The Bitcoin value jumped and fell abruptly on January 23 when investors started to talk about possible American strategic Bitcoin holdings. After U.S. Senator Cynthia Lummis made puzzling social media posts BTC value jumped up $4,000 before returning most of that gain.
The market reacted when Senator Lummis posted on X about her 10 a.m. announcement. As an active Bitcoin proponent who authored Bitcoin reserves legislation the Wyoming senator kept the market guessing. Her announcement happened at the same time as former President Donald Trump delivered his World Economic Forum speech in Davos.
Bitcoin Surges Before Collapse
Shortly before Donald Trump’s World Economic Forum address an hour vote confirmed Senator Lummis’ position as chair of the House Financial Services subcommittee overseeing digital assets according to Fox Business reporter Eleanor Terrett.
When traders prepared for possible news Bitcoin soared to $106,000 but triggered short position liquidation of over $20 million in one hour according to CoinGlass data. BTC lost its value because Trump failed to discuss BTC or create a national reserve system in his address.
WhalePanda who tracks the industry closely believed Senator Lummis tried to manipulate crypto markets with his enigmatic messages. According to Polymarket prediction data the chances of Trump creating a BTC reserve during his first 100 days rose to 40%.
Despite ongoing market speculation about a U.S. strategic BTC reserve no formal statements have been released by U.S. authorities. The market reaction to Lummis’ statements shows BTC easily moves when regulators or politicians speak about it.
