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Bitcoin, XRP and MicroStrategy Are Soaring Higher Today
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Bitcoin (CRYPTO:BTC) slumped two weeks ago as the broader AI and tech industry slowed down. Crypto is often seen as a more volatile tech offshoot, and the crypto market’s correlation with the tech sector only increased after Bitcoin ETFs were introduced. So, BTC ended up tumbling into correction territory at around $82,000.
This dip followed a peak near $92,000 earlier in February, driven by profit-taking and tech sector jitters, with trading volume spiking as investors reassessed risk.
XRP (CRYPTO:XRP) is a trendy fintech altcoin that followed BTC downwards. MicroStrategy (NASDAQ:MSTR) is a leveraged Bitcoin play that amplifies BTC’s gains and losses. People started calling it MicroTragedy as it collapsed nearly 30% in the latter half of February.
However, all three assets are surging today.
24/7 Wall St. Key Points:
- Bitcoin made a sharp recovery after Trump proposed a crypto strategic reserve.
- This reserve is expected to include altcoins, including XRP.
- Since many see MSTR as a leveraged BTC play, it is also surging. If you’re looking for multibagger returns like those seen in the crypto industry, grab our free “The Next NVIDIA” report. It includes a software stock with 10X potential.
What Happened
President Donald Trump proposed a “Crypto Strategic Reserve,” which is expected to be unveiled during the White House Crypto Summit on Friday. Commerce Secretary Howard Lutnick confirmed that Bitcoin would hold a “unique status” within this reserve framework.
Trump’s proposal includes XRP alongside BTC. It also reportedly includes Solana (CRYPTO:SOL) and Cardano (CRYPTO:ADA).
The details about how big this crypto reserve will be and which cryptocurrencies will form it are quite sparse. Rumors suggest it could leverage the 200,000 BTC already seized by the U.S., a stash valued at over $18 billion today, though new purchases remain unconfirmed.
Still, the crypto market feeds on speculation, and this proposal brings plenty of it to the table.
What It Means for These Crypto Assets
The proposal is obviously bullish since it could align the U.S. government’s interests with those of crypto holders. The real question is whether or not Trump will try to do what El Salvador President Nayib Bukele did (in a much bigger way) by buying large amounts of crypto or if he will simply stockpile the crypto seized from criminals.
He already proposed a crypto reserve in August last year to win over crypto fans ahead of the election. But this is the first time there has been any serious talk about it materializing. A buying spree could push BTC past $100,000, analysts say, while a stockpile-only approach might cap gains, leaving XRP and MSTR vulnerable to volatility.
If this crypto reserve does not involve large crypto purchases, it is unlikely to have a long-lasting impact on either BTC, XRP, or MSTR. Conversely, an El Salvador-style crypto reserve could spark a fresh new crypto rally. Crypto fans should mark their calendars for Friday.
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