- Bitcoin jumps 8% as the U.S. confirms BTC, ETH, XRP, SOL, and ADA in its Strategic Crypto Reserve.
- China’s CES100 falls amid U.S. tariff fears, adding to market uncertainty.
- DeepSeek AI surge sparks U.S. tech sell-offs, previously dragging Bitcoin down 5%.
Bitcoin is up by 8% as the U.S. government doubled down on its proposed Strategic Crypto Reserve (SCR).
President Donald Trump’s social media post confirmed Bitcoin, Ethereum, XRP, Solana, and Cardano will be part of a new reserve. This reserve is intended to secure the networks that will support future digital dollar transactions.
Trump’s Crypto Reserve Announcement Boosts Bitcoin
Trump’s statement established the need to secure blockchain infrastructure, especially for stablecoins that could manage global financial flows. The move indicates growing government interest in crypto’s role within national and international financial systems.
However, while the announcement created optimism in the crypto market, a more cautious mood took hold in the Chinese stock market due to US tariffs.
Related: Donald Trump’s Shift from Bitcoin Reserve to a ‘Broader’ Crypto Plan Sparks Debate
China Stock Market Declines as Tariff Deadline Approaches
The Chinese stock market, shown by the CES100 index, showed a noticeable decline for much of the trading day.
This downturn happens before the March 4 deadline for the extra 10% tariff on Chinese imports set by US President Donald Trump..
In China, the market began with an initial increase, reaching its highest point around 08:30. However, this was followed by a steady decrease, hitting its lowest point around noon. Although there was some recovery towards the end of the trading day, the index ultimately closed lower than its peak .
China’s AI Threat to Bitcoin
The growing correlation between China’s stock market and the crypto sector is worth noting. This is especially true given the rapid growth of China’s AI sector, which continues to cause uncertainty for global tech valuations. This is highlighted by DeepSeek AI, the Chinese AI model, becoming the top-ranked app on Apple’ store.
The app quickly gained prominence, built on just a $10 million budget compared to ChatGPT’s $157 billion valuation, and has raised concerns over U.S. tech stocks being overvalued.
This concern eventually led to large sell-offs in U.S. tech giants like NVIDIA and Meta, which extended to crypto markets in January. Because of this, Bitcoin briefly fell by 5%, but altcoins fell even more.
Related: Is Bitcoin Crashing? Experts Can’t Agree on What’s Next
Despite short-term volatility, Bitcoin’s inclusion in the Strategic Crypto Reserve in the US suggests long-term institutional support. This could solidify its role as digital gold in a changing financial world.
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