Explore our expert analysis here on the SEC’s next move and its implications for XRP’s future.
Bitcoin Hovers Amid a Flurry of Crypto-Linked Activity on Capitol Hill
Meanwhile, bitcoin (BTC) had a choppier session on January 23, moving in a $5k range. Regulatory shifts and Capitol Hill activity influenced market sentiment.
SEC Commissioner Hester Peirce announced the rescission of SAB 121, stating,
“Bye, bye SAB 121! It’s not been fun.”
The rescinding could boost BTC and broader crypto market demand. Staff Accounting Bulletin 121 (SAB 121) is an SEC requirement for companies, including banks, to hold crypto assets on their balance sheets even if they hold the cryptos under customer custody. The regulation makes it expensive for banks to hold crypto under custody for clients, limiting crypto services and BTC demand.
Meanwhile, discussions about the Strategic Bitcoin Reserve (SBR) drew interest. Bloomberg Intelligence ETF Analyst James Seyffart commented on President Trump’s BTC campaign pledge, stating,
“Trump was very particular even as far back as this summer at the Bitcoin conference to say “Stockpile” and not “Reserve”. Time will tell!”
Amicus Curiae attorney John E. Deaton remarked,
“I’ve been saying for sometime: What’s your definition of a SBR? President Trump, via EO, can order that all seized BTC (or any other seized digital asset for that matter) be held in escrow and not sold. If you call that a SBR, then I’m confident we get one. If by SBR, you mean the USG buying BTC, it will take an act of Congress, like the Senator Cynthia Lummis Bill.”
Senator Lummis introduced the Bitcoin Act in late 2024, proposing the US government acquire 1 million BTC over five years, with a mandatory holding period of 20 years.
While an executive order making the US government a BTC HODLER is bullish, an SBR would impact the BTC’s supply-demand balance more.
Bitcoin Price Outlook
On Thursday, January 23, BTC gained 0.28%, partially reversing Wednesday’s 2.21% loss, closing at $104,004. Significantly, BTC closed above the crucial $100k level for the seventh consecutive day. The continued hold above $100k signals investors’ confidence in Congress approving a US SBR.
BTC’s price trends hinge on Trump’s executive orders, SBR developments, and US BTC-spot ETF flows.
US BTC-spot ETF inflows and progress toward a US SBR could drive BTC beyond Monday’s record high of $109,312. Conversely, fading bets on an SBR and BTC-spot ETF outflows could drag BTC toward $95k.
