Trump's two tweets saved the market, and the crypto market turned bullish overnight

Compiled by: Deng Tong, Golden Finance

Just when almost everyone was doubting whether the crypto bull market was over, two tweets released by Trump on March 2 reversed the decline of the crypto market, and crypto assets collectively soared.

Trump's two tweets set off the market

On March 2, Trump posted on social media that after years of suppression by the Biden administration, the US cryptocurrency reserves will enhance the status of this key industry, which is why my digital asset executive order instructs the presidential task force to advance the strategic reserve of cryptocurrencies including XRP, SOL and ADA. I will ensure that the United States becomes the world's cryptocurrency capital. We are making America great again!

Then Trump released another message: Obviously, BTC and ETH and other valuable cryptocurrencies will also become the core of the reserves. I also like Bitcoin and Ethereum.

Affected by the good news, BTC reached a high of over $94,000, closing at $94,901.96, up 20.22% from the low of $78,940.44 on February 28.

The trend of crypto assets is positive, especially the crypto assets named by Trump, which even recorded double-digit gains. As of press time, ETH was at $2.469.63, up 11.5%; XRP was at $2.87, up 31.3%; SOL was at $174.19, up 20.4%.

According to the prediction market Polymarket data, the probability of Solana ETF being approved in 2025 is 85%, and the probability of Solana ETF being approved before July 31 has increased from 19% to 34%. The probability of Trump establishing a Bitcoin reserve within 100 days of taking office has risen to 17%.

After being selected as one of the five major targets of Trump's cryptocurrency war reserve, Ripple (XRP) has surpassed Tether in market value and has once again become the world's third largest cryptocurrency. This morning, its market value briefly exceeded US$170 billion.

Is it a rat warehouse or a real positive? What Industry Insiders Say

Trump’s news sparked a great discussion among industry insiders. There are voices of agreement and disagreement.

Really good news?

David Sacks, the White House AI and Crypto Tsar, posted on X: “President Trump announced the establishment of a strategic cryptocurrency reserve consisting of Bitcoin and other top cryptocurrencies. This is consistent with Executive Order No. 14178, which he issued a week ago. President Trump is fulfilling his promise to make the United States the “cryptocurrency capital of the world.” More will be revealed at the summit.

Coinbase co-founder and CEO Brian Armstrong commented on social media about "Trump is pushing forward the cryptocurrency reserve plan" and said that in terms of asset allocation for strategic reserves, Bitcoin may be the best choice. As the successor to gold, Bitcoin has the simplest and clearest narrative. If people want more variety, they can index crypto assets by market capitalization to maintain fairness. But it may be the simplest to just choose Bitcoin.

Michael Saylor, founder of MicroStrategy, said: Bitcoin is the foundation of the crypto economy.

Binance founder CZ said that the current market is clearly dominated by "US crypto assets" and recognized its progress in promoting the development of the industry. He emphasized that the adoption of any cryptocurrency is a positive signal and the industry as a whole benefits, and said that Binance will continue to build.

CZ also pointed out that Trump said that "BTC, ETH and other valuable cryptocurrencies will be included in the crypto strategic reserve", but now all holders' attention is focused on "others". He believes that there is no need to over-analyze, and more "valuable cryptocurrencies" may be added over time, and more countries will follow suit.

Ki Young Ju, founder and CEO of CryptoQuant, posted on the X platform that the current rise of Bitcoin is driven by whales on the crypto exchange Coinbase. He backed up his comments with a chart of the Bitcoin Coinbase Premium Index, which tracks the price difference between BTC prices on Coinbase and Binance.

