Bitcoin’s riding a midweek high, up 3% to $105K, after the chief of the world’s most influential central bank gave crypto a nod (hesitatingly).
Banks can handle crypto clients… if they understand the risks, said Federal Reserve Chair Jerome Powell. But he did add that a proper regulatory framework from Congress would be “very constructive.”
One could read that as: the Fed won’t be standing in the way, but it’s also not rolling out the red carpet.
No more chokepoints
That was enough to send BTC as well as Ether and Solana higher, shaking off some of the sell-off that followed China’s AI-fueled DeepSeek drama.
Bitcoin has a history of bouncing on Powell’s words — remember when he called it “virtual gold” in December last year? That helped push it past six figures for the first time.
This shift in tone also follows the House’s probe into “Operation Choke Point 2.0,” the alleged Joe Biden-era crackdown that squeezed crypto out of the banking system.
Venture capitalist Nic Carter called Powell’s comments an “immense tonal shift,” stating that the operation is now officially dead.
The Biden administration, of course, denies it was ever real.
The stockpile stakes
Bitcoin’s bounce also comes as HODL fever spreads beyond crypto diehards. Pro-crypto Senator Cynthia Lummis is ramping up efforts for a national Bitcoin reserve and is pushing for public hearings on the idea.
It’s not just talk — states are getting in on the action. Illinois Rep. John Cabello introduced a bill allowing the state to accept Bitcoin donations and hold them for five years.
Texas Lt. Gov. Dan Patrick is pushing for a Texas Bitcoin Reserve as one of his top priorities.
A few thousand miles away, the Czech Republic’s central banking chief, Ales Michl, said he wants to hold up to 5% of its $145 billion reserve in BTC to “diversify” the central European country’s stash.
Next, where?
All this HODLing talk is nice, but until these reserves actually materialize, Bitcoin’s next moonshot isn’t guaranteed, says crypto trading firm QCP Capital.
“The Trump administration’s evaluation for a ‘national digital asset stockpile’ was not enough to sustain bullishness in the market, at least in the near term,” the firm says.
QCP pretty much echoed the sentiment that Trump’s much-hyped crypto executive order was… well… mid.
Still, Bitcoin’s back above $105K, and some bulls are betting on an all-time high next month. February has historically been good for Bitcoin, according to CoinGlass data.
Whether history repeats — or just rhymes — is the next big question.
Edited by Ankush Chibber. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
