Bitcoin experienced a volatile price swing, dropping to $101,000 before bouncing back above $105,000 following the Federal Reserve’s decision to hold interest rates steady. While macroeconomic factors continue to influence Bitcoin’s movement, increasing talks about a U.S. Bitcoin Reserve could send BTC to new all-time highs in the coming months.
Fed Holds Rates – How Did Bitcoin React?
Bitcoin briefly dipped to $101,000 ahead of the Federal Reserve’s latest announcement, as traders speculated on possible rate cuts. However, the Fed decided to keep rates unchanged, acknowledging elevated inflation but offering no clear timeline for future reductions.
Following the announcement, Bitcoin quickly rebounded above $105,000, signaling that the market remains bullish despite macroeconomic uncertainty.
Bitcoin Reserve: The Next Big Catalyst?
While the Fed’s stance on interest rates affects short-term price movements, long-term bullish momentum is being fueled by growing government and institutional interest in Bitcoin.
Trump Administration Weighing a U.S. Bitcoin Reserve
David Sacks, the Crypto AI Czar in Trump’s administration, has hinted that discussions about a U.S. Strategic Bitcoin Reserve are well underway.
🚀 #Bitcoin eyes $120K! 🚀
✅ Fed holds rates steady – BTC rebounds above $105K
✅ U.S. Bitcoin Reserve talks heating up
✅ CoinCodex predicts $BTC above $120K in February pic.twitter.com/t0QolnB8lc— CoinCodex (@CoinCodex) January 30, 2025
Sacks confirmed that a study and review have been conducted, but no official announcement has been made yet. However, the Texas government is moving ahead with its own state-backed Bitcoin Reserve, with Lt. Gov. Dan Patrick making it a legislative priority.
Meanwhile, a bill introduced by Senator Cynthia Lummis is pushing for a national Bitcoin reserve, making it clear that discussions are heating up at the federal level.
Bitcoin Price Prediction – Could BTC Hit $120K in February?
Despite recent price swings, some analysts suggest that another bullish push is coming soon.
Additionally, our CoinCodex algorithmic price prediction suggests that Bitcoin could surge past $120,000 in February as bullish momentum builds.
Institutional Bitcoin Adoption is Accelerating
Beyond the potential U.S. Bitcoin Reserve, major institutions and influential investors continue to push Bitcoin adoption forward:
- Michael Saylor remains extremely bullish, predicting that Bitcoin could hit $180,000 in 2025.
- Trump Media aims to invest up to $250 million into Bitcoin and other crypto assets.
- Ripple CEO is advocating for a U.S. crypto reserve that holds more than just Bitcoin, signaling broader institutional adoption of digital assets.
Final Thoughts: Is Bitcoin Headed to New Highs?
With the Federal Reserve maintaining interest rates, Texas moving forward with a Bitcoin Reserve, and Trump’s administration actively studying the idea of a national reserve, Bitcoin appears poised for further gains.
- Bitcoin recovered above $105K after the Fed’s announcement
- A U.S. Bitcoin Reserve could push BTC to new all-time highs
- CoinCodex price prediction: $120K BTC in February
- Major investors and institutions continue accumulating Bitcoin
Source: https://coincodex.com/article/61932/bitcoin-targets-120k-as-fed-holds-rates-bitcoin-reserve-looms/