Tomasz K. Stańczak, co-executive director of Ethereum, said in a post that with the release of the reserve announcement, there is currently a short window of opportunity for all developers building large-scale stable decentralized finance, institutional custody solutions, institutional staking, stablecoins and institutional wallets to demonstrate the maturity, security and broad integration of the Ethereum ecosystem in global finance. Stańczak said there was no guarantee that the Ethereum Foundation would be able to deliver results quickly enough, and he was not sure whether Etherealize was fully operational to execute this within hours, so he encouraged developers not to wait and act immediately. He said the Ethereum Foundation will seek improvements, but stressed that Ethereum is a collection of all excellent developers and can handle highly institutional investments.

Riot Platforms Vice President Pierre Rochard tweeted, "When countries have large Bitcoin positions and a small basket of their own domestic cryptocurrencies, the new world reserve currency is Bitcoin by default. Few people understand this."

Rat warehouse?

While a crowd of people cheered, some people doubted that Trump's policies would drive the crypto market to surge.

Just before Trump released the two messages, some traders used 50 times leverage to buy Bitcoin and Ethereum, using about $4 million in funds to leverage a total of about $200 million in positions. At that time, the prices of Bitcoin and Ethereum were $85,000 and $2,210, respectively. Subsequently, Trump released good news, but the addresses that bought 50 times more closed their positions in an orderly manner. For details, please click "Trump stands up for cryptocurrency again, Bitcoin soars, someone accurately ambushed and made profits, suspected of being a rat warehouse". Therefore, some industry insiders believe that there may be a suspicion of rat warehouses in this round of rising market.

BitMEX co-founder Arthur Hayes commented on the "Trump announcement that he will promote the strategic reserve of cryptocurrency" event, saying, "Nothing new, just talk. Let me know when they get congressional approval to borrow or raise the price of gold again. Without these, they have no money to buy Bitcoin and altcoins. Of course, I am not bearish and still insist on being bullish. But I will not buy more tokens at this point."

Some analysts believe that Bitcoin may fall again in the short term. They expect Bitcoin to fall to around $70,000 before starting the next bull market. As Nexo analyst Iliya Kalchev believes, Bitcoin could "establish solid support in the $72,000 to $80,000 range."

Appendix:

A list of Trump's policies and classic quotes on cryptocurrencies.

• March 2, 2025: Instructs the Presidential Task Force to advance strategic reserves of cryptocurrencies including XRP, SOL and ADA;
  

• March 2, 2025: BTC and ETH will also become the core of crypto reserves;

• February 20, 2025: Hope to be at the forefront of everything, including cryptocurrencies. The Biden administration’s war on Bitcoin and cryptocurrencies has ended;

• February 19, 2025: Signing an executive order to strengthen constraints on independent federal regulators such as the SEC;

• February 13, 2025: Selecting crypto-friendly and former Bitfury executive Jonathan Gould to lead the Office of the Comptroller of the Currency;

• February 12, 2025: Selecting the list of permanent heads of the CFTC, a16z Crypto policy director is at the top;

• January 27, 2025: 100% support for the cryptocurrency industry and will push Bitcoin to a new height;

• January 24, 2025: Establish a cryptocurrency working group to explore the creation of a national digital asset reserve;

• January 21, 2025: Sworn in as the first "crypto president" in American history;

• January 18, 2025: Launch personal Meme coin TRUMP;

• January 16: Will do some "great things" with cryptocurrency;

• January 7, 2025: The U.S. Congress officially certifies Trump's election as president, and Vance is elected as the next vice president;

• December 15, 2024: Will use cryptocurrency to do "some great things" and become an industry leader;

• December 12, 2024: Will do some great things in cryptocurrency and artificial intelligence;

• December 5, 2024: Publish a message to celebrate Bitcoin breaking through $100,000; Trump chooses Paul Atkins serves as the chairman of the US SEC;

• November 21, 2024: Trump's team considers setting up the first cryptocurrency-related position in the White House;

• November 6, 2024: Trump is elected the 47th President of the United States;

• July 2024: Trump attends the Bitcoin Conference and proposes to ensure that the United States becomes the cryptocurrency capital of the earth and the world's Bitcoin superpower.