- Summary:
- Bitcoin price has a renewed optimism about it propelled by a growing reality that more governments want to include it in their reserves.
Bitcoin price rose for the second successive day on Thursday, rising by more than 1% after retesting the $105k resistance mark. The crypto market bellwether has found its rhythm, with its trading volume up by 24 percent in the last 24 hours. A spike in an asset’s traded volume during a price uptrend signals a high demand.
Strategic Bitcoin Reserves Could Fuel BTC Price
Conversations revolving around mainstreaming of Bitcoin are increasingly taking center stage. In the latest such talk, Federal Reserve Chairman, Jerome Powell stated on Wednesday that banks could serve crypto customers “if the rsisks are managed properly”. That added upside propusion to Bitcoin price, driving it up by more than 3% in the hours that followed.
However, the Fed’s comments are not an isolated case of rising affinity towards Bitcoin in the United States. Twelve US states have initiated legislation that could see them establish strategic Bitcoin reserves. Passing such laws could add positive sentiment around BTC and catalyse increased institutional adoption of the coin.
In Europe, the Czech government could also be preparing to purchase vast amounts of Bitcoin. The country’s central bank Governor Aleš Michl told the Financial Times that he will present a plan to the bank’s board to approve allocating 5% of its reserves to Bitcoin as a diversification strategy. That translates to about $7 billion at current exchange rates, given the Czech National Bank’s €140 billion reserve.
Bitcoin is seen as a strategic store of value, with some pundits labeling it “digital gold”. US President Donald Trump’s support for the coin has added weight to that view, and 2025 could turn out to be Bitcoin’s best year yet.
Bitcoin Price Prediction
Pivot: Bitcoin price pivots at $104,200 and action above that level will favour the buyers to be in control. Conversely, the momentum will shift to the downside if the price breaks below that level.
Resistance: Primary resistance is likely to be at $106,010. An extended control by the buyers could take the action higher and test $108,010.
Support: The first support at $102,310. The upside narrative will be invalidated by a break below that level. The resulting momentum could take BTCUSD lower to test $99,570.
