BTC Price Forecast: Will US Policies Drive Bitcoin Beyond $110K?

Bitcoin Hovers Below $105K Amid Strategic Reserve Speculation

On Saturday, January 25, bitcoin (BTC) slipped by 0.02%, partially reversing Friday’s 0.84% gain to close at $104,852. Significantly, BTC avoided sub-$100k levels for the fifth consecutive session.

ETF Market Flows Signal Positive Sentiment

The US BTC-spot ETF market extended its inflow streak to four weeks, underscoring investor optimism toward US President Trump’s pro-crypto agenda. According to Farside Investors:

• iShares Bitcoin Trust (IBIT) reported net inflows of $1,317 million in the week ending January 24.
• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $202 million.
• ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $173 million.

The US BTC-spot ETF market registered $1,757.7 million of total net inflows in the week after $1,862.9 million of total net inflows the previous week.

US President Trump’s policies boosted demand for riskier assets, with recent executive orders putting crypto into the limelight.

Strategic Bitcoin Reserve Sparks Debate

On Thursday, January 23, President Trump spoke at the World Economic Forum, calling for the Fed and other central banks to lower rates. A more dovish Fed rate path could materially lower borrowing costs, boosting demand for riskier assets, including BTC.

On Thursday, January 23, President Trump signed an executive order (EO) establishing the Presidential Working Group on Digital Asset Markets. The EO tasked the group with evaluating the creation of a strategic national digital assets stockpile. The order stopped short of naming specific cryptocurrencies for inclusion. However, it represents a critical step toward recognizing crypto as a strategic reserve asset.

Meanwhile, Senator Cynthia Lummis’s Bitcoin Act could enable a US Strategic Bitcoin Reserve (SBR). Congress, the Fed, the US Treasury Secretary, and the President must approve national strategic reserve assets.

The Bitcoin Act proposes the US government acquire one million BTC over five years, with a mandatory 20-year holding period. On Friday, the Senator was appointed Chair of the Senate Banking Subcommittee on Digital Assets.

Senator Lummis, recently appointed Chair of the Senate Banking Subcommittee on Digital Assets, expressed optimism about bipartisan cooperation to advance Bitcoin-related legislation.

BTC Price Outlook: Record Highs in Sight?

BTC’s price trends hinge 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 the record high of $108,231. Conversely, a lack of progress toward an SBR and BTC-spot ETF outflows could pull BTC toward $95k.

Dive deeper into the influence of macroeconomic data, US crypto policies, and BTC-spot ETF market flows on price action. Follow our analysis and forecasts here to manage crypto-related risks.

Technical Analysis

Bitcoin Analysis

BTC sits above the 50-day and 200-day Exponential Moving Averages (EMA), sending bullish price signals.

A break above $105k could signal a move toward the all-time high of $108,231. A breakout from $108,231 may enable the bulls to target $110k next.

Investors should consider US government-related activity and US BTC-spot ETF market-related news.

Conversely, a BTC drop below $100k could signal a fall toward the 50-day EMA. A break below the 50-day EMA may bring the $90,742 support level into play.

With a 61.59 14-day Relative Strength Index (RSI) reading, BTC could rise above its all-time high before entering overbought territory (RSI above 70).

Explore real-time BTC price data and indicators here to stay ahead of market trends.

Ethereum Analysis

ETH, still the second-largest cryptocurrency by market cap, sits below the 50-day EMA while remaining above the 200-day EMA. The EMAs send bearish near-term but bullish longer-term price signals.

An ETH break above the 50-day EMA would support a move toward the $3,563 resistance level. A breakout from the $3,563 resistance level may bring $4,000 into sight.

ETH-spot ETF flow trends remain crucial to near-term price moves.

Conversely, a drop below the $3,287 support level could enable the bears to target the 200-day EMA. A fall through the 200-day EMA may bring the sub-$3,000 and the $2,815 support level into play.

The 14-period Daily RSI reading, 48.89, suggests ETH could drop below the 200-day EMA before entering oversold territory. (RSI below 30).

Stay Ahead of Crypto Market Trends

Monitor Bitcoin’s progress toward $110,000 and Ethereum’s price shifts by tracking ETF inflows, macroeconomic data, and regulatory developments. Stay informed with real-time updates and insights here to navigate the evolving crypto landscape effectively.