Cryptocurrency Surges on White House Comment! The Market is Alive Again

Why did the cryptocurrency market rebound? The White House's expectation of 'strategic Bitcoin reserves' ignited it.

▲ Donald Trump, Bitcoin (BTC), Cryptocurrency/AI Generated Image ©

The US government's promotion of strategic Bitcoin reserves has emerged as a key factor behind the cryptocurrency market's rebound in just one day. Analysts suggest that investor sentiment has improved due to the resolution of excessive leverage in the derivatives market and Ethereum's relative strength.

According to CoinMarketCap, a cryptocurrency market data aggregator, on July 7 (local time), the total cryptocurrency market capitalization rose by 1.49% over 24 hours to reach $2.21 trillion. The market showed a significant correlation with the macroeconomic environment, exhibiting a 73% correlation with the S&P500, which represents the US stock market, and a 69% correlation with gold during the same period.

The biggest reason for the market's surge was the official confirmation from the White House that it is specifically pursuing strategic Bitcoin (BTC) reserves. According to a working group report dated July 30, 2025, introduced by CoinMarketCap, the US government is reviewing treating Bitcoin as a long-term national strategic asset. This was evaluated as a factor that lowers regulatory uncertainty and increases investment confidence in Bitcoin as a store of value. The market is paying attention to concrete plans such as the US Treasury's custody system and acquisition strategy.

In the derivatives market, the removal of excessive leverage further boosted the upward trend. Bitcoin's 24-hour liquidation volume surged by 693% to $170.75 million, and funding rates turned positive, indicating that supply and demand have rebalanced. Additionally, the market's smooth absorption of MicroStrategy's $225 million worth of Bitcoin sales was presented as a positive sign. Concurrently, Ethereum showed its strongest weekly performance against Bitcoin in over a year, suggesting the possibility of market capital shifting to the Ethereum ecosystem.

In the short term, maintaining the total cryptocurrency market capitalization at around $2.21 trillion was presented as a critical turning point. CoinMarketCap evaluated this range as the key Fibonacci 23.6% support level, and analyzed that the upcoming US Consumer Price Index (CPI) announcement and the inflow of funds into Bitcoin spot ETFs will be key variables determining the next upward trend. If the CPI comes out more stable than expected, the possibility of further gains could increase, but if high inflation is confirmed, macroeconomic burdens could again pressure the market.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*