Bitcoin Surges 9.5% After Trump's Crypto Reserve Announcement

Bitcoin's (BTC) spot price surged by 9.5% on Sunday, climbing from approximately $84,100 to over $94,000. This significant increase followed President Donald Trump's announcement that BTC and four other cryptocurrencies – ETH, XRP, SOL, and ADA – would be included in the U.S. strategic crypto reserve. As a result, the March futures listed on the CME Group experienced a gap-up opening, with the contract starting at $95,000 on Monday, a $9,280 increase from Friday's high of $85,720.

The gap in the futures market represents a non-traded zone, indicating a price level where no transactions occurred between consecutive trading sessions. This absence of trading suggests an abrupt change in market sentiment, which, in this case, is bullish following the past week's sell-off. Gaps are often filled as market participants tend to re-establish a balance after the disruption. A notable example is the past week's sell-off below $80,000, which filled the gap from November.

The emergence of a new gap between $84K and $94K implies that prices could revisit this window once. However, it is essential to monitor market dynamics and other factors that may influence Bitcoin's price trajectory in the coming days and weeks.