According to Farside Investors:

Nine of the twelve issuers reported positive contributions to total net inflows. Excluding Friday’s data for ARKB, the US BTC-spot ETF market registered total net inflows of $1,862.9 million, the largest since mid-December

On Friday, January 17, Massachusetts became the eighth state to propose legislation for a Strategic Bitcoin Reserve (SBR). State-level demand for an SBR could expedite the creation of a national SBR, potentially driving BTC to unprecedented levels.

Senator Cynthia Lummis also fueled speculation about a US SBR on Friday, saying,

“Working hard to get the Strategic Bitcoin Reserve and comprehensive digital asset legislation across the finish line.”

In December, Senator Lummis introduced the Bitcoin Act, proposing the US government acquire one million BTC, 5% of the total supply, over five years, with a mandatory 20-year holding period. A US SBR would tilt the supply-demand balance firmly in BTC’s favor.

Expectations of Trump repealing President Biden’s veto of the SEC’s SAB 121 regulation vote may amplify BTC demand.

Staff Accounting Bulletin 121 (SAB 121) is an SEC requirement for companies, including banks, to hold crypto assets on their balance sheets even if they hold the cryptos under customer custody. The regulation makes it expensive for banks to hold crypto under custody for clients, limiting crypto services and BTC demand.

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.

Bitcoin Analysis

Despite Saturday’s drop, BTC sits well above the 50-day and 200-day Exponential Moving Averages (EMA), sending bullish price signals.

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

Investors should consider US government-related news 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 enable the bears to target the $90,742 support level.

With a 64.02 14-day Relative Strength Index (RSI) reading, BTC may break above its all-time high before approaching overbought territory (RSI above 70).