Bitcoin rose to a fresh record high of $109,558 in early trading in Asia, coinciding with President Donald Trump’s inauguration day. Market watchers point to the increased likelihood that Trump could establish a strategic bitcoin reserve (SBR) via executive order – one of perhaps 100 he could sign immediately after taking office.

Is a Strategic Bitcoin Reserve Coming?

Mentions of US Bitcoin reserves under Trump have been circulating for months, but speculation intensified when Polymarket, a cryptocurrency-based forecasting platform, showed a sudden enhance in the chances of such a reserve being created within Trump’s first 100 days. The odds, which reached 59%, quickly overtook Bitcoin’s pump and reached a fresh high.

In the past, Trump has campaigned on potentially transferring all BTC seized by law enforcement to a government-held reserve. Although there was no official confirmation, rumors that a formal order could be signed “as early as inauguration day” caused pricing momentum.

Notably, several influential Bitcoin supporters met with the fresh administration this past weekend, fueling speculation about SBR. Senator John Barrasso wrote via X (formerly Twitter) on Sunday: “Senator Lummis and I had a great time speaking with President Donald Trump this morning. Wyoming is ready for tomorrow’s inauguration!”

Senator Cynthia Lummis, known for her pro-Bitcoin stance, amplified the discussion on the government-led BTC initiative. In a January 17 post on X, she stated: “I am working hard to complete the Bitcoin Strategic Reserve and comprehensive digital asset legislation. Thanks for stopping by @jespow, @arjunsethi, @DavidLRipley!”

Lummis’ own legislative proposal, dubbed the “Bitcoin Act,” famously proposes the purchase of 1 million Bitcoins.
MicroStrategy CEO Michael Saylor also participated in meetings with the Trump administration’s cabinet. He shared a photo of himself with Robert F. Kennedy Jr. on X. and Jared Kushner, captioned: “The future is right”

Meanwhile, Eric Trump posted a photo with Saylor and “Crypto Czar” David Sacks, commenting: “To the moon! 🚀🚀 #Bitcoin @WorldLibertyFi @saylor @DavidSacks”

Further highlighting the White House’s apparent openness to Bitcoin, Fred Thiel, chairman and CEO of MARA Holdings (NASDAQ:MARA) – one of the largest US Bitcoin mining companies – reportedly sat with the fresh US Secretary of Defense at the vice president’s reception on Saturday night.

MacroScope (@MacroScope17), an outstanding market analyst, excellent on X: “Remember that the reports and photos we are seeing of Trump and his new cabinet working with BTC supporters (Scott Bessent at the crypto ball, etc.) are just the tip of what is going on. I expect there will be plenty of headlines in the coming days, weeks and months. A unique situation in the history of financial markets.”

David Bailey, CEO of BTC Inc, who played a significant role in encouraging then-candidate Trump to create a pro-Bitcoin platform, described Trump’s recent foray into TRUMP’s personal memecoin as “not my cup of tea,” but he emphasized gratitude for Trump’s pro-Bitcoin stance via today’s X.

“I will continue to do everything in my power to support the President and his family in adopting Bitcoin and provide candid advice when asked. America will be a Bitcoin and Crypto superpower, and the victory has only just begun.” When a user asked Bailey whether some major cryptocurrency-friendly actions – such as releasing Ross Ulbricht, confirming stocks via executive order, and co-sponsoring Senator Lummis’ SBR bill – would make up for the TRUMP memecoin controversy, Bailey replied, “all of that will happen and more.”

Charles Edwards, CEO of Capriole Investments, noticed that Bitcoin’s rapid downward move followed by a quick rebound to fresh highs could indicate further gains. “Trust the second move,” Edwards noted, emphasizing that “when markets move aggressively in one direction and then reverse things shortly thereafter, the second move is more likely to be the real move that sets a new trend.”

He added that after a “good old-fashioned short close,” investors realized the “overwhelming positive side” of the rumored developments – ranging from “higher BSR odds” to “the entry of the MAGA army into cryptocurrencies.” Still, Edwards acknowledged that “anything can happen” in such a volatile market environment.

At the time of publication, the price of BTC was $108,182.

Featured image from YouTube, chart from TradingView.com