The recent geopolitical and regulatory developments have stirred interest in Bitcoin, particularly following the Trump administration's announcement of plans to establish a national Bitcoin reserve. This move suggests a potential shift in U.S. policy towards cryptocurrencies, with David Sacks highlighting the need for a clear legal framework to support market growth. However, the market remains cautious as the SEC restructures its crypto enforcement team, aiming to clarify the legal status of digital assets. Despite these positive signals, Bitcoin faces downward pressure due to tightening USD liquidity, exacerbated by the U.S. Treasury General Account's increased cash balance. This liquidity squeeze, coupled with the aftermath of recent mass liquidations, has contributed to today's price fluctuations.
The 2x Bitcoin Strategy ETF (BITX) experienced a decline, dropping 1.85% to $54.54 at 4:20 AM on Wednesday, February 5.