In her X post, Lummis stated that a significant announcement would be made
today. The senator, who is well-known for her support of Bitcoin, was among the
first politicians in the United States to advocate for the creation of a
strategic reserve in the cryptocurrency.
This statement caused the price of Bitcoin to jump by more than 4.5% in a
single hour, which is significant for an asset with a market value of more than
$2 trillion.
It's interesting to note that Lummis's announcement coincided with the
cryptocurrency's price falling to the lowest point in the band of $101,300 to
$107,100 that it had been trading in for the previous few days.
Result
Journalist Eleanor Terrett claims that the senator ultimately failed to make
the announcement at 10:00 a.m., citing the Senate Banking Committee's impending
vote on Senator Lummis' appointment as chairman of the Subcommittee on Digital
Assets as the "big news." Terrett also said it's uncertain if any
other announcements will be made.
Because of this, the price of Bitcoin has undergone a severe reversal, dropping
from local highs of $106,000 to as much as 3.2% in the last 25 days. It's still
unclear if the Bitcoin Strategic Reserve will be revealed anytime soon.
However, it is clearly evident that these issues are not yet priced in.
However, it might be another instance of a phony Bitcoin ETF announcement. In
2023, following such an occurrence, there was a significant pump and dump of
the cryptocurrency, which ultimately led to a gradual increase in the price of
BTC as the market recognized that the ETF's approval was not yet factored in.
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