On Monday (December 16), Bitcoin soared to a peak of $106,641, setting a new all-time high. Republican Senator Cynthia Lummis, who is pushing the Bitcoin Act, met with Donald Trump’s newly nominated Treasury Secretary Bessent to discuss Bitcoin's strategic reserve. Japanese lawmaker Satoshi Hamada has also proposed establishing a strategic Bitcoin reserve in the country.
According to Watcher.Guru, Lummis has confirmed meetings with key members of Trump’s new administration. 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 will be committed to 'restoring fiscal responsibility'.
In this year's re-election campaign, Trump proved to be the first presidential candidate to genuinely support cryptocurrency. He has consistently advocated for Bitcoin throughout his campaign. Additionally, he called for the U.S. to ultimately become the world's cryptocurrency capital. When he won, the cryptocurrency market rejoiced. Just a month after the campaign concluded, 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 the major cryptocurrency. Its existence would strengthen the dollar and ensure it remains a global cryptocurrency powerhouse. With Trump back in the White House, there is considerable optimism that the bill will pass; it must be approved by both the Senate and House before reaching the President's Oval Office.
The bill ultimately proposes that the U.S. purchase 1 million Bitcoins by 2030. Furthermore, this asset would be held for at least 20 years. During this period, it would undergo independent reserve proof audits to ensure transparency.
Shortly after Trump's victory, Lummis expressed confidence in the bill's passage. In fact, she even predicted that a strategic Bitcoin reserve could be established within 100 days of Trump taking office.
According to the Japanese legislature's website, on December 11, the Japanese National Assembly officially received a request to discuss Bitcoin reserves. Congressman Satoshi Hamada proposed the measure; his name is similar to that of Bitcoin's anonymous creator, Satoshi Nakamoto.
In Japan, discussions about establishing a national Bitcoin reserve began after similar calls were made by lawmakers 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 reports that the party led by Japanese lawmaker Yuichiro Tamaki has significant influence in the Japanese legislature, and he is also a supporter of Bitcoin. In October, the leader of the National Democratic Party proposed tax breaks and regulatory reforms for cryptocurrency holders and companies in Japan.
Outside the United States, Brazilian lawmakers 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 lawmakers called for establishing a 'cryptocurrency reserve' in the 'treasury', while a presidential candidate in Poland suggested that the country should stockpile this asset.
Bitcoin Technical Analysis
FXEmpire analyst Bob Mason stated that Bitcoin is significantly 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 indicate that the price will move towards $110,000. A breakthrough of $110,000 could see bulls targeting $120,000.
Conversely, a drop below $95,000 may indicate a decline towards the support level of $90,742. Falling below the support level of $90,742 could trigger the support level at $86,263.
The 14-day RSI reading is 64.58, indicating that Bitcoin may break through its historical high of $103,630 and then enter the overbought region, where RSI exceeds 70.
