Crypto News Today: BTC Nears $110K as Trump Bitcoin Reserve Odds Hit 60%, Analysts Warn of Potential Reversal

Bitcoin’s price surged to a new all-time high of $109,356 on Jan. 20, following heightened speculation surrounding President-elect Donald Trump's potential Bitcoin reserve policy. Data from Polymarket indicates a 60% probability that Trump may introduce a strategic BTC reserve within his first 100 days in office, fueling bullish momentum in the market.Traders Face Risks Amid New HighsData from Cointelegraph Markets Pro and TradingView confirmed Bitcoin's sharp rise, with daily gains exceeding 8%, pushing BTC past the $100,000 resistance level. However, market analysts are cautioning traders about potential downside risks.Crypto analyst Skew highlighted concerns regarding liquidity, warning that the market might be "front-running" the surge to create exit liquidity for early investors. Skew pointed to Binance order book data showing significant sell orders around $110K, which could trap latecomers at peak prices."Price is testing supply here, potentially front-running tomorrow to create exit liquidity," Skew noted in a post on X.Liquidations Spike Amid Bullish SurgeDespite the bullish breakout, data shows signs of market strain, with over $1 billion in long liquidations within the past 24 hours. Traders entering at record levels face increasing risks, with analysts suggesting the rally could reverse sharply if sell pressure builds.Market Speculation on Trump's Crypto PoliciesMarket participants speculate that Bitcoin’s current price action may be influenced by insider knowledge of the Trump administration’s potential pro-crypto initiatives. Reports suggest the administration could allocate BTC and select altcoins to a U.S. strategic reserve, further fueling optimism.Prediction platform Polymarket reflects growing confidence in this scenario, with the odds surpassing 50% on Jan. 20. Influential crypto figures, including hedgedhog, remarked that "someone clearly knows something" about Bitcoin's future under the Trump presidency.Will BTC Hit $110K?Analysts like IncomeSharks believe the breakout pattern is a strong signal of further gains. "Doesn’t get much cleaner than that," they noted, referencing Bitcoin's technical breakout from a month-long consolidation phase.However, with supply hurdles around $109K to $110K, Skew and other analysts are urging caution. As Bitcoin approaches these levels, significant ask liquidity could pose challenges for continued upside momentum.With Bitcoin edging closer to the psychological $110K mark, the market remains on edge, anticipating potential policy announcements from the incoming U.S. administration. Traders are advised to monitor liquidity and market sentiment closely in the coming days, according to Cointelegraph.