TLDR
Trump’s announcement of a strategic crypto reserve including BTC, ETH, XRP, SOL, and ADA triggered a 10% surge in Bitcoin price, reaching over $95,000
Bitcoin options traders are showing renewed interest in $100K strike calls, with open interest increasing by 1,163 contracts worth over $100 million
Market sentiment has shifted bullish following Trump’s Truth Social post directing the Presidential Working Group to proceed with the crypto reserve plan
Trading volumes increased by 159% to $67 billion, while open interest rose 5.89% to $54.49 billion
Some analysts remain cautious, noting potential CME gaps and the need for Congressional approval for the reserve
Bitcoin surged past $93,000 on Monday, marking a 10% increase in 24 hours after former President Donald Trump announced plans for a U.S. strategic crypto reserve. The announcement, made via Truth Social, outlined the inclusion of five major cryptocurrencies: Bitcoin, Ethereum, XRP, Solana, and Cardano.
The market response was immediate and substantial, with Bitcoin reaching a high of over $95,000 during the trading session. Trading volumes surged by 159% to $67 billion, indicating strong market participation and interest in the announcement.
Trump’s directive to the Presidential Working Group represents a major shift in federal cryptocurrency policy. The former president’s announcement detailed plans to establish a strategic reserve that would place Bitcoin and Ethereum at its core, while also including XRP, Solana, and Cardano in the broader portfolio.
Options markets showed renewed optimism following the news. Data from Amberdata revealed that the $100,000 strike call options saw the largest increase in open interest, rising by 1,163 contracts. This surge in options activity represents over $100 million in potential market exposure.
The cryptocurrency market’s response extended beyond just price action. Open interest in Bitcoin futures increased by 5.89% to $54.49 billion, while 24-hour liquidations reached $318.93 million, with $241.21 million in long positions being cleared.
Markey Analysis
Market analysts have begun referring to this phenomenon as the “Trump put,” suggesting that the administration may intervene to support the crypto market during periods of volatility, similar to how the Federal Reserve has historically acted in traditional markets.
Josh Gilbert, a market analyst at eToro, noted that investors might need to adjust to this new dynamic, where presidential involvement could become a regular feature of market movements.
Technical indicators show Bitcoin has established new support levels at $89,000 and $92,000, according to trader Alex Kruger. These levels could serve as important reference points for future price action.
The announcement has also affected market sentiment indicators. Short-term skews, which measure implied volatility premium for calls versus puts, have recovered from negative territory, suggesting renewed optimism among options traders.
However, some market participants have expressed caution about the implementation timeline. Arthur Hayes, chief investment officer of Maelstrom Fund, pointed out that congressional approval would be necessary for funding the reserve.
The timing of the announcement has drawn attention to the upcoming White House Crypto Summit scheduled for March 7, where more details about the reserve’s structure and implementation may be revealed.
Trading patterns show that Bitcoin initially experienced some volatility, dipping below $80,000 before recovering to current levels. This price action has created new CME gaps that traders are closely monitoring.
Analyst Rekt Capital noted that Bitcoin’s weekly close above $93,500 maintains its position within a re-accumulation range, suggesting continued market support at these levels.
#BTC
Bitcoin has managed to fill two CME Gaps, all in one week
But in doing so, Bitcoin has also created a massive brand new CME Gap somewhere between $84650 and $94000$BTC #Crypto #Bitcoin
— Rekt Capital (@rektcapital) March 2, 2025
The market is now focusing on potential resistance levels, with some analysts identifying $104,500 as a key threshold that could signal further upward momentum if breached.
Peter Brandt, a veteran trader, has highlighted the formation of new gaps in Bitcoin futures markets, suggesting that additional price volatility may lie ahead.
