Bitcoin and Cryptocurrencies Experience Sudden Surge
On March 3, 2025, Bitcoin and other cryptocurrencies witnessed a dramatic price surge. As of 8:32 AM UTC, Bitcoin soared by over 9%, Ethereum surged by more than 13%, and Cardano (ADA) skyrocketed by an astonishing 75%.
This extreme volatility left short-sellers in significant losses. According to Coinglass data, the past 24 hours saw more than 170,000 traders liquidated across cryptocurrency derivatives markets, totaling approximately $800 million in losses.
Trump Announces Crypto Reserve Assets
Late on March 2, former U.S. President Donald Trump declared that XRP, Solana (SOL), and Cardano (ADA) would be included in a proposed U.S. cryptocurrency reserve. This announcement followed an executive order to establish a digital asset task force tasked with:
- Evaluating the feasibility of a national digital asset reserve.
- Developing a clear regulatory framework for the crypto industry.
This move is widely interpreted as Trump’s response to the Biden administration’s stricter stance on crypto. The plan emphasizes three key assets—XRP, SOL, and ADA—as cornerstones of the reserve system.
Reports suggest Trump had been preparing for this since January 2025, advocating for:
- A crypto asset reserve composed of U.S.-backed tokens.
- The appointment of a pro-crypto SEC chair.
Additionally, Trump is set to host the first White House Crypto Summit on March 7, further solidifying his support for the industry.
Bitcoin’s Rollercoaster Week
The previous week saw panic selling across crypto markets:
- On February 26, Bitcoin plunged over 5% to below $84,000, down nearly 20% from its all-time high of $100,000 in late January.
- CME Bitcoin futures hit a three-month low of $82,625.
- BlackRock’s iShares Bitcoin Trust (IBIT) recorded its largest single-day outflow ($418 million), extending a seven-day streak of withdrawals.
Other major funds, including those by Fidelity, Grayscale, and ARK Invest, faced similar sell-off pressures.
Key Reasons Behind the Sell-Off
- Security Concerns: The Bybit exchange hack on February 21—where $1.5 billion in crypto was stolen—reignited fears about cryptocurrency safety.
- Macroeconomic Factors: Bitcoin’s drop aligned with declines in risk assets (e.g., tech stocks) amid shifting U.S. monetary policy expectations.
- Liquidity Crunch: Fed Chair Jerome Powell’s hints at delayed rate cuts exacerbated market pessimism, reducing inflows into crypto.
According to Ding Zhaofei, Chief Analyst at HashKey Group:
"Bitcoin’s correction mirrors the AI-driven tech stock reevaluation. With liquidity tightening, crypto markets faced compounded pressure."
FAQs
Q: Why did Bitcoin suddenly surge on March 3?
A: Trump’s crypto reserve announcement sparked bullish momentum, driving prices upward.
Q: What cryptocurrencies are included in the U.S. reserve plan?
A: XRP, Solana (SOL), and Cardano (ADA).
Q: How did the Bybit hack affect the market?
A: It intensified security fears, contributing to the broader sell-off.
Q: Will the Fed’s policies impact Bitcoin further?
A: Yes. Hawkish signals (e.g., slower rate cuts) may continue pressuring crypto liquidity.