Bitcoin price remained on edge as Polymarket data showed that odds of Donald Trump launching a Strategic BTC reserve fell. BTC retreated to $96,000, down from this week’s high of near $100,000.
Strategic Bitcoin Reserves Odds Fall
Odds of Trump launching strategic Bitcoin Reserves in the first 100 days of his presidency dropped in Polymarket.
These odds dropped to 31% in a Polymarket poll with over $1.5 million in assets, down from over 60% in November.
Trump has vowed to be the most pro-crypto president ever as he positions the US to be the leader in the industry. He has already named Paul Atkins to be the next head of the Securities and Exchange Commission (SEC).
Trump has already started to create the first crypto council, a prominent technology investor at Craft Ventures, which has invested in companies like Affirm, Bitwise, and Trellis. Most importantly, he has founded World Liberty Financial, an upcoming crypto project.
Trump has expressed some support to a strategic Bitcoin Reserve, by converting the US hoard of coins. Data by BitcoinTreasuries shows that the US holds 198,109 coins valued at over $18 billion, which it can convert into these reserves.
Read more: These Charts Explain Why Bitcoin Price Has Room to Run
A move by the US to create a Bitcoin reserve would push other countries to do the same. China already owns 190,000 coins, while the UK, Ukraine, Bhutan, and El Salvador already own thousands of coins.
Such a move would also lead to a scramble for the already dwindling Bitcoins. CoinGlass data shows that Bitcoin balances in exchanges has continued falling and now sits near the lowest level in years. Bitcoin has a supply limit of 21 million, and 19.8 million have already been mined, meaning that only 1.2 million coins will ever be mined. Therefore, with difficulty rising, the coin will likely rise in the long term.
Bitcoin price analysis
The daily chart shows that the BTC price peaked at $108.230 in December and has now dropped to $96,000. It has moved below the lower side of the ascending channel and formed what looks like a bearish flag pattern.
On the positive side, the coin has remained above the 50-day Exponential Moving Average, meaning that the uptrend is still intact.
However, there is also a risk that the coin will crash to the support at $74,000, the upper side in March and then resume the uptrend.
