ChainCatcher news, according to the International Business Times, U.S. Representative Gerald Connolly, a Democrat from Virginia, is pressuring the U.S. Treasury to halt plans to establish a strategic Bitcoin reserve. In a letter to Treasury Secretary Scott Bessent, Connolly pointed out that the plan, issued by Trump through an executive order, has "obvious conflicts of interest" and provides "no clear benefit to the American people."As a senior Democrat on the House Oversight and Government Reform Committee, Connolly questioned the necessity of establishing a Bitcoin reserve, noting that the U.S. has historically created strategic commodity reserves through "congressional legislation" rather than investing in the highly volatile cryptocurrency market. He also emphasized that the reserve would benefit Trump and his family and allies, rather than American taxpayers.

ChainCatcher News, House Oversight and Government Reform Committee Democratic leader Gerald Connolly urged the U.S. Treasury to halt plans to create a strategic cryptocurrency reserve, following President Donald Trump's pursuit of establishing a national Bitcoin reserve and personal cryptocurrency reserves.On Thursday, the Virginia Democrat pointed out in a letter to the Treasury that Trump's push for a reserve presents a "clear conflict of interest." Gerald Connolly stated that Trump did not consult Congress and did not "seek congressional authorization" to establish the reserve. The letter stated, "Establishing a strategic cryptocurrency reserve would come at the expense of American taxpayers, enriching the president and his closest allies. I urge you to stop all plans to establish a strategic cryptocurrency reserve and request a briefing for the staff of the Oversight and Government Reform Committee."

ChainCatcher news, according to the Financial Times of the UK, the cryptocurrency executive order ultimately signed by the Trump administration differs significantly from its previous social media messaging. According to the latest executive order, the U.S. will establish a "strategic Bitcoin reserve" and a "digital asset repository," but the source of funds is limited to tokens obtained through "criminal or civil asset forfeiture proceedings," rather than market purchases.The report points out that Bitcoin "will be held as a reserve asset," meaning it will be permanently retained, while other tokens (including Ethereum and possibly XRP, SOL, and ADA) can be sold but not purchased. This is in stark contrast to the image previously suggested by Trump of a "Congress-approved, well-funded last buyer."The Financial Times analysis believes that this plan will convert about 200,000 Bitcoins from temporary freezes to permanent freezes, while creating selling pressure on all other tokens like Ethereum. Compared to last year's discussions of a "crypto sovereign wealth fund capable of repaying national debt," this resembles more of a "bait-and-switch."

ChainCatcher News: U.S. President Donald Trump signed an executive order on Thursday to establish a digital asset reserve, retaining Bitcoin (BTC) and altcoins seized in law enforcement actions without making new purchases. The lack of new purchases means that, for the time being, the so-called reserve is merely a strategic reserve and will not inject any buying pressure into the market. Deribit data shows that traders are feeling disappointed and have started to chase short-term put options on BTC, ETH, and SOL.

ChainCatcher news, according to The Block, Bitwise Chief Investment Officer Matt Hougan stated that the market's reaction to Trump's cryptocurrency reserve plan is "overinterpreted." Despite the flaws in the plan, it is still overall positive news. After Trump announced on Sunday the directive for a task force to advance the U.S. cryptocurrency strategic reserve plan, which includes BTC, ETH, XRP, SOL, and ADA, these assets rose by 10%, 15%, 25%, 30%, and 70% respectively from last week's lows, but subsequently, Bitcoin fell over 10%, and Ethereum plummeted over 15%.In a report sent to clients on Tuesday, Hougan pointed out that the market's cautious stance on the plan is mainly due to the inclusion of cryptocurrencies other than Bitcoin in the reserves, "especially the inclusion of speculative assets like Cardano, which feels more like a political consideration rather than a strategic choice." He emphasized that the market is overlooking three key factors: first, Trump's negotiation style means that the initial proposal will not be the final version; second, this move by the U.S. could trigger a global Bitcoin accumulation race; and finally, once acquired, these cryptocurrencies are likely to be held long-term without being sold.Bitwise CEO Hunter Horsley, Coinbase CEO Brian Armstrong, and Gemini founders the Winklevoss twins share the same view, believing that a pure Bitcoin reserve is the best option. Hougan expects that the Trump administration will ultimately push for some form of reserve plan, "The U.S. government's announcement that cryptocurrencies have 'strategic' significance is positive in itself, and I believe the market will eventually realize this."

