Bitcoin News Today: Bitcoin surges 3% near $119K as U.S. eyes strategic reserve and treasuries buy 28K BTC

Bitcoin's price has surged to near $119,000, rebounding almost 3% from its recent lows following the Federal Open Market Committee (FOMC) meeting, as attention shifts to the potential establishment of a strategic Bitcoin reserve by the U.S. government [1]. This development has offset concerns over the Federal Reserve's hawkish stance on interest rates, with Chair Jerome Powell refraining from signaling any rate cuts in the immediate future [1]. The FOMC decision, which maintained current interest rates, came amid mixed economic indicators, including a low unemployment rate and persistently high inflation [1].

The Federal Reserve's decision has led to adjustments in market expectations, with data from the CME Group’s FedWatch Tool suggesting a growing preference for maintaining current rates over the next two months [1]. Despite the Fed's cautious approach, President Donald Trump’s pressure for rate cuts or resignation was not acknowledged by Powell, who indicated no plans for such actions [1].

Meanwhile, the White House is reportedly moving forward with plans for a strategic Bitcoin reserve, as emphasized by Robert “Bo” Hines, the executive director of the U.S. President’s Council of Advisers on Digital Assets. Hines reiterated the administration’s strong support for Bitcoin and its community, stating that the initiative would begin “in short order” [1].

Institutional interest in Bitcoin has also intensified, with corporate treasuries acquiring nearly 30,000 BTC in just 48 hours [1]. According to Charles Edwards of Capriole Investments, this level of institutional buying is significant, with net buying now accounting for 97% of all transactions. The last time such a high proportion of institutional net buying was recorded was in August 2020, suggesting that market participants with in-depth knowledge may be anticipating major developments [1].

The increased institutional activity has occurred alongside broader market volatility, with cross-crypto liquidations reaching nearly $500 million in the preceding 24 hours, according to data from CoinGlass [1]. Despite the turbulence, the surge in corporate Bitcoin treasury purchases indicates a growing institutional confidence in the asset class.

Sources:

[1] Bitcoin price retargets $119K as treasuries buy 28K BTC in two days

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