Bitcoin (BTC) recently saw some wild price swings, hitting $106,000 amid fresh rumors about a U.S. strategic Bitcoin reserve. On January 23, the price jumped significantly right as Wall Street opened, fueled by speculation about an upcoming announcement.
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD shot up by $4,000 before pulling back most of those gains. This sudden price action came right after a tweet from Wyoming Senator Cynthia Lummis. She’s known for her support of a Bitcoin reserve bill and hinted that something big would be announced at 10 a.m.
“Big things are coming,” she tweeted. However, she didn’t specify the timezone. Meanwhile, President Donald Trump was set to speak at 11 a.m. Eastern Time during the World Economic Forum in Davos, Switzerland.
Sources like FOX Business journalist Eleanor Terrett mentioned that Lummis might be appointed as Chair of the U.S. House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion. This appointment would depend on a vote happening just an hour before Trump’s address. Terrett pointed out that it was “unclear if anything else will be announced.”
After Trump’s speech, which didn’t mention Bitcoin or any reserves, BTC’s price action took a hit. Hopes for a major breakthrough in U.S. adoption faded. Industry commentators were left speculating about what might happen next.
One popular commentator, WhalePanda, even suggested that Lummis’ vague posts could be seen as “market manipulation.” Meanwhile, the odds of Trump establishing the reserve within his first 100 days in office rose to 40% on the prediction service Polymarket.
As traders reacted to the volatility, Bitcoin liquidations piled up. Short positions were liquidated as the price approached its highs. Data from CoinGlass showed that total BTC short liquidations reached nearly $20 million in just one hour at that time.
This article doesn’t offer investment advice or recommendations. Every investment and trading decision carries risk, so it’s important for readers to do their own research before making choices.