ChainCatcher news, QCP Capital's latest analysis points out that the brief market rebound following Trump's announcement of a cryptocurrency reserve plan on Truth Social on Sunday quickly faded, with risk assets generally pulling back and erasing most of Sunday’s gains. Trump's renewed push for tariffs on Canada, Mexico, and China intensified the sell-off, reinforcing investors' concerns about escalating trade tensions.The analysis indicates that the unexpected inclusion of XRP, SOL, and ADA tokens in the reserve plan has sparked divisions within the crypto community, with initial optimism about the project's advantages shifting to a more in-depth examination. Current doubts mainly focus on potential contradictions between the plan and DOGE cost-cutting measures, as well as the lack of transparency regarding the sources of reserve funds.QCP Capital states that this market decline may exacerbate the pressure Trump faces, especially after receiving strong support and donations from the crypto community during his campaign. Even the U.S. Securities and Exchange Commission (SEC) suspending and withdrawing enforcement cases against crypto companies has failed to stop the market sell-off, highlighting a broader risk-averse sentiment.The report notes that after a month of low cross-asset volatility, market anxiety has resurfaced due to the prospect of tariff confrontations potentially suppressing global growth. This shift is reflected in the 10-year U.S. Treasury yield dropping 50 basis points over the past two weeks, the VIX surpassing 22, and Bitcoin's short-term volatility sharply rising by 8 points since the weekend, with a significant skew towards bearish options.Previous news, Trump's launch of a cryptocurrency strategic reserve may be aimed at boosting approval ratings, with the market focusing on Friday's White House cryptocurrency summit.

ChainCatcher news, according to BTCTN, Jan3 CEO Samson Mow has issued a warning regarding the cryptocurrency reserve plan proposed by Trump, pointing out that if the plan includes random altcoins, it could lead to chaos.Mow stated that if the reserve plan recklessly mixes various cryptocurrencies such as XRP, SOL, ADA, and ETH, it could reduce it to a purely speculative game. He is particularly concerned about the risk of market manipulation, believing that if Trump can choose any cryptocurrency at will, it would create opportunities for lobbyists and insiders.Mow indicated that a real strategy should prioritize proof-of-work assets like BTC, LTC, and XMR. He warned that if Trump's cryptocurrency reserve goes off track, it could push the United States towards "unprecedented degradation."

ChainCatcher news, according to The Block, Standard Chartered's Head of Digital Assets Research Geoff Kendrick stated that the cryptocurrency reserve strategy announced by Trump provides long-term stability for Bitcoin, bringing renewed attention to his previously predicted target of $500,000.Kendrick noted in an investor report: "We have shifted from selling on rebounds to buying on dips, so I am refocusing on the $500,000 target for Bitcoin." He predicts that Bitcoin will reach $200,000 by the end of 2025, $300,000 by the end of 2026, $400,000 by the end of 2027, and $500,000 by the end of 2028, potentially maintaining that level until the end of 2029.Kendrick also emphasized the strategic importance of Trump's cryptocurrency reserve plan, believing it could encourage U.S. states to develop their own Bitcoin reserve plans, potentially holding a quantity of Bitcoin comparable to that of the federal government (around 200,000 coins). He stated: "Trump's announcement of the crypto reserve eliminated the possibility of 'bad outcomes' and created space for the crypto market to begin to rise."

ChainCatcher news, according to The Block, investment bank TD Cowen expressed caution regarding the "crypto strategic reserve" plan announced by U.S. President Trump on Sunday, stating that the plan lacks coordination and does not clarify the source of funding.The TD Cowen Washington research team noted in a report released on Monday: "We advise against overreacting to this social media post. The initial version did not even include Bitcoin and Ethereum in the reserve scope, indicating that the plan has not been fully coordinated." The research team also emphasized that Trump did not discuss how the government would acquire funds to purchase these tokens, raising questions about the feasibility of the plan.Meanwhile, the White House's first cryptocurrency summit is scheduled for this Friday, hosted by crypto mogul David Sacks, with Trump set to speak, and key industry figures and investors expected to attend. TD Cowen stated: "This summit is important and will reveal how the Trump team intends to advance legislation on stablecoins and the structure of the crypto market."

ChainCatcher news, Aurelie Barthere, the chief research analyst at blockchain analytics firm Nansen, stated that the rise may be temporary due to the lengthy approval process required to establish a U.S. cryptocurrency reserve: "I think building reserves by purchasing new tokens is a complex process that requires a congressional vote, so it takes time. I'm a bit concerned about the sustainability of today's initiative."

