Bitcoin (BTC) jumped 4.5% during an hour when market players talked about creating a special holding fund for BTC. After U.S. Senator Cynthia Lummis revealed her plans in a Twitter post Bitcoin’s value jumped 4.5% within one hour.
According to BTC investors Lummis’s brief message about upcoming big news increased market enthusiasm. The senator has acted as a prominent advocate for BTC ownership while pushing to establish a national BTC Strategic Reserve through U.S. government halls.
The Bitcoin price spike reached a temporary peak within its trading area of $101,300–$107,100 but then lost its strength.
Bitcoin Rally Fizzles After Speculative Hype Peaks
The Bitcoin rally gained momentum at first but quickly faded. The senator failed to appear at 10 a.m. and people started wondering what her early morning post was really about. The main subject of interest at the time according to Eleanor Terrett was the Senate Banking Committee’s move to make Senator Lummis the chairman of the Digital Assets Subcommittee.
Official word about a Bitcoin Strategic Reserve project failed to materialize which left potential investors empty-handed and unsure of what to expect. Following the delayed announcement Bitcoin lost 3.2% value during its downward trend over 25 days from its local peak of $106,000. The market reaction shows investors are still driven by hype when trading BTC.
The crypto market moved similarly to the 2023 Bitcoin ETF market collapse. Early ETF announcement rumors produced an instant price surge that traders sold off heavily afterward. Despite the first reaction the permanent ETF approval created long-term price increases as investors recognized its fundamental benefit.
The BTC Strategic Reserve launch would probably create markets that match past events. Updates about the BTC Strategic Reserve have not occurred yet so analysts do not use this event in their current BTC market estimate.
Placing BTC assets in reserve would help boost cryptocurrency use and make BTC function like gold. Market uncertainty stays strong because BTC supporters need Senator Lummis to disclose further plans.
