Outside Source
BTC price volatility returns with a vengeance as US Senator Cynthia Lummis leaks a cryptic 10am announcement.
Market Update
Bitcoin (BTC) faced snap volatility at the Jan. 23 Wall Street open amid fresh rumors that the US would announce a strategic Bitcoin reserve.
BTC/USD 5-minute chart. Source: Cointelegraph/X
Lummis teases “big things,” leaves details missing
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD took a tour of its short-term range and gained $4,000 before retracing most of the move.
The sudden surge accompanied a tweet from Wyoming Senator Cynthia Lummis, author of a dedicated Bitcoin reserve bill, who hinted that the US would announce something pertinent to crypto markets at 10 am.
“Big things are coming,” one of two posts on X stated.
Lummis did not stipulate which timezone the news would be made from, with President Donald Trump scheduled to speak at 11 am Eastern Time from the World Economic Forum in Davos, Switzerland.
Source: Cynthia Lummis
As noted by sources including FOX Business journalist Eleanor Terrett, Lummis could also become Chair of the US House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion, subject to a vote being held an hour before Trump’s appearance.
Terrett added that it was “unclear if anything else will be announced.”
After Trump failed to mention Bitcoin, crypto or a reserve involving them during his inauguration speech, BTC price action took a turn for the worse as hopes of a major breakthrough in US adoption faded.
Reacting, popular industry commentators could only speculate on what was to come.
Popular pundit WhalePanda went as far as to suggest that the cryptic nature of Lummis’ X posts constituted “market manipulation.”
Source: Daan Crypto Trades
Odds of Trump creating the reserve within his first 100 days in office, meanwhile, rebounded to 40% on prediction service Polymarket.
Source: Polymarket
Bitcoin liquidations mount as traders shaken out
Bitcoin meanwhile liquidated short positions on its trip toward its range highs.
Related: BTC price gained 40% in 2 months when Bitcoin was last this rangebound
Data from monitoring resource CoinGlass put the total BTC short liquidations at nearly $20 million over a single hour at the time of writing.
Bitcoin liquidations (screenshot). Source: CoinGlass
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article first appeared at Cointelegraph.com News
