Bitcoin (BTC) Soars Over 10% Following Trump’s Crypto Strategic Reserve Announcement, Eyes $100K Mark

bitcoin has experienced a noteworthy resurgence, climbing approximately 10% over a span of just 48 hours, surpassing the $85,000 mark on March 2, 2025. This price recovery follows a significant downturn, where Bitcoin fell to a 120-day low of about $78,200 just prior, on February 28. Analysts point to several key indicators suggesting that Bitcoin may be poised for a strong March.

The recent hike in Bitcoin’s price is primarily attributed to a significant announcement from President Trump regarding the establishment of a Crypto Strategic Reserve. This strategic move has not only reignited interest among investors but also rekindled confidence after a tumultuous period leading up to the announcement. Coupled with expectations of a hike in tariffs on imports from Canada and Mexico, this has fueled demand for Bitcoin as traders increasingly view it as a safeguard against potential economic instability.

Amidst this backdrop of political and economic uncertainty, Bitcoin’s decline during February, where it lost more than 25% of its value, prompted a wave of strategic buying among investors looking to capitalize on lower prices. The cryptocurrency reached its nadir on February 28 before the sharp recovery began, showcasing how quickly market sentiment can shift.

Trump’s imposition of tariffs on Canadian and Mexican imports released a ripple effect across financial markets, contributing to declines in major indices, including the S&P 500, the Nikkei in Japan, and Germany’s DAX. As investors reevaluated their positions amidst geopolitical tensions, Bitcoin’s attractiveness as a hedge against traditional risk assets became apparent.

Bitcoin’s strategic resurgence began as it eclipsed the $86,000 level early in trading on March 2, driven by Trump’s announcement of the Crypto Strategic Reserve. The reserve plans to encompass assets such as Bitcoin (btc), solana (SOL), Ripple (XRP), and Cardano (ADA), signaling an inclusive strategy for U.S. digital asset holdings.

Soon after the announcement went public via Trump’s platform, Truth Social, Bitcoin surged an additional 3%, exceeding $91,000 at one point. This immediate response reflects the market’s enthusiasm and the recognition of cryptocurrencies within official economic protocols. It marks a substantial shift in how digital assets are perceived in the broader financial landscape.

Analysts assert that Trump’s decision mirrors trends observed in countries like El Salvador and Bhutan, which have integrated Bitcoin into their national reserves. This diversification lessens the risks associated with holding a single asset and allows the U.S. to leverage the distinct advantages each digital currency presents.

As capital is spread across multiple cryptocurrencies, Bitcoin might not experience the same level of upside it could if it were the sole asset. Yet, the implications of having government backing could enhance institutional confidence, positioning Bitcoin for potential value growth beyond $150,000 in the medium to long term.

The short-term trajectory may see Bitcoin’s market dominance temporarily diluted as investments are redirected into the newly added assets in the reserve. However, the long-term benefits of this diversification could ultimately validate Bitcoin’s foundational strength, ensuring its continued growth and relevance in the rapidly evolving financial ecosystem.

Bitcoin’s price forecast remains optimistic, indicating a possible breakthrough past the coveted $100,000 mark driven by the bullish sentiment following the announcement. The recent fluctuations in the market show a strong rebound, as Bitcoin retraced from a low of $78,200 to approximately $90,558 in a mere two days. This volatility was accompanied by a surge in trading volumes, highlighting a restored investor confidence.

Technical indicators also support bullish market conditions, showcasing a robust MACD (Moving Average Convergence Divergence) signal that suggests a shift in market momentum favoring buyers. The impending price action could see Bitcoin not only testing support levels around $100,000 but also potentially breaching that barrier if short sellers, who capitalized on February’s downturn, are unable to mount a significant defense.

While it is critical to monitor for potential bearish movements, particularly if Bitcoin fails to secure a closing price above the $88,000 threshold, the prevailing momentum is decidedly positive. With renewed interest from institutional investors bolstered by regulatory backing, Bitcoin seems well-positioned to navigate its next pivotal phase in the cryptocurrency market. As the market continues to evolve, the implications of government endorsement of digital assets will likely reignite interest and investment pours back into the sector.