On Monday (December 16), Bitcoin soared to a record high of $106,641. Republican Senator Cynthia Lummis, who is promoting the Bitcoin Act, met with Scott Bessent, Donald Trump's newly nominated Treasury Secretary, to discuss the Bitcoin strategic reserve. Japanese Congressman Satoshi Hamada has also proposed establishing a Bitcoin strategic reserve in the country.
According to Watcher.Guru, Lummis confirmed meetings with key members of Trump's new government. She described Bessent as 'a defender of digital assets and an important ally in my strategic Bitcoin reserve.' Additionally, she expressed excitement about future collaboration with this official, as the new president and his team are committed to 'restoring fiscal responsibility.'
In this year's reelection campaign, Trump has proven to be the first presidential candidate to truly support cryptocurrency. He has consistently backed Bitcoin throughout the campaign. He also called for the United States to ultimately become the world's cryptocurrency capital. When he won, the cryptocurrency market was ecstatic. Just a month after the election, Bitcoin's price reached six figures for the first time.
Now, the new government seems to be delivering on its promises. Lummis announced a meeting with Bessent to discuss her strategic Bitcoin reserve plan.
Earlier this year, Lummis introduced the Bitcoin Act, proposing that the country establish a reserve of major cryptocurrencies. Its existence would strengthen the dollar and ensure it remains a global cryptocurrency powerhouse. With Trump back in the White House, there is great optimism that the bill will pass; it must be approved by both the Senate and the House of Representatives before reaching the President's Oval Office.
The bill ultimately proposes that the United States purchase 1 million Bitcoins by 2030. Furthermore, this asset will be held for at least 20 years. Throughout this process, it will undergo independent reserve proof audits to ensure transparency.
Shortly after Trump's victory, Lummis expressed confidence in the passage of the bill. In fact, she even predicted that the Bitcoin strategic reserve could be approved within 100 days of Trump's inauguration.
According to Japan's legislative website, on December 11, the Japanese Parliament officially received a request to discuss Bitcoin reserves. Congressman Satoshi Hamada proposed this suggestion; his name is similar to that of Bitcoin's anonymous creator Satoshi Nakamoto.
In Japan, discussions about establishing a national Bitcoin reserve began before similar calls were made by legislators in Russia, Brazil, Poland, and the United States. Although the party to which Hamada belongs holds only two seats in the Senate, his proposal is likely to gain at least some level of support in the Japanese legislature.
Decrypt reported that the political party led by Japanese Congressman Yuichiro Tamaki has significant influence in Japan's legislature, and he is also a proponent of Bitcoin. In October, the leader of the Constitutional Democratic Party proposed tax reductions and regulatory reforms for cryptocurrency holders and companies in Japan.
Outside the United States, Brazilian legislators proposed a bill in November calling for the country to bolster its treasury with the world's oldest cryptocurrency. In Europe, last month, several Russian legislators called for the establishment of a 'cryptocurrency reserve' in the 'treasury,' while a presidential candidate in Poland argued that the state should store this asset.
Bitcoin Technical Analysis
FXEmpire analyst Bob Mason stated that Bitcoin is far above the 50-day and 200-day exponential moving averages (EMA), signaling a bullish price trend.
Returning to the historical high of $103,630 on December 5 may signal that the price is on track to reach $110,000. A breakthrough of $110,000 could lead bulls to target $120,000.
On the contrary, falling below $95,000 may signal a drop towards the support level of $90,742. Breaching the support level of $90,742 could trigger a drop to the support level of $86,263.
The 14-day RSI reading is 64.58, indicating that Bitcoin may break through its historical high of $103,630 and enter the overbought territory, where the RSI is above 70.
