Bitcoin rises past $90k after Trump showed support for crypto as federal reserve

Leading cryptocurrency Bitcoin has regained momentum following its recent crash. The world-famous crypto saw its price increase by 20 per cent over the weekend after President Trump’s post on the creation of a federal reserve of cryptocurrency assets.

Bitcoin rallied as high as $95K on Sunday after the President’s announcement via social media before cooling to $92K at the time of publication.

President Donald Trump again exhibited his support for digital assets in the creation of a federal reserve of cryptocurrency assets. He initially highlighted XRP, Solana, and Cardano for inclusion, then later said Bitcoin and Ethereum would “obviously” be included too.

On his social network Truth Social, Trump made it clear that he wants to see the crypto reserve become a reality.

 “A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA. I will make sure the U.S. is the Crypto Capital of the World,” Trump wrote. 

With the post, the prices of all three cryptocurrencies mentioned by Trump rose by 20 per cent or more. In a follow-up post, the U.S. President wrote “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum!”

Recall that in January, Donald Trump issued an executive order calling for the formation of a working group that would make recommendations around crypto policy, including the potential creation and maintenance of a national digital asset stockpile.

The working group was supposed to propose criteria for establishing such a reserve which could be potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.

White House AI and crypto czar David Sacks also endorsed President Donald Trump’s declaration of an American strategic reserve for cryptocurrency.

“President Trump has announced a Crypto Strategic Reserve consisting of bitcoin and other top cryptocurrencies,” Sacks wrote in a post on the social media site X.  President Trump is making the U.S the “World’s Crypto Capital.’

“On Friday, March 7, President Trump will host the first White House Crypto Summit.. Prominent CEOs, investors, and founders from the cryptocurrency sector will be among the attendees. I hope to see you all there!” Sacks said while announcing plans for a major industry gathering.

The summit is anticipated to help the administration and important stakeholders communicate, strengthening America’s prominent position in the global crypto industry.

Also Read: Bitcoin plunges below $80,000 as crypto market crashes amid tariff fears

Recent Bitcoin and other crypto lows

Last week, Bitcoin experienced a major drop, falling below $90,000. This was triggered by reports of U.S. President Donald Trump’s tariffs against Mexico and Canada, which triggered a sell-off in the crypto markets.

In his reaction, President Trump stated that the US was ‘on time with the tariffs’ on Canada and Mexico, noting that the U.S. had been mistreated by its neighbours and allies.

“We’re on time with the tariffs, and it seems like that’s moving along very rapidly…We’ve been mistreated very badly by many countries, not just Canada and Mexico. We’ve been taken advantage of,” Reuters reported, citing Trump at the White House. 

The result saw President Trump imposing a 25 per cent tariff on imports from Canada and Mexico. James CryptoGuru, a popular crypto analyst on X, highlighted that Trump has wiped out up to $734 billion of the crypto market since his second term commenced on January 20.

However, the decline showed how strong the U.S. President’s tariff can influence the crypto world as Bitcoin continues to react strongly to macroeconomic events.

Data from Coinglass revealed that the crash resulted in nearly $1 billion in total liquidations across the crypto industry. Earlier this month, over $2 billion was wiped out from the crypto market, causing a historic liquidation event.

The drop also comes about a month after Bitcoin hit a new record hours before President-elect Donald Trump’s inauguration on January 20. The cryptocurrency surged over $109,000 and pumped up after Donald Trump said he’ll take action on his promises to the crypto industry once he assumes office. 

On a broad line, the cryptocurrency market descended into chaos early Friday morning as Bitcoin, the world’s leading digital currency, crashed below the $80,000 price tag, settling at $79,000, for the first time since late November 2024.

This steep decline dragged the global cryptocurrency market capitalization down to $2.74 trillion, reflecting an 8.92 per cent drop in just 24 hours. Trading volume also surged to $184.43 billion. The broader crypto ecosystem mirrored this turmoil, with its total market cap falling 8.58 per cent to $2.62 trillion over the same period.

Other cryptocurrencies saw significant losses with Ethereum (ETH) dropping by 8.5 per cent to less than $2,500, while XRP lost 9 per cent of its value to trade at $2.25. Several speculative assets experienced intensified selling pressure, leading to forced exits by traders and investors.