Bitcoin experienced a significant surge, briefly touching $106,000, fueled by growing expectations of a U.S. government-backed Bitcoin reserve. This surge follows a tweet from venture capitalist Anthony Pompliano, highlighting a dramatic increase in the probability of such a reserve being established in 2025.
70% Probability of U.S. Bitcoin Reserve
According to data from the Kalshi betting market, the probability of the U.S. government building a strategic Bitcoin reserve in 2025 has reached a historic high of 70%. This surge in speculation coincides with the approaching inauguration of the new U.S. president, scheduled for next Monday, January 20th.
Potential DOJ Bitcoin Sale Looms
The recent court order authorizing the U.S. Department of Justice to sell 69,370 BTC confiscated from a Silk Road hacker has added another layer of intrigue to the market. While this sale could potentially inject over $7 billion into the U.S. government's coffers, many Bitcoin enthusiasts hope the new administration will instead incorporate these holdings into the proposed strategic reserve.
Bitcoin's Recent Performance:
Bitcoin has seen impressive gains in recent days, with a 4% increase in the past 24 hours and a 16.90% increase over the past week, demonstrating strong market confidence. However, the cryptocurrency experienced a slight pullback following its peak, currently trading at around $103,120, marking a 2.71% decline.
January 2025, Cryptoniteuae