The price of the King Crypto increased by roughly 10% on 2nd March as it exceeded $95K during a single trading period. A crypto strategic reserve announcement by Donald Trump resulted in the market rally of Bitcoin and other altcoins. In his statement, Trump said a crypto strategic reserve will include BTC, ETH, XRP, SOL and ADA.
Market outlook and investor sentiment quickly turned bullish after weeks of uncertainty and bearish trend. The announcement revived interest in Bitcoin call options at $100K, with open interest rising significantly. Deribit-listed options data showed an increase of 1,163 contracts worth over $100 million.
Analysts interpret this event as a potential "Trump put" that affects the operations of crypto markets. Digital assets are projected to receive aid from state authorities, similar to the Federal Reserve stock market interventions.
Trader Alex Kruger observed that Bitcoin passed through its important resistance levels during this recent market shift. He marked the points at $89,000 and $92,000 as important levels of support. According to eToro’s Josh Gilbert, the market might benefit and find bullish momentum from Trump’s participation.
The growing optimistic expectations about Bitcoin’s future price performance become apparent through the observed activity in the options market. The existing short-term volatility skew metrics show neutral findings following a period of deep negative readings. The increased purchase of call options reflects optimistic trader bets about Bitcoin's upward price movement.
Deribit’s Asia Business Development Head, Lin Chen, stated that traders often buy calls and sell puts during market rebounds. Greg Magadini from Amberdata said the $100K level will be a key focus, especially leading up to the March 7 crypto summit.
Several traders keep their fundamental market investments guarded despite current positive projections. Arthur Hayes, co-founder of Maelstrom Fund, expressed doubt that a BTC reserve could be effective before Congress provides its backing. According to Mark Hiriart from Zerocap, execution challenges and unclear regulations indicate that they may affect long-term market directions.
Investors direct their attention to the forthcoming White House Crypto Summit on March 7th to receive additional information. The financial market will respond based on the direction policymakers choose for implementing Trump's cryptocurrency strategy.