Key Points
- Bitcoin briefly achieved a price of $100,000, coinciding with Donald Trump’s announcement of a sovereign wealth fund.
- The US sovereign wealth fund might include Bitcoin holdings, potentially setting a precedent for similar funds.
Bitcoin, the world’s largest digital currency, briefly reached a price of $100,000, following a 3% increase within 24 hours.
However, the cryptocurrency faced strong resistance at the $100,000 mark, even though it achieved a daily high of $102,000.
This price increase occurred simultaneously with US President Donald Trump’s executive order to establish a sovereign wealth fund.
Trump’s Executive Order and Cryptocurrency
The executive order was signed by Trump on Monday afternoon, quickly drawing attention from the digital asset community.
Although the order did not specifically mention Bitcoin or other cryptocurrencies being included in the sovereign wealth fund, it is speculated that the fund might hold the United States’ Bitcoin assets.
This could potentially lead to the creation of similar funds that allow Bitcoin purchases.
The US Treasury and the Commerce Departments are in charge of the sovereign wealth fund, according to Trump’s order.
Treasury Secretary Scott Bessent has shown some interest in digital assets, while Commerce Secretary nominee Howard Lutnick is a vocal supporter of the sector.
Lutnick, who is also the CEO of trading firm Cantor Fitzgerald, expressed his support for cryptocurrencies, particularly Bitcoin, in a CNBC podcast last year.
Bitcoin Price Analysis
Prominent analyst Ali Martinez noted on X (formerly Twitter) that the MVRV Momentum indicator shows that Bitcoin has remained in negative territory since the start of the year, indicating potential weakness.
In the past week alone, the digital asset has dropped by a significant 4.31%, but it has risen by 129.95% in the last year.
The Relative Strength Index (RSI) for Bitcoin is at 45.72, according to a chart provided by TradingView, suggesting that the bears are currently controlling the digital asset’s price movement.
The trend line indicates that Bitcoin might soon enter oversold levels, and a retest of lower levels could be likely.
Meanwhile, the Moving Average Convergence/Divergence indicator is also bearish, with the MACD line (blue) moving above the signal line (red) while the MACD histogram remains red.
The two lines are diverging from each other, indicating a substantial increase in sellers.
