Financial Insights That Matter
Explore our expert analysis here on the SEC’s next move and its implications for XRP’s future.
Bitcoin Hovers as Pro-Crypto Administration Countdown Clock Hits Seven
Meanwhile, bitcoin (BTC) continues to hover around the $95k handle after last week’s drop below $100k. On January 20, President-elect Donald Trump’s inauguration will open the Oval Office door to the first pro-crypto administration.
Ahead of the Inauguration Day, progress toward a US Strategic Bitcoin Reserve (SBR) has fuelled expectations for a marked shift in BTC’s supply-demand balance. In late 2024, crypto advocate Senator Cynthia Lummis introduced the Bitcoin Act, proposing the US government purchase one million BTC over five years to tackle the national debt crisis.
In a recent interview, Anthony Scaramucci said the US government might acquire 500k BTC, adding to its pre-existing 198,109 BTC stockpile. Scaramucci noted that Trump, Senate Banking Committee Chair Tim Scott, and US Treasury Secretary Scott Bessent want it to happen.
Since the interview, the Senate Banking Committee announced plans to launch a digital assets subcommittee. Senator Lummis is in the running to chair the subcommittee.
Crypto experts have offered bullish BTC projections if the BTC becomes a US strategic reserve asset.
Amicus Curiae attorney John E. Deaton recently stated,
“If the U.S. Government (USG) passes Senator Lummis’ Bill and begins buying BTC, it will no doubt cause other nations to follow suit, just like with gold. It could literally create Nation State FOMO, and if that occurs, $1M per BTC happens a lot faster than people think.”
Bitcoin Price Outlook
On Sunday, January 12, BTC gained 0.05%, partially reversing Saturday’s 0.29% loss to close at $94,585.
BTC’s near-term trends hinge on US inflation data, BTC-spot ETF market flow trends, and Strategic Bitcoin Reserve (SBR) developments. Hotter-than-expected US inflation numbers on January 15 could trigger spot ETF outflows, potentially impacting BTC demand. However, progress toward a US SBR would likely counter the effects of a hawkish Fed rate path, supporting new highs.
Meanwhile, BTC could drop below the $90,742 support level if an SBR faced bipartisan resistance.
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