Bitcoin euphoria turned to ruin because the advice of a US senator failed, writes U.Today
U.Today – The price of the leading cryptocurrency (BTC) literally skyrocketed today as the possibility of the Bitcoin Strategic Reserve being announced in the near future rose rapidly following the announcement by Senator Cynthia Lummis.
Lummis said in her X post that something big will be announced today. The senator is well known for her pro-Bitcoin stance and was one of the first voices in American politics to promote the idea of building a strategic reserve in BTC.
As a result of this announcement, the price of Bitcoin increased by more than 4.5% in an hour, which is a lot for an asset with a market capitalization of over $2 trillion.
Interestingly, Lummis’ announcement came just as the cryptocurrency’s price hit the bottom of the $101,300-$107,100 range it has been trading in for the past few days.
Outcome
The senator ultimately didn’t follow through on his promised 10:00 a.m. announcement, and according to reporter Eleanor Terrett, the problem is that the Senate Banking Committee is currently going to vote on Senator Lummis becoming chairman of the Subcommittee on Digital Assets, which could be ” big news”. It’s unclear if anything else will be announced, Terrett added.
As a result, the price of Bitcoin has undergone a painful reversal, falling as much as 3.2% in the last 25 days from local highs of $106,000. Whether the Bitcoin Strategic Reserve will be released in the near future remains an open question. But now it is clear that such things are not yet on the price.
It could again be a Bitcoin ETF false announcement situation, although in 2023, after such an event, we saw massive cryptocurrency pumping and dumping, which eventually resulted in a steady rise in the price of BTC as the market realized that ETF approval – and is not yet included in the price.
