Bitcoin Tops $90K As Ark’s Cathie Wood Says Trump Will Buy 1M BTC For US Strategic Reserve

Bitcoin price is recovering from a January 8 intraday drop that saw the asset plunge to within the $89,400 level. BTC has recovered by a fraction of a percentage in the last 24 hours, now trading at $90,878 as of 2:35 a.m. EST.

BTC is showing resilience in holding the $90,000 level, with news that Ark Invest founder Cathie Wood expects the Trump administration to buy $1 million in BTC for the US Strategic Reserve.

In a recent episode of the Bitcoin Brainstorm podcast, Wood argued that the federal government might soon start purchasing BTC to add to the national strategic reserve, which came into existence by executive fiat less than a week into Trump’s second term.

“It seems as though there has been reticence about actually buying Bitcoin for the strategy reserve. So far, it’s confiscated [bitcoins],” Wood said. “The original intent was to own 1 million bitcoins, so I actually think they will start buying.”

Wood also adds that there are various reasons why Trump is likely to continue supporting crypto, including his family’s growing stake in the industry’s success. She also stated that the crypto community was part of the reason why he won the presidency.

If the earlier intent is carried out in the coming year, we could see a jump in the BTC prices. But how far can Bitcoin surge?

Bitcoin Price Stabilizes Above Key Support as Momentum Gradually Rebuilds

According to the BTC price daily chart, Bitcoin is attempting to extend its short-term recovery after a strong rebound from the recent swing low near $80,500. This level acted as a critical demand zone, where buyers stepped in aggressively to halt further downside.

Since then, BTC price action has stabilized, with Bitcoin now trading around $90,800, reflecting cautious optimism among market participants.

The recovery gained traction once Bitcoin broke above the 50-day Simple Moving Average (SMA) at $89,242, a key resistance that had previously capped upside attempts. Clearing this level has improved short-term structure and opened the door to a potential rally toward the psychologically important $100,000 mark.

However, bulls still face barriers on the upside, starting with the 0 Fibonacci retracement level near $94,770, followed by the -0.272 Fib extension around $98,640, which could attract profit-taking pressure.

Meanwhile, the Relative Strength Index (RSI) on the daily timeframe shows that bullish momentum remains intact but moderated. After peaking near the 66 level, RSI has cooled to around 53.08, suggesting that buyers remain in control while avoiding overbought conditions.

BTC/USD Chart Analysis: TradingView

As long as Bitcoin remains above the $90,000 and the 0.382 Fib level ($89,015), the ongoing recovery could sustain a push toward $92,000 and higher. The next upside targets remain $94,770 and $98,640, with longer-term resistance near $103,562.

Data from CoinMarketCap indicates a 10% drop in trading volume to $37 billion, highlighting a drop in market activity. With market activity declining, BTC could pull back toward $89,200, aligning once again with the 50-day SMA.