can take profits in batches following market sentiment. The market is always about buying when no one cares and selling when there is a lot of noise. This wave of the market also shows that Trump’s actions are all focused on making money for himself.
There’s a feeling of trading coins alongside the president now. He has his own positions, and the market has become accustomed to his calls. However, it’s also quite good; a president driven by interests will act when paid. During Trump’s four years in office, the crypto market is likely to have plenty of opportunities to make money.
As for altcoin season? Don’t rush!
It has been said many times in the past: having altcoins is just a small seasonal thing. It’s hard to see a significant rise across all sectors because the market doesn’t have that much liquidity. The balance sheet is still being reduced, and we don’t know where the next interest rate cut will come from.
The limited funds currently only concentrate on a few sectors. The key is that last night’s stimulus of knowledge emotion has not yet truly brought in more funds, but I also believe that Bitcoin will likely see new sectors emerge during the upcoming period of volatility! Don’t be greedy or timid; take action when necessary.
Recently, the AI Agent sector is still very strong, along with cryptocurrencies related to Trump, such as Bitcoin, SOL, XRP, ADA, etc. There are also some coins that are clearly controlled by strong institutions, such as RATS, SLERF, and RUNE.
If you missed this wave of the market, you can look at coins that haven’t taken off yet. It’s important to know that artificial intelligence is a key sector that not only has imagination but also attracts a lot of funding attention. You can look for those strong institutional coins that have already been washed out, whether they are MEME coins or value coins.
AI sector: SWARMS, AI16Z, SHELL
Coins controlled by strong institutions: SATS, RATS, RUNE, SLERF, PNUT, ACT, DOG, ENS, METIS, AVAX, LTC
Additionally, a reminder: if the coins you recently purchased have surged too much or your position is too heavy, you can consider reducing your holdings. Personally, I feel that the market will be relatively stable before the conference on the 7th. The saying 'the market always drops during conferences' shouldn’t be taken completely seriously, but it shouldn’t be ignored either.