Bitcoin's Resurgence Fueled by Trump's Strategic Reserve Proposal

Bitcoin soared over 20% following a proposal by U.S. President Donald Trump to establish a crypto strategic reserve. The creation of this reserve, including various digital currencies, spurred optimism, leading to a significant rally. While prices surged, concerns about potential funding sources were raised.

In a remarkable turn of events, Bitcoin surged more than 20% on Monday, catalyzed by U.S. President Donald Trump's latest strategic reserve proposal which includes an array of cryptocurrencies. This proposal, sought to create a stockpile inclusive of digital currencies such as Bitcoin, Ethereum, XRP, Solana, and Cardano, set the crypto market ablaze.

The announcement was made via a post on Truth Social, wherein Trump revealed that the core of this strategic reserve would be Bitcoin and Ethereum. This drove the world's largest cryptocurrency to jump about 20% from its November lows, reversing a series of setbacks caused by regulatory uncertainties.

Despite the positive momentum in crypto prices, analysts warn of potential pitfalls regarding funding sources for this reserve. Speculation surrounds whether the assets will be procured through taxpayer money or from cryptocurrencies seized through law enforcement, fueling debates on the implications for market dynamics.

(With inputs from agencies.)