Trump is set to host the first-ever Crypto Summit at the White House on March 7, where he is expected to unveil further strategies for supporting crypto regulations and businesses in the U.S.
The announcement of a proposed national strategic reserve including Solana (SOL), Cardano (ADA), and XRP sent these assets surging up to 60% on Sunday. However, traders remain cautious as they await more concrete details.
“While the market has reacted positively, a short-term correction could follow as investors assess the feasibility of Trump’s plan and any potential legal challenges,” said Kevin Guo, director of HashKey Research, in a Telegram message to CoinDesk on Monday. “Federal Reserve Chairman Jerome Powell has previously stated that the U.S. central bank cannot hold Bitcoin in reserve, so there are still technical and regulatory obstacles to overcome.”
Guo added that Trump’s Crypto Summit may provide additional clarity or new announcements that could further bolster the market’s recovery from recent lows.
Late Sunday, Trump revealed on Truth Social that XRP, SOL, and ADA would be part of the proposed U.S. strategic crypto reserve. Shortly after, he expanded the list to include Bitcoin and Ethereum. Trump had hinted at this initiative during his 2024 presidential campaign.
The market responded swiftly, with Bitcoin climbing 6.5% to over $93,000 on Monday. The broader crypto market, tracked by the CoinDesk 20 (CD20) index, saw a 7% increase.
Other tokens also experienced gains, with Chainlink (LINK), Uniswap (UNI), and Movement (MOVE) rising 8% in the past 24 hours, largely due to their affiliation with World Liberty Financial, a firm reportedly backed by the Trump family.
Despite the rally, analysts caution that further developments are necessary to sustain the momentum.
“We anticipate heightened volatility until there is more clarity on the strategic reserve,” said Chris Yu, CEO of SignalPlus, in a Telegram message to CoinDesk. “However, sentiment has shifted rapidly, indicating the potential continuation of the bull market.”
Yu noted that investors will closely monitor capital inflows into U.S.-traded crypto ETFs, which experienced record outflows last week. A reversal in this trend could signal a market bottom and reinforce the bullish outlook.
