Cryptocurrency markets emerged following US President Donald Trump’s announcement of a potential crypto strategic strategic, but analysts warned that the rally could be short -lived.
On March 2, Trump said his working group in digital assets became directed to include three altcoins – XRP (XRP), Solana (Sol) and Ada by Cardano (Ada) – In the US crypto reserve, cointelegraph reported. The reserve is “clearly” also includes bitcoin (Btc) and ether (Eth), Trump added to another Post In fact social.
The announcement has been able to trigger a market throughout the market, with the global crypto market cap rising about 7% to $ 3.04 trillion, as Bitcoin violates a $ 95,000 psychological score after a 7.7% intraday rally.
Source: Donald J. Trump
However, the rally may be temporary due to the lengthy approval process required to establish a US crypto reserve, according to Aurelie Bartherre, chief research analyst at Blockchain Analytics Firm Nansen:
“I think developing a reserve by buying new tokens is a complex process that will need Congress’ vote, so it will take time. I’m a bit careful about maintaining the move now.”
Some analysts expect a approaching bottom of the market After the active addresses of Bitcoin reached a near-three-month height on February 28, signed that the market was at a “important turning point” that could signal a “capitulation moment,” according to the Crypto intelligence platform intotheblock
Related: Related: Solana Down 45% since the launch of the Trump’s token as Memecoins Divert Liquidity
Analysts a short -term volatility
Ada, Sol and XRP have outperformed Trump’s announcement market about their integration in the US Strategic Reserve.
Ada, Sol, XRP, 1-day chart. Source: Cointelegraph
However, the upside of the crypto market may be limited and invite significant volatility to short-term, according to Nicolai Sondergaard, Nansen research analyst.
Analyst told Cointelegraph:
“As Aurelie mentioned that it is unlikely to be easy and I hope the volatility in these tokens is now especially (seen in ADA almost $ 1.17 and now sitting at $ 0.94).”
“Regardless of how long these gains will last, it’s temporarily positive for the market, but the question for the future is if there is any. Otherwise, this is probably a negative news point for crypto,” he added.
Related: Ronaldinho launched the token with a 35% insider supply, which hit the $ 397M Market Cap
However, crypto investors continue to look forward to other industry -specific development as potential catalysts, including First White House Crypto Summitthat the Trump is set to play in March. 7.
While there are no further details about the summit agenda, the regulation and law of Stablecoin related to a strategic crypto reserve leads to US regulation discussions.
https://www.youtube.com/watch?v=AV7xioy4zvc
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