Many cryptocurrencies spiked over the weekend. Industry giant Bitcoin (Cryptography: BTC) It won 13% from Monday Friday market at 9:15am (ET) at nearly 13%. Veteran Ethereum in Smart Contracts (Encryption: ETH) I posted a gain of 15.4% over the same period.
The crypto market never sleeps and is open to trade every day, all the time, but you can reaffirm the movement of the major coins against more traditional exchange sales funds (ETFs). iShares Bitcoin Trust (NASDAQ: IBIT) Topped with 10.7% profit on Monday with iShares Ethereum Trust (Code: Eta) Stopped at a maximum gain of 7%.
They all retreated from these double-digit price increases. As of 11:35am ETFs are up 6.7%, while Ethereum-based cousins show a 2.7% return over the weekend.
These jumps were inspired by potentially positive news from the White House. In a social media post on Sunday, President Donald Trump doubled his promise to hold Ethereum, Bitcoin and at least three crypto coins, creating a strategic preparation for cryptocurrency.
This is not a new idea for Ethereum and Bitcoin investors who have seen the Trump administration explore the idea of strategic reserve since last year’s campaign. But things are getting more specific and it’s always good to see new details about how this plan works.
To that end, Trump foresaw a declaration of a new executive order designed to set up gold-like reserves for crypto assets. The digital assets working group he launched in January will be directed to “move forward” in the design and implementation of digital currency reserves.
Posts have come at a stressful time in the crypto sector. Bitcoin has not returned a week ago after prices rose on Monday morning. Ethereum prices fell 11% over the same period.
Digital asset investors retreated from their commitments to Ethereum and Bitcoin for two reasons last week.
Trump’s trade tariffs began to begin, adding uncertainty to the global economy. It is bad news for crypto and amplifies the risk of investing in already high-risk asset classes.
At the same time, the hacker group stole $1.4 billion in Ethereum from a respected crypto broker. Hack relies on sophisticated social engineering attacks against cloud-based digital wallet services, and therefore did not reveal the flaws in Ethereum itself. Still, the billion-dollar robbery rattles off investors’ nerves in all sectors, especially in volatile cryptocurrency markets.
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So crypto investors were happy to see some good news after a lot of negative developments. Trump’s code-friendly posts were seen as a welcome reminder that good things should be happening in the near future.
Trump and his digital assets working group have yet to set solid goals for strategic preparation. Compare this idea with existing strategic gold reserves.
The Treasury holds approximately $682 billion in physical gold reserves in the global gold market worth around $15 trillion. It would be about 4.5% of all gold in the world.
Buying 4.5% of the total cryptocurrency market is today’s investment of $132 billion, with a full market value of $2.97 trillion. It becomes a significant interest, but it pales next to the potential of institutional investors who will establish their position in Bitcoin or Ethereum. This is a $70 trillion global market with a very heavy presence in America.
If these financial heavyweights follow the recommendations of sector leader BlackRock (NYSE: BLK)recently proposed to introduce 2% of the portfolio recommendations into encryption.
So, Crypto Investors is still looking for details on what the proposed strategic Crypto Reserve will look like. It may not be the biggest game changer of all. Still, Crypto investors are ready to accept the good news with open arms, and Trump’s social media posts have pushed all the right buttons up.
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Anders Bylund has positions in Bitcoin and Ethereum. Motley Fools have been working and recommending Bitcoin and Ethereum. Motley Fools have a disclosure policy.
Why Bitcoin and Ethereum are surged today was originally published by The Motley Fool
