Come for the Lummis tweet & stay for the presidential working group
Bitcoin is experiencing the most volatility since the presidential inauguration and it is no surprise that it is tied to US president Donald Trump. The president is said to be speaking with the original Bitcoin president Nayib Bukele, over the phone today.
However, so far nothing has come of this exchange of words and Bitcoin is falling fast after optimism for a Bitcoin strategic reserve went unfulfilled. Much of the regulatory anticipation was tied to a cryptic tweet from Senator Lummis that alerted readers to be ready for a big announcement today.
This prompted BTC to rise off support at around $101,000 to a daily high just below $107,000 in three hours. When the news turned out to be tied to her own political career Bitcoin quickly dropped a few thousand dollars in price. Instead, Trump did create a presidential working group on digital asset markets which could be a first step on the road to a strategic reserve.
The Road to Reserves
The group, which includes the Treasury Secretary, Attorney General, Commerce Secretary, Homeland Security Secretary, and chairs of the Commodity Futures Trading Commission and Securities and Exchange Commission, will assess whether existing regulations adequately address the evolving digital asset ecosystem.
In a policy statement, the administration emphasized digital assets' critical role in driving innovation and maintaining U.S. economic leadership. The executive order signals a proactive approach to supporting responsible blockchain technology development across economic sectors.
Notably, the order explicitly protects individuals' rights to engage in blockchain activities—including mining, validating, and self-custody of cryptocurrencies—without facing legal persecution. Additionally, the administration pledged to promote fair and open banking access, addressing a long-standing concern in the crypto industry about banking service limitations.
The initiative comes amid increasing scrutiny of crypto banking practices, highlighted by Coinbase's recent lawsuit against the Federal Deposit Insurance Corporation and growing congressional interest in the sector's regulatory framework.
So, while traders were hoping for a home run today Bitcoin instead made a base hit and is still sitting above $100,000 which should prove to be a very key psychological level that Bitcoin must hold to avoid a correction.
If we do get a BSR, it is anyone’s guess as to what that would mean for the price of BTC. It should at the very least make a new all-time high breaking above the record set just a few days ago at $108,300. If we see a comparable uptick to the one made since the November elections and begin from the mid-January lows at $89,000 than we would see Bitcoin rise to $130,000 per coin.