TLDR

• Bitcoin surged after Trump appeared to confirm a US strategic crypto reserve, creating an $85K CME futures gap
• President Trump mentioned both Bitcoin and Ether in his announcement about a crypto reserve
• The White House is hosting its first crypto summit on March 7, led by Trump and crypto czar David Sacks
• Key market indicators are showing recovery with Bitcoin rebounding up to 20% after recent lows
• CME Bitcoin futures recorded a $10,350 price gap, the largest in the exchange’s history

Bitcoin experienced a sharp rally after President Donald Trump appeared to confirm plans for a US strategic crypto reserve. The news came just days before the White House is set to host its first crypto summit on March 7.

Trump mentioned both Bitcoin and Ether in his announcement. He stated that he “loves” both tokens, which helped clear initial doubts about which cryptocurrencies might be included in the reserve.

The price reaction was swift and dramatic. Bitcoin price action abandoned its recent slump and delivered what some traders called a “$10,000 daily green candle” on some markets.

This sudden price movement created what traders call a CME gap. According to market data, Bitcoin futures on the Chicago Mercantile Exchange closed at $84,650 and reopened at $95,000.

This $10,350 gap is now the largest CME Bitcoin futures gap in the exchange’s history. It far exceeds the previous record of around $4,000 observed in August 2024.

Traders watch these gaps carefully. Bitcoin has a history of “filling” such gaps, meaning its price often returns to these levels before continuing in either direction.

These gaps form because CME futures don’t trade on weekends. When Bitcoin’s price moves strongly during weekend trading on 24/7 crypto exchanges, it creates these price discontinuities in CME futures.

The crypto reserve announcement came from Trump on social media. It appears to be in line with his previous executive order 14178, which aimed to make the US the “Crypto Capital of the World.”

David Sacks, who serves as Washington’s crypto czar, reinforced the message. He stated that “President Trump has announced a Crypto Strategic Reserve consisting of Bitcoin and other top cryptocurrencies.”

Sacks added that Trump is “keeping his promise” and hinted at “more to come at the Summit.” The event is scheduled for March 7 and will be hosted by Trump himself.

Sentiment Shift

The news triggered what some analysts called the “biggest sentiment shift in crypto’s history.” The market added over $300 billion in value as both Bitcoin and other cryptocurrencies rose sharply.

Before this announcement, Bitcoin had been in a slump. The price had fallen to multi-month lows, with market sentiment reaching extreme fear levels of just 10/100 on the Crypto Fear & Greed Index.

After the news, that same index recovered to 33/100. While still in “fear” territory, this represents a major improvement from previous lows.

Other market indicators are also showing signs of recovery. The Coinbase premium index, which tracks price differences between US and international exchanges, is moving back toward positive territory.

This index often signals increased buyer interest from US investors. During Bitcoin’s run to all-time highs in late 2023, a positive Coinbase premium was a consistent feature.

On-chain data is also improving. The adjusted spent output profit ratio (aSOPR) has moved back above the breakeven point, showing that Bitcoin transactions are now happening at a profit on average.

Some traders remain cautious despite the good news. Many are watching key support levels around $90,000-$91,000, which have served as range lows in recent months.

Others point out that the $85,000 level might act as a “downside magnet” due to the CME gap. One trader warned this could create “one hell of a shake out” if the market retests that level.

The timing of the announcement adds another layer of complexity. This week features key US employment data releases, with initial jobless claims on March 6 and the US jobs report on March 7.

Federal Reserve Chair Jerome Powell is also scheduled to speak on March 7, the same day as the White House crypto summit. These events could add volatility to an already active market.

Some analysts warn that the crypto market may have already priced in many of Trump’s campaign promises. They question what the next catalyst for further price appreciation might be.

Others caution about placing too much faith in political announcements. One analyst warned that Trump’s style could lead to later statements that reverse market sentiment.

For now, the market is focused on the upcoming White House crypto summit. Participants hope it will provide more details about the proposed strategic reserve and other crypto-friendly policies.

The current market action has brought Bitcoin within striking distance of new all-time highs. According to some analysts, the token is now only about 16% away from setting new price records.