Bitcoin’s price surged on Sunday, gaining nearly $10,000 within hours. The sudden price rally pushed the crypto asset from around $85,000 to over $95,000, marking one of its largest single-day gains in months.
Why the Price Pump?
The primary catalyst behind the price surge was a post from United States President Donald Trump on Truth Social, where he mentioned plans for a U.S. strategic crypto reserve and expressed strong support for Bitcoin and Ethereum.
In his post, Trump criticized the Biden administration’s handling of crypto regulation, calling the SEC’s policies “corrupt attacks” on the industry. He pledged to make the U.S. a global leader in digital assets, confirming that Bitcoin (BTC) and Ethereum (ETH) would be at the center of a national crypto reserve alongside XRP, Solana (SOL), and Cardano (ADA).
As seen in the price uptrend, Trump’s endorsement has re-energized crypto markets. Following the post, the Japanese Bitcoin investor Metaplanet announced the purchase of 156 BTC worth $80 million. Notably, the surge may have triggered FOMO (fear of missing out), moving users who sold to buy back at higher prices, further accelerating the rally.
Meanwhile, Trump’s announcement drew reactions from industry figures. Arthur Hayes, co-founder of BitMEX, questioned the plan’s feasibility, pointing out that such a reserve would require congressional approval to allocate funds. Hayes dismissed it as “just words” for now, highlighting that the government cannot buy crypto for its reserve without funding.
Other Crypto Assets Witness Gains
Bitcoin was not the only crypto that surged following Trump’s post. ETH, XRP, SOL, and ADA also saw significant gains as investor sentiment turned bullish across the market.
Ether, the second-largest crypto, jumped over 13%, briefly crossing the $2,500 mark. Ripple, which has long been entangled in regulatory battles with the SEC, saw an even sharper rally. Trump’s proposed inclusion of XRP in the U.S. crypto reserve increased investor confidence, increasing its price by nearly 30% within hours. Among the top cryptocurrencies, Cardano (ADA) recorded the most gains of over 70%.
Solana saw its price surge by 25% as investors viewed its inclusion in the proposed reserve as a significant validation of its long-term viability. Interestingly, the Solana blockchain has gained massive traction recently following the launch of Trump’s memecoins.
