On Thursday (January 9), Bitcoin plunged to around $95,000, touching a low of $94,809. After the unexpected exceeding of expectations by the U.S. JOLTS labor data, initial jobless claims data fell below expectations, and the FOMC meeting minutes hinted that officials were eager to slow down the rate cuts, pushing hawkish pricing to stimulate funds back into the dollar. Former Chinese billionaire Zhao Changpeng revealed that the Bhutanese government management company has established a cryptocurrency strategic reserve covering Bitcoin, Ethereum, and Binance Coin.

Bhutanese government management company: Officially established cryptocurrency strategic reserves

Zhao Changpeng revealed in a tweet that the Bhutanese government management company (GMC) has established a cryptocurrency strategic reserve encompassing Bitcoin, Ethereum, and Binance Coin (BNB). He noted that this is the first national strategic reserve to include multiple cryptocurrencies, showcasing Bhutan's open attitude toward diverse crypto assets.

He mentioned that this opens the door for other countries to incorporate cryptocurrencies into their national strategic reserves, particularly various crypto assets including Binance Coin. He predicts that Bhutan's precedent will not be the last and may lead more countries to explore similar strategies.

CoinTelegraph notes that incorporating digital assets into the GMC's strategic reserves aims to enhance the economic resilience of the jurisdiction and provide new opportunities through participation in Bitcoin mining. The announcement stated that the city government expects to discuss its crypto strategic reserve plan with senior officials from the Bhutanese government and global industry leaders in March.

Unlike other global jurisdictions exploring Bitcoin-only strategic reserves, Bhutan's GMC seeks to store several well-established cryptocurrencies as part of its potential crypto strategic reserves. The managing department stated: "GMC intends to recognize digital assets with large market caps and deep liquidity to ensure they can be bought and sold easily with minimal price impact."

Additionally, the GMC will also seek to identify digital assets issued on "more mature, safer blockchains that support on-chain transaction monitoring."

Not long ago, Bhutan announced the issuance of a $100 million bond, starting construction on the GMC project in November 2024. King Jigme Khesar Namgyel Wangchuck stated that the project aims to become an economic corridor connecting South Asia and Southeast Asia and will have administrative autonomy and legal independence. Officials indicated that the GMC will be built in phases, with completion expected in 21 years.

As GMC announces its crypto reserves, the Bhutanese government already holds Bitcoin and other crypto assets through the Royal Government's commercial entity Druk Holding and Investments (DHI). According to Arkham Intelligence, Bhutan holds 11,688 Bitcoin ($1.12 billion) and 656 Ethereum ($2.2 million). Additionally, Druk holds a small amount of Ethereum on chains like Polygon, BNB Chain, and Base.

According to Forbes, Bhutan has been investing in Bitcoin since at least 2019, with a significant amount of Bitcoin coming from local Bitcoin mining operations.

DHI collaborates with large cryptocurrency mining companies like Bitdeer and is also a customer of troubled cryptocurrency lending institutions BlockFi and Celsius, reportedly investing millions of dollars in digital assets.

Fidelity: Nation-states and central banks will buy Bitcoin in 2025

According to a report by CoinDesk, Fidelity Digital Assets predicts that 2025 will be a turning point for Bitcoin adoption, with more nations, central banks, sovereign wealth funds, and government treasuries expected to purchase Bitcoin to build strategic reserves.

The report indicates that as inflation rises, currency devaluation occurs, and fiscal deficits widen, allocating Bitcoin may better address macroeconomic headwinds than not allocating it.

Fidelity analyst Matt Hogan stated that Bitcoin as a strategic asset may attract more countries to adopt accumulation strategies, although some countries may purchase secretly to avoid driving up market prices.

Currently, the United States, the United Kingdom, Ukraine, Bhutan, and El Salvador are the governments holding the most Bitcoin, most of which have been acquired through government seizures or recovered from criminal activities. Additionally, the report mentions that U.S. presidential candidate Donald Trump and Senator Cynthia Lummis both support establishing a national Bitcoin reserve.

If passed, Lummis's proposed Bitcoin Act in 2024 could encourage other countries to follow suit. Fidelity notes that this political and financial game will further drive the global adoption of Bitcoin.

U.S. traditional markets bearish: Initial jobless claims, FOMC minutes hawkish pressure

U.S. labor data shines, with initial jobless claims falling to 201,000, below the expected 218,000. In December, private sector employment rose by 122,000, but fell short of market expectations.

Bloomberg reports that amid rising inflation risks, Federal Reserve officials adopted a new rate-cutting stance in December, deciding to slow the pace of rate cuts in the coming months.

The minutes from the Federal Open Market Committee (FOMC) meeting on December 17-18 show: "Participants indicated that the FOMC committee has reached or is close to the appropriate point to slow the pace of policy easing. Many participants noted that various factors underscore the necessity for cautious monetary policy decision-making in the coming quarters."

The minutes released on Wednesday in Washington state that Federal Reserve officials noted rising inflation data, continued strong spending, and reduced downside risks to the labor market and economic activity outlook. At this meeting, U.S. central bank officials lowered the benchmark lending rate by 25 basis points to a range of 4.25 to 4.5%.

Bitcoin Technical Analysis

Economies.com reports that Bitcoin prices have strongly fallen below the $95,195 level, confirming that the bearish trend will continue to dominate for some time, paving the way for new negative targets starting from $90,000 and extending to $87,055.

It is important to note that trading above $95,195 again will lead to prices attempting to recover and try to establish a bullish wave within the day.