The post Trump’s Reserve Shock Revives Cautious $100K BTC Hope appeared on BitcoinEthereumNews.com.

By Omkar Godbole (All times ET unless indicated otherwise) The flip-flopping nature of the crypto market is on full display as the sentiment on social media has changed from “it’s so over” to “we are so back” in just 24 hours, thanks to President Donald Trump naming BTC, ETH, XRP, SOL and ADA as candidates for the long-promised strategic crypto reserve. The announcement has lifted valuations across the board, with market leader bitcoin reinstating $89,000 and $91,000 as key support levels, and the options market shows renewed interest in the $100K bets. Still, some analysts are calling for caution. “Crypto is back on track with a positive momentum and enthusiasm from investors. However, it’s important to note that no concrete actions have been taken yet, and a continued lack of immediate catalysts could lead to another slowly correcting market,” Valentin Fournier, analyst at BRN, said in an email. That’s sensible because tough questions may be asked once the initial excitement about the announcement subsides. For instance, Trump still needs congressional approval for this basket of reserves. While BTC makes sense as a reserve asset, having reportedly found a place in investor portfolios as digital gold, including XRP, ETH, SOL, and ADA raises concerns, as some of these tokens barely have links to economic activity. It begs the question: Why would a government facing debt issues invest in assets with minimal ties to the economy and are unlikely to generate a significant multiplier effect and help improve debt-to-GDP ratios? Plus, allegations of insider trading related to Trump’s Sunday announcement might dent sentiment. On Sunday, an unidentified trader deployed roughly $6 million in a 50x leveraged long bet on BTC and ETH and booked out with a profit of $6.8 million. “A U.S. crypto reserve could be a great boon to the asset…

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Filed under: News - @ March 3, 2025 1:24 pm