US Bitcoin Reserve Coming?
Bitcoin prices are rallying today as bulls get their first glimmer of hope from President Trump. Yesterday, Trump signed an executive order to establish a task group aimed at delivering new crypto regulation and proposals regarding a national cryptocurrency stockpile. The order also prohibits the creation of central bank digital currencies in the US, to avoid competition with traditional crypto coins. Finally, the order signed yesterday also serves to protect crypto companies access to banking and lending services. Alongside the signing of the executive order yesterday, the SEC also removed accounting guidance which had previously made it prohibitively expensive for listed companies to store cryptocurrencies for third parties.
Key Moment for Bitcoin
Yesterday’s executive action from Trump marks a pivotal moment for the crypto sector and paves the way for a potential US strategic Bitcoin reserve which has become the source of so much speculation in recent months. Traders will now be monitoring incoming news flow for any further pro-crypto news (or noise) from Trump, which should continue to support the market. Ultimately, what bulls really want to see is some solid progress towards establishing a US strategic Bitcoin reserve.
Seized Crypto Assets
Additionally, traders are keeping an eye on developments regarding the estate of seized Bitcoin currently in possession of the US government. If the digital assets are held onto by the government, instead of sold, this should keep Bitcoin prices underpinned, while a sale (even partial) could cause some near-term downside.
Technical Views
BTC
The rally in BTC has stalled for now into the 107,855 highs, though the subsequent retracement lower has found strong demand, putting focus on a fresh test of the level. With momentum studies bullish, the near-term view remains in favour of a breakout towards the 113,690 level next. To the downside, 100,195 remains key support to watch with only a break of that level shifting the near-term bull view.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.