NAIROBI (Coinchapter.com)—Confusion looms in the cryptocurrency market as Bitcoin struggles to rally, despite major policy shifts under U.S. President Donald Trump. On Jan. 24, Bitcoin’s price remained within its local range near $105,000, failing to capitalize on optimism sparked by the administration’s pro-crypto moves.
Trump’s Policies Spark National Bitcoin Reserve Debate
President Trump’s recent executive order highlighted the potential for a national digital asset stockpile, signaling a shift in the U.S. government’s approach to cryptocurrency. The administration also repealed SEC rule SAB 121, which had restricted banks from providing crypto custody. Senator Cynthia Lummis, a vocal Bitcoin supporter, celebrated the repeal, calling the rule “disastrous for the banking industry.”
Lummis applauds SEC repeal of SAB 121. Source: XHowever, the market’s reaction to these developments has been tepid. Despite the pro-crypto stance, Bitcoin failed to breach its all-time highs, remaining below $106,000. Traders, including Scott Melker, noted the market’s uncertainty. Melker described the sentiment as “utterly confused,” reflecting the lack of a decisive response.
61% chance of U.S. Bitcoin reserve by 2025. Source: PolymarketDespite this, speculative activity 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.
Will Bitcoin Break Free From Its $105K Shackles?
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.
BTC/USD 1-day price chart. Source: TradingViewOn 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.
Bitcoin tests key support near $104,700. Source: Skew/XCrypto 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.
Trump’s Policies Could Reshape the Crypto Landscape
The Trump administration’s policies signal a departure from previous regulatory frameworks, drawing mixed reactions. Bitcoin enthusiast Vijay Boyapati emphasized the magnitude of the shift, calling it a “sea change.” He argued the market has not fully priced in the implications of a pro-Bitcoin administration.
SEC rescinds SAB 121, boosting Bitcoin custody. Source: XSenator Lummis, now Chair of the Senate Subcommittee on Digital Assets, echoed this sentiment. She highlighted the need for bipartisan legislation to establish a legal framework for digital assets, framing Bitcoin as central to strengthening the U.S. dollar.
Despite the lack of immediate price action, the administration’s policy changes could reshape the U.S. crypto landscape, fostering long-term growth.
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