As of 9:55 am WAT, Bitcoin rose 3.71% to $87,480, while Ethereum gained 4.05%, trading at $2,093, buoyed by positive investor sentiment despite concerns over upcoming U.S. tariffs and key economic data releases later this week.

The global cryptocurrency market capitalisation increased by 2.94% in the past 24 hours, reaching $2.84 trillion.

Other notable performers included XRP, Cardano, and Dogecoin, which posted gains of 3%, 2%, and 3.8%, respectively. Chainlink, Avalanche, Hedera, and Stellar recorded growth ranging from 3% to 10%.

“Bitcoin is holding above $86,000, registering a 3% gain today. The key resistance level to watch is $86,700; a breakout could pave the way for $90,000,” said Vikram Subburaj, CEO of Giottus.

Bitcoin’s market capitalisation surged to $1.727 trillion, with dominance rising to 60.73%. Its 24-hour trading volume soared by 93% to $18.2 billion, while stablecoin transactions accounted for 94.74% of total crypto trading, reaching $57.58 billion, according to CoinMarketCap.

Solana (SOL) emerged as a standout performer, surging over 7% in the past 24 hours to trade above $139.

The rally was fueled by reports suggesting that President Trump’s April 2 tariffs may be more targeted than initially feared, easing market concerns.

Solana’s momentum aligns with unprecedented acceptance rates. DeFiLlama reported that Solana’s total value locked (TVL) reached 54.87 million SOL, its highest level since June 2022. Ali Charts revealed that a record 11.09 million addresses now hold SOL, underscoring growing adoption.

Additionally, over $72 million in assets have recently been bridged from Ethereum to Solana. Solana’s weekly active addresses (17 million) significantly exceed Ethereum’s (1.8 million), while Binance’s rising SOL wallet balances point to fresh accumulation following recent selling activity.

Institutional acceptance of Solana continues to grow, with Volatility Shares launching two Solana futures ETFs (SOLZ and SOLT) on Nasdaq on March 21.

Major asset managers, including Franklin Templeton and VanEck, have also applied for spot Solana ETFs, signalling increased interest in the cryptocurrency.

BitMEX co-founder Arthur Hayes expressed optimism about Bitcoin’s trajectory, stating, “The Fed’s policy orientation could help Bitcoin achieve $110k before it retests $76.5k.”

The news, shared via Trump’s social media platform, led to renewed investor confidence, reversing recent losses in the crypto market.

Bitcoin jumped over 20% from its Friday lows, climbing from $78,273 to approximately $91,605. Ether also recorded a 20% surge, reaching $2,351. Other cryptocurrencies, including XRP, Solana, and Cardano, experienced even higher gains, with Cardano rising by 60%.

Trump’s executive order from January had initially pointed to the creation of a digital asset reserve, but the specific tokens to be included were undisclosed until his latest announcement. “Bitcoin and ether will be at the heart of this reserve,” Trump stated on Truth Social. 

His post appears to have reignited market positivity, particularly among investors who had been disappointed by the lack of regulatory changes following his election victory.

Market analysts say Trump’s endorsement has injected new growth into the crypto space. Matt Simpson, senior market analyst at City Index, remarked, “Trump just gave the pump that crypto traders have been holding out for. Any faith that was lost last week appears to have been restored.” He suggested that unless another wave of risk-off selling emerges, new price highs could be reached.

There is speculation that this bullish trend might continue ahead of the White House Crypto Summit scheduled for Friday. Chris Weston, head of research at Pepperstone, noted that while optimism is driving the rally, market trends could still influence sentiment.

Despite the surge, there are still issues about the potential structure and funding of the proposed reserve. Tony Sycamore, an analyst at IG Markets, raised questions about whether the reserve would be financed by taxpayers or consist of assets seized in law enforcement actions. 

He pointed out that if the latter is the case, “it simply represents a transfer between accounts rather than new buying entering the market.”

Bitcoin has had a volatile year, dropping over 17% in February—the largest monthly decline since June 2022—after briefly surpassing $105,000 in early January. However, expectations that the Trump administration would take a more crypto-friendly stance had initially fueled its rise post-election.

Some experts are sceptical about the long-term implications of government involvement in a space that was originally built on decentralisation. Kathleen Brooks, research director at XTB, underlined the irony, saying, “A currency that was designed to be isolated from government interference and decentralised is now reliant on the U.S. government for its fortunes.”

With Trump engaging with the crypto industry, his administration has already rolled back regulations initiated under President Joe Biden.