Explore our expert analysis here on the SEC’s next move and its implications for XRP’s future.
Bitcoin Under Pressure as Trump Stays Silent on Strategic Reserve Asset
Meanwhile, bitcoin (BTC) hit the reverse on Wednesday amid a lack of crypto-related US Presidential executive orders. Despite a wave of executive orders, President Trump remained silent on making BTC a national priority and repealing Joe Biden’s veto of the bipartisan vote to withdraw the SEC’s Staff Accounting Bulletin 121 (SAB 121).
BTC climbed to a record high of $109,312 on Inauguration Day in anticipation of becoming a US Strategic Bitcoin Reserve (SBR).
Anthony Scaramucci recently said the Trump administration could imminently purchase 500,000 BTC, highlighting that Senate Banking Committee Chair Tim Scott and US Treasury Secretary Scott Bessent want it to happen. However, the Trump administration will need Congress, the Federal Reserve, US Treasury Department to approve BTC as a strategic reserve asset.
US BTC-spot ETF market flows reflected investor optimism and disappointment in recent sessions. On Tuesday, January 21, the US BTC-spot ETF market registered net inflows of $802.6 million, extending its inflow streak to four sessions. However, the US BTC-spot ETF market faces a potential shift in sentiment, potentially pressing BTC.
According to Farside Investors, there were outflows of $95.6 million on Wednesday, January 22, excluding flow data for BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), and several others.
Bitcoin Price Outlook
On Wednesday, January 22, BTC dropped by 2.21%, partially reversing Tuesday’s 3.56% rally to close at $103,716. Significantly, BTC closed above the crucial $100k level for the sixth consecutive day. The hold above $100k suggests investors remain optimistic about a US SBR. However, selling pressure could build if investors become skeptical about BTC becoming a strategic reserve asset.
BTC’s price trends hinge on Trump’s executive orders, SBR developments, and US BTC-spot ETF flows.
An executive order withdrawing SAB 121, 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.
