Bitcoin and four other larger cryptocurrencies reversed a recent slump after Donald Trump announced an executive order to create a "crypto strategic reserve".
The executive order on digital assets directed will "move forward on a Crypto Strategic Reserve", the US president said on his Truth Social social media platform on Sunday.
As well as bitcoin (BTC) and ether (ETH), Trump named XRP, solana (SOL) and cardano (ADA) for inclusion in the reserve.
Trump said he wanted to "make sure the US is the crypto capital of the world".
Bitcoin has climbed 6.7% to $92,216 over the past 24 hours, back to where it was early in February after dropping back from highs seen in the early weeks of the new US presidency.
Ethereum gained 7.2% over 24 hours, with XRP and Solana surging 17% and 12%, while cardano rocketed 51%.
Trump's announcement comes ahead of Friday’s Crypto Summit at the White House.
Market analyst Kathleen Brooks at XTB said: "We expect a broad-based recovery in crypto, with the $100,000 level an obvious target for bitcoin.
"There has been a surge in activity in the options market, with a number of bullish bets being placed on further gains for crypto, now that President Trump has shown his loyalty to the currency.
"Ironically, a currency that was designed to be isolated from government interference and decentralized, is now reliant on the US government for its fortunes," she added.
In January, Trump issued an executive order titled 'Strengthening American leadership in digital financial technology' aimed at supporting “the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy".
He also established a new Crypto Task Force and nominated cryptocurrency advocate Paul Atkins as the new head of the US Securities and Exchange Commission (SEC), the financial industry regulator.
Analysts at Citi said crypto markets had retreated recently "due to a confluence of factors including meme-coin disappointment, risk asset correlations, an exchange hack, and post-election fatigue", while outflows from Bitcoin ETFs had contrasted with inflows to gold, "suggesting 'digital gold' is not that close a substitute to the analogue version".
While crypto news flow has mostly been positive -- apart from the Bybit exchange hack -- prices have sold off by around 20% from peak, which traditionally marks bear markets in equities
"We observe that bear markets in crypto tend to be either short and sharp or long and deep, with 30% the floor outside of the much longer 'crypto winters'," the Citi analysts noted.
"We think there are reasons to be cheerful long term, with regulatory clarity likely delivering opportunities for innovation, building trust, and improving the user experience. We continue to focus on user activity, adoption metrics, and use-cases like stablecoins and tokenization as the future of crypto."