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bitcoin has reached a new all-time high of $109,558 during the first hours of trading in Asia, coinciding with President Donald Trump's inauguration day. Market watchers point to the increased possibility that Trump could establish a Strategic bitcoin Reserve (SBR) through an executive order, one of 100 he could sign immediately after taking office.
Is a strategic bitcoin reserve coming?
There has been talk for months of a bitcoin reserve in the United States under the Trump administration, but speculation intensified when Polymarket, a cryptocurrency-based prediction platform, showed a sudden increase in the odds of such a reserve forming within Trump's first 100 days. The odds, which reached 59%, quickly preceded bitcoin pumping to its new peak.
In the past, Trump campaigned on potentially transferring all btc seized by law enforcement to a government-controlled reserve. Although there has been no official confirmation, rumors that a formal order could be signed “as early as opening day” boosted prices.
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Notably, several influential bitcoin advocates met with the incoming administration over the past weekend, fueling SBR speculation. Senator John Barrasso wrote via x (formerly twitter) on Sunday: “Senator Lummis and I had a great time speaking with President Donald Trump this morning. Wyoming is ready for opening day tomorrow!
Senator Cynthia Lummis, known for her pro-bitcoin stance, reinforced rumors about a government-led btc initiative. In a January 17 post on x, he stated: “Working hard to get the bitcoin Strategic Reserve and comprehensive digital asset legislation over the finish line. Thanks for stopping by @jespow, @arjunsethi, @DavidLRipley!”
Lummis' own legislative proposal, called the “bitcoin Bill,” proposes purchasing 1 million bitcoin.
MicroStrategy President Michael Saylor also attended meetings with the Trump administration's cabinet. He shared an x-ray photo of himself alongside Robert F. Kennedy Jr. and Jared Kushner, with the caption: “The future is right.”
Meanwhile, Eric Trump posted a photo with Saylor and “crypto Czar” David Sacks, commenting: “To the moon! #bitcoin @WorldLibertyFi @saylor @DavidSacks”
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To further underscore the White House's apparent openness to bitcoin, Fred Thiel, chairman and CEO of MARA Holdings (NASDAQ:MARA), one of the largest bitcoin mining companies in the United States, reportedly sat down with the secretary of Incoming US defense at the vice president's reception on Saturday. evening.
MacroScope (@MacroScope17), a leading market analyst, <a target="_blank" href="https://x.com/MacroScope17/status/1881070499721007129″ target=”_blank” rel=”nofollow”>noted at Expecting many headlines to appear in the coming days, weeks and months. “Unique situation in the history of financial markets.”
David Bailey, CEO of btc Inc, who played a notable role in encouraging then-candidate Trump's pro-bitcoin platform, referred to Trump's recent foray into a personal TRUMP memecoin as “not my cup of tea,” but <a target="_blank" href="https://x.com/DavidFBailey/status/1881249589329592336″ target=”_blank” rel=”nofollow”>emphasized gratitude for Trump's pro-bitcoin stance via x today.
“I will continue to do everything I can to support the adoption of bitcoin by the president and his family and will provide honest advice when necessary. “The United States will be a bitcoin and crypto superpower and the victory has only just begun.” When a user asked Bailey if certain major pro-cryptocurrency actions, such as freeing Ross Ulbricht, confirming a stockpile by executive order, and co-sponsoring Senator Lummis' SBR bill, would offset TRUMP's memecoin controversy, Bailey responded : “all those things will happen and more”
Charles Edwards, CEO of Capriole Investments, <a target="_blank" href="https://x.com/caprioleio/status/1881290851055489089″ target=”_blank” rel=”nofollow”>observed that bitcoin's rapid downward move followed by a quick rebound to new highs could signal further gains. “Trust the second move,” Edwards commented, emphasizing that “when markets move aggressively in one direction and reverse everything shortly thereafter, the second move has a higher probability of being the actual move that establishes the new trend.”
He added that after “a good old-fashioned squeeze,” investors realized the “overwhelming positivity” of rumored developments, ranging from “increased odds of a BSR” to “the addition of the MAGA army to cryptocurrencies.” “. Still, Edwards acknowledged that “anything can happen” in such a volatile market environment.
At press time, btc was trading at $108,182.
Featured image from YouTube, chart from TradingView.com
