Trump's Crypto Reserve Tease Boosts Bitcoin, Then Fades

Cryptocurrency markets experienced a brief rally over the weekend following U.S. President Donald Trump's announcement of plans for a strategic U.S. crypto reserve. However, prices have since turned lower, with Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) all declining.

On social media, Trump teased details about the crypto reserve, which sent Bitcoin's price surging nearly $14,000, or about 18%, to above $93,000. Ethereum also gained 13% over the past few days, while stocks of cryptocurrency trading platforms such as Coinbase and Robinhood rose 9% and 7%, respectively.

However, the gains were short-lived. As of March 3, Bitcoin is down 1% ahead of U.S. markets opening, while other cryptocurrencies such as Ethereum, Solana, and XRP are down 5% or more. Some crypto bulls praised the announcement of a crypto reserve as a way to boost Bitcoin's price, which had fallen below $80,000 on February 28. However, others were more skeptical about the timing of the announcement and questioned how the crypto reserve will work.

Bitcoin is currently trading at $93,100, having declined 1% in the last 24 hours. The cryptocurrency is flat on the year. Most Wall Street firms do not offer ratings or price targets on Bitcoin, but the price of BTC has declined 4.66% in the last 12 weeks.