Bitcoin Soars Towards $110,000 As Reserve Rumors Heat Up

Bitcoin has surged to a new all-time high of $109,558 during early Asian trading hours, aligning with President Donald Trumps inauguration day. Market observers point to the heightened possibility that Trump might establish a Strategic Bitcoin Reserve (SBR) through an executive orderone of possibly 100 he could sign immediately upon taking office.

Is A Strategic Bitcoin Reserve Coming?

Talk of a US Bitcoin reserve under Trump has circulated for months, but speculation intensified when Polymarket, a crypto-based prediction platform, showed a sudden spike in the odds of such a reserve forming within Trumps first 100 days. The odds, which hit 59%, quickly preceded Bitcoins pump to its fresh peak.

In the past, Trump campaigned on potentially transferring all seized BTC by law enforcement into a government-held reserve. Although there has been no official confirmation, rumors that a formal order could be signed as early as Inauguration Day ignited price momentum.

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 talking with President Donald Trump this morning. Wyoming is ready for Inauguration Day tomorrow!

Senator Cynthia Lummis, known for her pro-Bitcoin stance, reinforced the chatter around a government-led BTC initiative. In a Jan. 17 post on X, she stated: Working hard to get the Strategic Bitcoin Reserve and comprehensive digital asset legislation across the finish line. Thanks for stopping by @jespow, @arjunsethi, @DavidLRipley !

Lummis own legislative proposal, dubbed the Bitcoin Bill, famously proposes to purchase 1 million Bitcoin.MicroStrategy Chairman Michael Saylor also attended meetings with the Trump administrations cabinet. He shared a photo on X of himself alongside Robert F. Kennedy Jr. and Jared Kushner, captioned: The Future is right

Meanwhile, Eric Trump posted a picture with Saylor and Crypto Czar David Sacks, commenting: To the moon! #Bitcoin @WorldLibertyFi @saylor @DavidSacks

Further underscoring the White Houses apparent openness to Bitcoin, Fred Thiel, Chairman and CEO of MARA Holdings (NASDAQ:MARA)one of Americas largest Bitcoin mining companieswas reportedly seated with the incoming US Secretary of Defense at the Vice Presidents reception on Saturday night.

MacroScope (@MacroScope17), a prominent market analyst, noted on X: Keep in mind that the reports and photos were seeing of Trump and his incoming cabinet engaging with BTC advocates (Scott Bessent at the crypto ball etc) are just the tip of whats happening. Expecting lots of headlines to hit in 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 Trumps pro-Bitcoin platform, referred to Trumps recent foray into a personal memecoin TRUMP as not my cup of tea, but emphasized gratitude for Trumps pro-Bitcoin stance via X today.

I will continue to do whatever I can to support the President and his familys embrace of Bitcoin and provide honest counsel when called upon. America will be a Bitcoin and Crypto Superpower and the winning has only just begun. When a user asked Bailey if certain major crypto-friendly actionssuch as freeing Ross Ulbricht, confirming a stockpile by executive order, and co-sponsoring Sen. Lummis SBR billwould make up for the TRUMP memecoin controversy, Bailey responded: all those things will happen and more

Charles Edwards, CEO of Capriole Investments, observed that Bitcoins rapid move lower followed by a swift rebound to new highs could indicate further gains. Trust the second move, Edwards remarked, emphasizing that when markets move aggressively in one direction, and reverse it all shortly after, the second move has a higher probability of being the real move that sets the new trend.

He added that after a good old fashioned short squeeze, investors realized the overwhelming positivity of the rumored developmentsranging from higher odds of a BSR to the onboarding of the MAGA army into crypto. Still, Edwards acknowledged that anything can happen in such a volatile market environment.

At press time, BTC traded at $108,182.

Text source: NewsBTC

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