Bitcoin (BTC) Price Movements Experience Sharp Fluctuations Following Speculation About US Strategic Reserve Announcement

Bitcoin (BTC) experienced sharp price movements on Jan. 23, reaching $106K before retreating. The surge followed speculation about the United States announcing a strategic Bitcoin reserve.

Bitcoin (BTC) price movements took center stage on Jan. 23, with the cryptocurrency surging to $106K before retracing. The sharp price action was fueled by speculation about the United States announcing a strategic Bitcoin reserve.

As the news hit the markets, trading activity intensified with investors reacting to the possibility of such a development. The speculation was sparked by Wyoming Senator Cynthia Lummis, who took to X to announce an upcoming announcement regarding the crypto market.

A known advocate for Bitcoin and having proposed the Bitcoin reserve bill, Lummis’ latest post read:

However, she refrained from providing any further details, including the specific timezone for the announcement.

Lummis’ Posts Spark Market Reactions

Following Lummis’ cryptic updates, market analysts closely monitored the developments. According to FOX Business journalist Eleanor Terrett, Lummis is set to become the Chair of the US House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion, pending a vote.

Coinciding with these developments, President Donald Trump was scheduled to speak at 11 am Eastern Time at the World Economic Forum in Davos. Speculation arose that the speech might include mentions of Bitcoin or cryptocurrencies. However, the absence of any crypto-related remarks led to a price pullback, dampening the expectations.

Bitcoin’s rapid surge and subsequent retracement resulted in substantial market liquidations. Data from CoinGlass showed nearly $20 million in BTC short positions were liquidated within an hour. Traders made quick adjustments as price volatility created massive movement in the market.

Meanwhile, prediction platforms like Polymarket indicated a 40% chance of the U.S. Bitcoin reserve being announced within Trump’s first 100 days in office. Despite the heightened speculation, there were no official statements confirming the rumors.

Hence, the market continues to react cautiously to any developments related to Lummis and potential Bitcoin-related policy announcements.

As traders await further clarification, Bitcoin’s price remains a focal point for rapid adjustments and speculation.