Bitcoin Price Forecast: BTC hovers around $97,000 as crypto czar David Sacks evaluates US Bitcoin Reserve

Bitcoin (BTC) price hovers around $97,000 on Wednesday after falling 3.5% the previous day. BTC still shows signs of weakness, despite Trump’s crypto czar, David Sacks, announcing during the digital asset press conference that they would evaluate a Bitcoin Reserve. Moreover, the K33 report highlights that Bitcoin CME traders maintain a defensive position and suggests investors avoid leverage at any cost in February.

Bitcoin fails to hold $100,000 mark despite Trump’s administration’s to evaluate BTC Reserve

Bitcoin price faced a pullback in the early Asian trading session, reaching a low of $91,231, but quickly recovered its fall to close above $101,300 on Monday. However, BTC failed to hold the $100,000 mark despite Trump’s administration’s support for digital assets, declining 3.52% on Tuesday. 

During the same period, President Trump’s crypto czar, David Sacks, announced during the digital asset press conference that they would evaluate a Bitcoin Reserve. The press conference announced several frameworks and regulatory support for digital assets and stablecoins. At the time of writing on Wednesday, BTC hovers around $97,000.

Bitcoin CME traders maintain defensive position — K33 Report

A K33 “Ahead of the curve” report on Tuesday highlighted that BTC CME premiums remained soft throughout the week. According to the report, the BTC Open Interest (OI) declined further to sit at 166,475 BTC as of Monday’s close, the lowest CME OI recorded since November 5. 

CME BTC Futures Open Interest chart. Source: K33 Research

The graph below suggests that following last month’s roll, the term structure also indicates cautious behavior in farther-dated contracts, with daily next-month premiums hovering at 0.8%.

CME BTC Futures average daily next month premium chart. Source: K33 Research

The report states, “February mantra should be to avoid leverage at any cost.” As uncertainty and volatility escalate amid Trump’s favorable crypto regulations, a Bitcoin reserve may begin to take shape, yet market turmoil persists due to tariffs and broader economic instability.

Moreover, Bitcoin could expect volatility due to FTX’s upcoming repayments to creditors starting on February 18. The bankrupt exchange is set to begin repayment to creditors with claims under $50,000, particularly those in the Bahamas, with 9% interest per annum from November 11, 2022.

The exchange first filed for bankruptcy in November 2022 with an estimated debt of $11.2 billion. Payouts are expected to total up to $16.5 billion, while the exchange is raising additional funds by selling assets and investments in tech firms. This news is significant as it marks a crucial step in recovery for those affected by the FTX collapse in November 2022, generating considerable interest in the cryptocurrency community.

Bitcoin Price Forecast: BTC bears aim for $90,000 level

Bitcoin price faced a pullback in the early Asian trading session, reaching a low of $91,231, but quickly recovered from its fall to close above $101,300 on Monday. However, it failed to maintain its recovery and declined 3.52% on Tuesday. At the time of writing on Wednesday, it hovers around $97,500.

If BTC continues its correction, it could extend the decline to test its psychologically important level of $90,000.

The Relative Strength Index (RSI) on the daily chart reads 43, after being rejected from below its neutral level of 50, and points downwards, indicating strong bearish momentum. Moreover, the Moving Average Convergence Divergence (MACD) showed a bearish crossover on Friday, hinting at further correction ahead.

BTC/USDT daily chart

However, if BTC recovers and finds support around $100,000, it would extend the recovery to retest its Friday high of $106,012.