BTC Pushing Higher
Bitcoin fever is returning to markets ahead of Trumps inauguration with speculation rising over the prospect of a Bitcoin reserve. Much has been made in recent months over Trump’s pledged support for the crypto sector and what that might look like when he takes office. At the very least, the market is expecting a much more relaxed regulatory environment and wider mainstream access to crypto markets. However, chatter around a potential US strategic Bitcoin reserve appears to be the most market moving element.
US Strategic Bitcoin Reserve
The recent proposal from US republican senator Synthia Lumiss for a US BTC STR which would acquire 200,000 BTC per year over a 5-year period, is the first look at what that STR might look like. While it isn’t yet clear how much support there is for such a reserve and whether Trump could pass it through Congress, pressure looks to be building and traders are sensing the potential for a significant rally in crypto markets if Trump pursues such a reserve early on in his presidency.
Volatility Risks
Looking ahead, BTC looks likely to rally further into next week where volatility risks will be seen at extreme levels as crypto bulls look for early support from Trump. If Trump makes the right noise next week, this should help drive the crypto rally further with speculative buying likely to ramp up materially.
Technical Views
BTC
The rally in BTC has seen the market breaking out above the 100,195 level and above the bear channel highs. Marking a potential bull flag break, the current move puts focus back on a test of the 107,855 level in coming sessions with bulls looking for a breakout to fresh highs. Below 100,195, 91,750 will be next support to watch.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.