YEREVAN (CoinChapter.com) — 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. Trading activity intensified as investors reacted to the news.
BTCUSD Chart Surge. Source: TradingViewThe speculation was triggered by Wyoming Senator Cynthia Lummis, who posted on X about an upcoming announcement related to the crypto market. Known for her advocacy of Bitcoin and her proposed Bitcoin reserve bill, Lummis wrote,
Cynthia Lummis Tweets. Source: XHowever, she provided no further details, including the specific timezone for the announcement.
Lummis’ Posts Spark Market Reactions
Market analysts closely monitored the developments after Lummis’ cryptic updates. According to FOX Business journalist Eleanor Terrett, Lummis could assume the role of Chair of the US House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion, pending a vote.
Senate Banking Vote Update. Source: XCoinciding with these developments, President Donald Trump was scheduled to speak at 11 am Eastern Time at the World Economic Forum in Davos. Speculation mounted that the speech might mention Bitcoin or cryptocurrencies. However, the absence of crypto-related remarks led to a price pullback, dampening expectations.
Sharp Liquidations Follow Bitcoin’s Price Volatility
Bitcoin’s rapid surge and subsequent retracement caused significant market liquidations. Data from CoinGlass revealed nearly $20 million in BTC short positions were liquidated within an hour. Traders scrambled to adjust positions as price volatility created substantial movement in the market.
BTC Reaction Timeline. Source: XMeanwhile, prediction platforms like Polymarket noted a 40% likelihood of the U.S. Bitcoin reserve being announced within Trump’s first 100 days in office. Despite the heightened speculation, no official statements confirmed the rumors.
Trump Bitcoin Reserve Poll. Source: PolymarketThe market, therefore, continues to react cautiously to any developments tied to Lummis and potential Bitcoin-related policy announcements.
Meanwhile, as traders eagerly await clarification, Bitcoin’s price continues to serve as a focal point for speculation and rapid adjustments.
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