Market Analysis

Image Credit: Reuters

Bitcoin rose on Thursday, continuing its rebound from recent losses amid growing speculation about U.S. President Donald Trump's plans to create a crypto reserve ahead of a White House summit later this week.

Risk sentiment was also supported by Trump's decision to ease some of the 25% tariffs on Canada and Mexico, though the tariffs on China remained in place. The president also hinted at additional trade duties in April.

Despite the volatility, Bitcoin was trading well above the sub-$80,000 levels it hit last week, when concerns over slowing U.S. growth and a potential global trade war dampened risk appetite.

Trump's previous mentions of a crypto reserve had only led to brief price surges.

Bitcoin climbed 6.2% to $92,532.3 by 00:46 ET (05:46 GMT), tracking a broader recovery in global stock markets.

In related news, U.S. Commerce Secretary Howard Lutnick revealed to The Pavlovic Today that Trump will unveil more details about his plans for a Bitcoin strategic reserve during Friday's White House crypto summit. Lutnick confirmed that Bitcoin will receive special consideration as part of Trump's crypto strategy.

Trump is expected to outline his administration's approach to crypto regulation, especially after signing several executive orders aimed at creating a regulatory framework for digital assets. The announcement about a government-backed crypto reserve will be a key topic at the summit. Trump previously highlighted five cryptocurrencies—Solana, Cardano, XRP, Bitcoin, and Ether—as candidates for inclusion in the reserve.

However, there are still uncertainties regarding how the reserve will be established, either through an executive order or via Congress. An executive order would limit the funds available for the reserve, while a Congressional approach could face opposition from policymakers, especially with Trump's focus on reducing government spending.

This uncertainty led to brief, positive price movements in the crypto market following Trump's earlier comments on the reserve.

In line with Bitcoin’s rise, other cryptocurrencies also saw gains. Ether increased 6.4% to $2,319.80, while XRP rose 3.9% to $2.5276. Solana and Cardano climbed 5.7% and 2.3%, respectively.

Meme coins also joined the rally, with Dogecoin surging 9.1% and $TRUMP rising 5.6% from near-record lows.

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