Coinspeaker
Bitcoin Briefly Claims $100K as Donald Trump Announces Sovereign Wealth Fund
Bitcoin
BTC
$98 939
24h volatility:
4.5%
Market cap:
$1.96 T
Vol. 24h:
$82.17 B
, the world’s largest digital asset, reclaimed the $100,000 price tag after soaring 3% in the past 24 hours. However, the resistance wall at the $100K level was too strong for the cryptocurrency, despite BTC claiming a daily high of $102,000. The price surge came alongside US President Donald Trump’s executive order for the creation of a sovereign wealth fund.
According to a report, Trump signed the order on Monday afternoon, attracting the attention of the digital asset space in a hurry. While the order did not explicitly state the inclusion of Bitcoin or cryptocurrencies in the sovereign wealth fund, it is possible that the fund would house the United States’ BTC holdings. This could, in turn, pave the way for similar funds, which could allow BTC purchases.
Notably, Trump’s order put the US Treasury and the Commerce Departments in charge of the sovereign wealth fund. While Treasury Secretary Scott Bessent has expressed slight interest in the digital asset space in recent history, Commerce Secretary nominee Howard Lutnick has been a loud supporter of the sector. In a CNBC podcast last year, Lutnick confirmed that he is a “fan of crypto”, specifically Bitcoin.
Lutnick is also the chief executive of Cantor Fitzgerald, a trading firm that has been named as the custodian for stablecoin giant Tether’s massive holdings of government paper. He is also known to be a huge fan of Tether and its stablecoins.
Bitcoin (BTC) Price Analysis
As pointed out in a post on X (formerly Twitter) by prominent analyst Ali Martinez, the MVRV Momentum indicator showed that BTC has remained in negative territory since the year began, suggesting weakness. In the past week alone, the cryptocurrency has crashed a massive 4.31% but is up 129.95% in the last year.
The MVRV Momentum indicator shows that #Bitcoin $BTC has remained in negative territory since the start of the year, signaling potential weakness in the market! pic.twitter.com/VipkTyaoZa
— Ali (@ali_charts) February 3, 2025
The chart provided by TradingView below shows that the Relative Strength Index (RSI) for Bitcoin reads a value of 45.72, which means that the bears are overall in control of the digital asset’s price action. The gradient of the line suggests that BTC could soon enter the oversold levels, and a retest of lower levels could be likely.
Photo: TradingView
On the other hand, the Moving Average Convergence/Divergence indicator is also bearish with the MACD line (blue) traversing above the signal line (red) while the MACD histogram remains red. The two lines are also moving away from each other, suggesting a massive surge in sellers.
Bitcoin Briefly Claims $100K as Donald Trump Announces Sovereign Wealth Fund
