Bitcoin (BTC) fell to $94,500 yesterday after Microsoft shareholders decisively rejected a Bitcoin treasury proposal to allocate 1% of the company’s total assets to buy BTC as an inflation hedge. However, analysts are still confident of further appreciation of the BTC price.

Bitcoin May Surge As High As $275,000

According to data from Coinglass, over $478 million worth of contracts – primarily long positions – were liquidated in the past 24 hours following the plunge in BTC and other cryptocurrencies. Interestingly, liquidation volumes were higher in altcoins compared to Bitcoin.

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However, some analysts view this price dip as a buying opportunity. Seasoned crypto analyst Ali Martinez took to X to highlight a long cup and handle pattern forming on Bitcoin’s weekly chart.

For those unfamiliar, the cup and handle pattern is a bullish technical formation that resembles a rounded “cup” followed by a brief consolidation period or “handle.” It typically signals the potential for a continuation of an uptrend, often leading to significant price gains.

Martinez noted that the pattern suggests Bitcoin could surge as high as $275,000, based on its technical structure. However, he also urged traders to exercise caution and avoid overleveraging their positions.

On the other hand, prominent crypto analyst @Trader_XO warned that Bitcoin must maintain its support at $90,000 to avoid further downside. Should BTC lose this critical level, it could drop as low as $85,000. Conversely, holding above $90,000 would allow the cryptocurrency to rebound and resume its uptrend.

BTC Takes Another Jab At Breaking Through $100,000

Despite yesterday’s dip, Bitcoin recovered swiftly, trading near $100,000 at the time of writing. The flagship cryptocurrency has remained in an overall uptrend, likely bolstered by today’s US inflation data for November, which largely aligned with market expectations.

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Bitcoin recently hit a new all-time high (ATH) of $103,679, according to data from CoinGecko. However, its price has fluctuated above and below the pivotal $100,000 mark, leading to over $1.5 billion in liquidations in the past week.

Several factors could drive Bitcoin’s price to a new ATH. For instance, BTC reserves on cryptocurrency exchanges have hit multi-year lows, reflecting rising demand for the digital asset.

American financier and former investment banker Anthony Scaramucci recently predicted China might establish its own Bitcoin reserve if the US proceeds with its strategic Bitcoin reserve plans. National BTC reserves are expected to reinforce Bitcoin’s supply scarcity narrative, potentially driving prices higher.

At the same time, BTC adoption among corporations continues to rise, as Canadian video-sharing firm Rumble became the latest company to unveil a BTC treasury strategy. BTC trades at $100,453 at press time, up 4.1% in the past 24 hours.

Featured image from Unsplash, Charts from X and TradingView.com

A Russian lawmaker has suggested creating a national Bitcoin reserve to protect Russia’s financial stability amid ongoing geopolitical risks and international sanctions. Anton Tkachev, a deputy from the “New People” party in the State Duma, submitted an official appeal to Finance Minister Anton Siluanov, urging the establishment of a Bitcoin reserve similar to traditional state reserves that hold foreign currencies such as the US dollar and euro.

Bitcoin as an Alternative Reserve Asset

In his letter, Russian lawmaker Anton Tkachev highlighted the limitations of traditional foreign exchange reserves, which are vulnerable to volatility, inflation, and sanctions. These challenges, he argues, pose a risk to Russia’s financial stability.

He proposed Bitcoin as an alternative reserve asset, noting that digital currencies are not subject to the controls or financial systems of individual countries. This makes them more resilient in the face of geopolitical tensions. This move precedes an enonomist Peter Schiff motion projection that the Biden admin should sell all US government’s Bitcoin holdings.

“With limited access to international payment systems for countries under sanctions, cryptocurrencies like Bitcoin could become essential tools for global trade,” Tkachev wrote. He emphasized that Bitcoin’s decentralized nature makes it an ideal asset for Russia to store its reserves, enabling it to bypass traditional financial systems and avoid sanctions.

Russian Lawmaker Stance On BTC’s Growing Investment Appeal

Tkachev also pointed out Bitcoin’s strong investment performance in recent years, noting that the cryptocurrency reached a value of $100,000 in December 2024. He argued that Bitcoin’s high returns make it not only a stable store of value but also an opportunity for significant financial gain. Given this growth, Tkachev suggested that Russia could benefit from holding Bitcoin in its reserves, similar to the way nations hold gold or foreign currency reserves.

In line with this, companies like MicroStrategy, have already adopted Bitcoin as part of their investment strategy. MicroStrategy has been consistently purchasing Bitcoin, most recently acquiring 21,550 BTC for $2.1 billion in December. This brings its total holdings to over 423,000 BTC, further cementing the company’s commitment to Bitcoin as a long-term investment.

Similarly, Hut 8, a Bitcoin mining company, announced plans to raise $500 million through stock sales, with a portion of the proceeds earmarked for additional Bitcoin purchases.

Russia’s Cryptocurrency Strategy and International Trends

Russian lawmaker Anton Tkachev’s proposal aligns with Russia’s broader strategy to develop alternatives to traditional financial systems. The Central Bank of Russia is already preparing to launch an experiment to use cryptocurrencies in cross-border payments, aiming to facilitate international trade while bypassing Western sanctions. This initiative is part of a global trend where countries are exploring the potential of digital currencies to maintain economic stability.

Russia’s interest in Bitcoin as a reserve asset is also in line with broader international developments. In the United States, Senator Cynthia Lummis has introduced the “Bitcoin Act of 2024,” which proposes the creation of a national Bitcoin reserve to strengthen the U.S. dollar and increase the country’s influence in the global cryptocurrency market. Former U.S. President Donald Trump has also voiced support for a Bitcoin reserve, with some of his campaign promises including the idea of holding a strategic reserve of Bitcoin to further the U.S. economy’s resilience in the digital age.

While Russia’s proposal is still in the early stages, it reflects a growing trend among countries to explore Bitcoin as a strategic asset. Former Binance CEO Changpeng Zhao has speculated that countries like China could eventually create their own Bitcoin reserves, especially as global economic pressures continue to rise. He noted that smaller nations might be the first to adopt such a strategy, but larger economies could eventually follow suit.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.