Americas Crypto Daybook: Bitcoin's Upward Trend Loses Steam Ahead of Bessent's Confirmation Hearing

By Omkar Godbole (Times are in ET unless specified otherwise) The cryptocurrency market experienced a 24-hour bullish trend, driven by the soft US core inflation data released on Wednesday, which eased concerns about a hawkish Fed. However, this momentum has begun to slow down. Now that the inflation data is out, crypto traders are shifting their focus to President-elect Donald Trump's inauguration on January 20 and potential pro-crypto actions on his first day in office. Some predict that bitcoin will reach new heights by then, while others anticipate price swings of at least 10% in XRP, SOL, ETH, and BTC. On Polymarket, the likelihood of the US holding BTC as part of its strategic reserve has increased to 50% for the first time. Bitwise, a San Francisco-based crypto asset management firm, announced on X that it provided information about bitcoin ETFs to a nation-state, further supporting the narrative of sovereign BTC adoption. There is speculation that SEC commissioners Hester Peirce and Mark Uyeda may revive crypto policy discussions as early as next week. However, it is essential not to underestimate the significance and market impact of Treasury nominee Scott Bessent's confirmation hearing before the Senate Finance Committee, which begins at 10:30 am in Washington. Bessent is likely to face scrutiny on various topics, including dollar policy, tariffs, and fiscal sustainability. In his released remarks, Bessent expressed his desire to make the 2017 tax cuts permanent and ensure the dollar remains the dominant global reserve currency. He also stated that tariffs are a valuable negotiating tool. According to ING, if Bessent emphasizes the supposedly inflationary tariffs as a key tool, the dollar may rally. A renewed increase in the currency and Treasury yields could slow down BTC's gains, potentially introducing volatility into risk assets in general. Remain vigilant! Key Events to Watch Token Events Upcoming Conferences Token Talk By Oliver Knight Derivatives Positioning Market Trends Bitcoin Statistics Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs Spot ETH ETFs Source: Farside Investors, as of January 15 Overnight Flows Chart of the Day While You Were Sleeping In the Ether