Bitcoin (BTC) Market Confused as It Fails to Rally Despite Pro-Crypto Moves by Trump Administration

Confusion looms in the cryptocurrency market as Bitcoin struggles to rally, despite major policy shifts under U.S. President Donald Trump.

As U.S. President Donald Trump makes significant policy shifts, the cryptocurrency market is abuzz with speculation and anticipation. However, despite the pro-cryptocurrency moves by the administration, Bitcoin’s price has shown a surprising lack of response.

On Jan. 24, Bitcoin’s price remained within its local range near $105,000, failing to capitalize on the optimism. The administration’s policies have sparked discussion of a national digital asset stockpile and the repeal of SEC rule SAB 121, which had restricted banks from providing crypto custody.

While some traders expected Bitcoin to breach its all-time highs, the market’s response has been tepid. Despite the pro-crypto stance, Bitcoin failed to cross $106,000, leaving traders like Scott Melker scratching their heads and describing the sentiment as “utterly confused.”

However, the speculation around a potential national Bitcoin reserve gained traction. Polymarket data suggested a 21% chance of Trump establishing such a reserve during his first 100 days in office. For a longer timeframe, the probability climbed to 61% by the end of 2025, signaling growing confidence among investors in the administration’s pro-crypto stance.

Bitcoin’s price continued to consolidate near $105,155 on Jan. 24, with analysts identifying $106,000 as a critical resistance level. A potential breakout could push prices toward $122,000, but the market has shown reluctance to commit.

On 1-day price chart Bitcoin trades within an ascending channel, supported by the Ichimoku Cloud, which offers dynamic support. Analysts like Skew see $102,000 as critical support and $106,000 as the resistance bulls must reclaim to gain momentum.

Crypto trader Crypto Tony expressed optimism about surpassing $106,000, while Binance CEO Changpeng Zhao suggested a Bitcoin reserve was “pretty much confirmed.” However, this claim remains speculative as investors await concrete announcements.

The Trump administration’s policies, such as the executive order highlighting the potential for a national digital asset stockpile, have signaled a shift in the U.S. government’s approach to cryptocurrency. These policies, ranging from the executive order to the SEC rule repeal, have drawn mixed reactions.

Bitcoin enthusiast Vijay Boyapati highlighted the magnitude of the shift, calling it a “sea change” and arguing that the market has not fully priced in the implications of a pro-Bitcoin administration.

“This is not the SEC or CFTC. This is the Trump administration. They are setting up Bitcoin to be the legal tender of the United States,” Boyapati said, referring to the administration's actions.

Senator Cynthia Lummis, now Chair of the Senate Subcommittee on Digital Assets, also emphasized the need for bipartisan legislation to establish a legal framework for digital assets, positioning Bitcoin at the center of strengthening the U.S. dollar.

“We need a legal framework for digital assets, and Bitcoin is the key to strengthening the dollar,” Lummis said.

Despite the lack of immediate price action, the administration’s policy changes could foster long-term growth in the U.S. crypto landscape.