03.03.202510:57 Forex Analysis & Reviews: What lies behind sudden surge in Bitcoin and Ethereum

The sudden bullish turnaround in the cryptocurrency market has created significant panic and speculation.

Yesterday, Donald Trump's latest post reaffirmed his commitment to restoring America's leadership in the crypto industry. Trump accused Biden's administration of deliberately suppressing the crypto industry's growth, stating that his executive order on digital assets includes the creation of a strategic cryptocurrency reserve. He also revealed details about this reserve, which, in his view, should include leading cryptocurrencies such as BTC, ETH, XRP, SOL, and ADA. Trump expressed confidence that the US can reclaim its position as the global leader in digital assets.

According to Trump, establishing a national crypto reserve will be crucial for stabilizing the digital asset market and protecting American investors' interests.

As mentioned earlier, Trump's announcement of a strategic US crypto reserve led to a rapid surge in crypto prices, increasing the total crypto market capitalization by nearly 20% compared to Friday's recent lows. The biggest gainers were Cardano (+70%), XRP (+35%), and SOL (+20%). Meanwhile, BNB saw the smallest growth among the top 10 cryptocurrencies by market capitalization.

Trump's executive order & crypto boom Trump signed an executive order on cryptocurrencies back in January, instructing a task force to assess the creation of a national digital asset reserve. However, Sunday's post was the first time he explicitly referred to it as a "strategic cryptocurrency reserve." This move is likely aimed at strengthening the US economy and reducing reliance on traditional financial institutions.

The creation of a US crypto reserve could be a response to the growing global adoption of digital assets, particularly China's development of a digital yuan. Such a move could further fuel demand for crypto assets, as building a national digital asset reserve would require significant investments in infrastructure and regulation.

Technical outlook for Bitcoin (BTC/USD)

Buyers are now targeting $93,600, which would pave the way for $95,700, followed closely by $98,000. The ultimate bullish target remains at $100,000, a breakout above which would confirm a return to the medium-term bull market. In case of a decline, buyers are expected at $91,300. A break below this level could push BTC further down toward $89,300, with the final downside target at $86,900.

Technical outlook for Ethereum (ETH/USD)

A strong break above $2,467 opens the door for a move toward $2,522. The ultimate bullish target remains at $2,581, a breakout above which would signal a return to the medium-term bull market. If ETH declines, buyers are expected at $2,384. A move below this level could push ETH down toward $2,299, with the final downside target at $2,202.