ChainCatcher news, Nasdaq-listed company Oxbridge Re Holdings Limited announced that it has chosen Coinbase Prime to support its purchase and secure custody of Bitcoin and Ethereum, as well as other potential cryptocurrencies as treasury reserve assets.Previous news, Oxbridge Re Holdings Limited announced that its board of directors has approved the decision to include Bitcoin and Ethereum in its corporate reserve assets. This decision reflects its strategy of diversifying financial assets while exploring inflation-resistant assets with long-term growth potential, such as Bitcoin, Ethereum, and other potential cryptocurrencies.

ChainCatcher news, QCP Capital's latest analysis points out that Bitcoin has fallen below $100,000 along with other risk assets, mainly influenced by the ongoing fallout from Deepseek-related news since the weekend. The analysis suggests that Deepseek's breakthroughs in cost efficiency and open-source technology may pose a threat to the United States' AI dominance. Trump has previously successfully used tariffs to force Colombia to accept the repatriation of immigrants, and the market is paying attention to the measures he may take in response to AI competition. QCP Capital states that Bitcoin is unlikely to break through the current range until a national strategy for Bitcoin reserves is confirmed. The Trump administration's assessment of "national digital asset reserves" has not been sufficient to maintain market optimism. The options risk reversal indicator shows that bullish sentiment is concentrated after March. As Deepseek poses a threat to the U.S. market, Trump may take action to stabilize the market. Ahead of the January 30 FOMC meeting, market volatility and VIX remain high, but QCP Capital expects Bitcoin to maintain relative resilience.

ChainCatcher news, Derive founder Nick Forster stated in an analyst report on January 25 that the Trump administration's executive order is focused on assessing digital asset reserves rather than concentrating on a strategic reserve of Bitcoin, which has suppressed short-term bullish expectations for Bitcoin. "The market believes that the upside potential for this asset is limited in the short term, possibly due to the lack of a specific BTC reserve announcement."Forster pointed out that on January 24, 83.3% of the Bitcoin options contracts on the Derive platform were "call options sold," indicating expectations that Bitcoin prices will remain stable or decline. He said, "Without practical measures like establishing a national reserve, the market will not buy it."

ChainCatcher news, Riot Platforms Vice President of Research Pierre Rochard pointed out that the biggest obstacle to the Bitcoin Strategic Reserve (SBR) plan does not come from the Federal Reserve, the Treasury, banks, or Elizabeth Warren, but from Ripple/XRP. Ripple is spending millions of dollars on lobbying efforts to try to obstruct the advancement of the U.S. Bitcoin Strategic Reserve (SBR) plan.Ripple CEO Brad Garlinghouse countered that the company's actions are actually increasing the likelihood of implementing a strategic reserve that includes Bitcoin, aligning with Trump's campaign promise to support American businesses and technology. Pierre questioned whether Garlinghouse himself genuinely holds XRP, implying that he is only selling the tokens. Pierre also pointed out that Ripple had previously targeted the Bitcoin mining industry during the Biden administration using similar tactics, aiming to promote a CBDC based on its platform.

ChainCatcher news, Bitcoin mining company MARA Holdings CEO Fred Thiel stated on the X platform that they are working to bring their strategic Bitcoin reserve plan to all 50 states and the federal government in the United States.

ChainCatcher news, according to Cointelegraph, Moneycorp's Head of Trading and Structured Products Eugene Epstein stated in an interview: "We have experienced cyclical bull markets in cryptocurrency before, but I remember this is the first time the hype is really happening at the government level. So far, there has just been a lot of talk, but in terms of acceptance, this is still the furthest cryptocurrency has ever gone."The United States is already the largest sovereign holder of Bitcoin, primarily from judicial seizures. According to data from Bitbo, the country holds over 200,000 Bitcoins, equivalent to nearly $22 billion.Epstein noted that trading in the cryptocurrency market is based on the expectation that the U.S. will make significant purchases in the future. The market has already priced in the large-scale purchases of cryptocurrency by governments at all levels in the U.S., and if those expectations are not met, there could be a pullback: "Unless some kind of state-level program really starts to be implemented, I find it hard to see the market go up; I expect this will be led by the Treasury."

ChainCatcher news, the CEO of the cryptocurrency data analysis platform CryptoQuant, Ki Young Ju, stated on social media that although he is not a Bitcoin extremist, he believes that the U.S. strategic digital asset reserve plan is too broad and suggests retaining only Bitcoin.