Explore our expert analysis here on the SEC’s next move and its implications for XRP’s future.
Bitcoin Hits $107K Amid Spot ETF Inflows
Meanwhile, BTC-spot ETF market flows bolstered BTC demand on January 24. The spot ETF market reported net inflows of $188.7 million on January 23, extending its inflow streak to six sessions. On January 24, the BTC-spot ETF market could extend its inflow streak to seven, tilting the supply-demand balance in BTC’s favor. According to Farside Investors:
- Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $186.1 million on January 24.
- ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $168.7 million.
Excluding BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market reported net inflows of $362 million.
BTC-spot ETF flow trends reflected upbeat investor sentiment toward the flurry of crypto-related activity on Capitol Hill.
US President Trump’s Pro-Crypto Agenda Gathers Momentum
US President Donald Trump signed an executive order (EO) on January 23, creating the Presidential Working Group on Digital Asset Markets. The group is reportedly tasked with developing a Federal regulatory framework governing digital assets, including stablecoins, and evaluating the creation of a strategic national digital assets stockpile.
While the EO was silent on a Strategic Bitcoin Reserve (SBR), markets remain hopeful of Capitol Hill approving the Bitcoin Act. Senator Cynthia Lummis introduced the Bitcoin Act in 2024, proposing the US government purchase one million BTC over five years, with a mandatory holding period of 20 years.
Ahead of Friday’s EO, there was debate on whether President Trump would push for a stockpile or reserve. Approval of a US SBR requires consensus among Congress, the Federal Reserve, the Treasury Department, and the President.
Amicus Curiae attorney John E. Deaton commented on the nuances of stockpiles and reserves:
“I’ve been saying for some time: What’s your definition of a SBR? President Trump, via EO, can order that all seized BTC (or any other seized digital asset for that matter) be held in escrow and not sold. If you call that a SBR, then I’m confident we get one. If by SBR, you mean the USG buying BTC, it will take an act of Congress, like the Senator Cynthia Lummis Bill.”
Friday’s EO followed the SEC’s rescission of Staff Accounting Bulletin 121 (SAB 121). The recission of SAB 121 could stimulate BTC and crypto demand as it removes the requirements for companies, including banks, to record crypto assets on their balance sheets even when holding them in customer custody.
The regulation significantly increased the cost for banks to provide crypto custody services, constraining crypto offerings and Bitcoin adoption.
Bitcoin Price Outlook
On Friday, January 24, BTC rose 0.84%, adding to Wednesday’s 0.28% gain, closing at $104,875. Significantly, BTC closed above the crucial $100k level for the eighth consecutive day. Recent price trends indicate investors’ confidence in Congress approving a US SBR.
BTC’s price trends remain hinged on Trump’s executive orders, SBR developments, and US BTC-spot ETF flows.
US BTC-spot ETF inflows and progress toward a US SBR could drive BTC beyond Monday’s record high of $109,312. Conversely, fading bets on an SBR and BTC-spot ETF outflows could drag BTC toward $95k.