Bitcoin recovers gains after positive signal from Trump for cryptocurrencies, but plunges more than 8% afterwards.
Bitcoin showed high volatility this Monday, the 3rd, after the President of the United States, Donald Trump, announced over the weekend the possible inclusion of some cryptocurrencies in a new strategic reserve under study. This announcement raised the value of digital assets for much of the day, bringing Bitcoin close to the mark of $95,000. However, by late afternoon, the market reversed the trend, and the digital currency recorded a decline of over 8%.
Around 5:10 PM, Bitcoin was down 8.36%, trading at $85,861.99, while Ethereum rose 14.78%, reaching $2,129.71, according to Binance data.
On Sunday, in a post on Truth Social, Trump stated that his executive order on digital assets directed the Presidential Working Group to study the creation of a Strategic Cryptocurrency Reserve, which would include XRP (Ripple), SOL (Solana), and ADA (Cardano). According to AJ Bell, Bitcoin could reach levels above $100,000 after the announcement. "The long-awaited confirmation of a strategic cryptocurrency reserve by the US helped to curb the depreciation in the market and boosted companies like Bitcoin," the firm highlighted in a statement to clients. According to the analysis, the US government may "regularly acquire cryptocurrencies," which tends to strengthen the digital market.
