Trump's Digital Asset Endorsement Ignites $3T Market Rebound, Bitcoin Vaults 10.6%

March 2 witnessed an 10.6% leap in bitcoin's value relative to the dollar, propelled by a social media declaration from U.S. President Donald Trump about a proposed digital asset reserve

U.S. President Donald Trump's musings on a proposed digital asset reserve and a subsequent nod to bitcoin and ethereum (CRYPTO: ETH) appeared to be linked to a 10.6% surge in the flagship cryptocurrency's value over 24 hours.

What Happened: At press time, BTC traded at $94,443 reaching a high of $95,064. Trump's commentary on Sunday afternoon propelled a 11.28% surge in the sector's aggregate market capitalization to $3.12 trillion.

The former president, known for his blunt pronouncements and significant following, stated his intent to create a "strategic digital asset reserve" on Truth Social.

"We'll be forming a new and large Strategic Digital Asset Reserve in order to protect the U.S. dollar and to economically defeat and outsmart China," Trump wrote in a post. "Everyone is talking about Bitcoin and Ethereum and other valuable Cryptocurrencies- they will be the heart of the Reserve. And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum."

The post about bitcoin and ethereum came after Trump highlighted the creation of the digital asset reserve and hinted at the possibility of including ethereum competitor Solana (CRYPTO: SOL), XRP and ADA in the initiative.

"I am also placing a strong emphasis on including some of the best-performing cryptocurrencies, such as Solana, XRP, and ADA, in order to maximize the potential of the Reserve," he added.

Top Gainer (24 Hour)

* BTC: +10.6%

As Trump's words reverberated through the digital realm, they sparked a frenzy of activity. In the final hour of trading, $83.92 million in BTC short positions were liquidated as the cryptocurrency's price ascended rapidly.

The abrupt ascent of digital assets also led to a torrent of derivatives liquidations. Over the past 24 hours, $626.21 million vanished from markets, with $83.92 million in BTC short positions being wiped out in the last hour alone. Today's chaos ensnared 139,770 traders, with bearish bets being liquidated most catastrophically.

See More: President Trump Is Forming A Digital Asset Reserve, Inviting Solana, XRP, ADA

Why It Matters: Trump's commentary has previously been linked to shifts in cryptocurrency valuations. Back in 2022, his critical remarks on bitcoin and his assertion that the cryptocurrency "is not regulated and can be a scam" appeared to be related to a decline in BTC's price.

The 47th president's pronouncements not only appear to be influencing the narrative around cryptocurrency but also appear to be spurring a domino effect of frenetic trading, leaving countless participants in his wake.

This episode underscores the precarious symbiosis of political rhetoric and cryptocurrency valuations, urging vigilance in a realm where fortunes can pivot on a social media post.