Market update: Market rises after Donald Trump announcement
After an eventful week, Bitcoin starts the new trading week strongly with an increase of eight percent.
After an eventful week, Bitcoin starts the new trading week strongly with an increase of eight percent. The largest cryptocurrency currently stands at $93,000. For comparison, on the morning of February 28, just three days ago, the price was still at $78,500.
Ethereum is also recording a profit on a daily basis. The second largest cryptocurrency, measured by market capitalization, rose by almost ten percent.
Trump and his 'crypto reserve'
The cause of this strong increase? Donald Trump's announcement on March 2. The former president stated that the United States is building a crypto reserve, naming XRP, Solana and Cardano as the first coins. Later he also added Bitcoin and Ethereum. “I also like Bitcoin and Ethereum,” Trump declared.
His son, Eric Trump, praised the timing of the announcement: “Genius to unveil a strategic reserve on a Sunday when traditional markets are closed and Wall Street is asleep.”
Altcoins also benefit
In addition to Bitcoin and Ethereum, several altcoins also saw significant gains. The biggest risers in the past 24 hours were:
- XRP: +23%
- Solana (SOL): +18%
- Cardano (ADA): +58%
Other coins that rose relatively more than BTC and ETH are Chainlink (LINK) (+14%), Avalanche (AVAX) (+12%) and Internet Protocol (IP) (+21%).
Market Liquidations of $850 Million
The sudden price movement led to massive liquidations in the crypto market. According to data from Coinglass, $850 million worth of positions were liquidated in the past 24 hours. Most of this concerned short positions, or speculation on falling prices.
What does this mean for the market?
Last week, investors on Wall Street sold Bitcoin and Ethereum en masse, leading to large outflows from the spot ETFs of both cryptocurrencies. Whether Trump's announcement will reverse this trend remains to be seen.
Other important market events this week include:- The publication of the ISM Purchasing Managers Index (EMI) on March 3.
- The second interest rate meeting of the European Central Bank (ECB) this year.
- Fed Chairman Jerome Powell's speech.
- The latest US unemployment figures.
Crypto Summit in Washington
On Friday, March 7, the American crypto elite will meet in Washington D.C. for a crypto summit at the White House organized by Trump. According to Trump's crypto advisor David Sacks, new announcements may be made there, which could once again have a positive impact on the market.
Token Unlock from Wormhole (W)
Regardless of broader market developments, investors in Wormhole (W) should take into account a Token Unlock on March 3. Previous unlocks—which occur monthly—led to price drops both before and after the event, according to data from Messari.
