Bitcoin’s recovery and SEC delays create market uncertainty, while legislative support boosts confidence - IcoHolder.
Bitcoin (BTC) has made a notable recovery, bouncing back to around $82,000 after briefly dipping below $78,000 on Sunday. This rebound has triggered a small rally across major altcoins, with Ether (ETH), Binance Coin (BNB), XRP, and Cardano’s ADA seeing gains of up to 3%, partially recovering some of the losses sustained in the previous week.
The U.S. Securities and Exchange Commission (SEC) has delayed decisions on multiple proposed exchange-traded funds (ETFs) for popular cryptocurrencies like XRP, Dogecoin (DOGE), and Litecoin (LTC). Bloomberg analysts had previously predicted high chances of approval by year-end, with estimates of 90% for Litecoin, 75% for Dogecoin, and 65% for XRP. However, the SEC’s delay has thrown doubt on these projections, leaving investors uncertain about the future of these ETFs.
Some market observers believe Bitcoin could experience a dip to the $74,000 range before a potential rebound. Analysts note that past pullbacks have often been followed by strong buying activity, driving price recoveries. This latest dip prediction has been influenced by the increasing involvement of traditional financial institutions, which has made Bitcoin prices more closely tied to stock market movements. Additionally, Bitcoin’s recovery in early March has reduced the oversold conditions, increasing the likelihood of another correction in the near future.
Bitcoin’s recent surge is also being fueled by renewed legislative support. Senator Cynthia Lummis has reintroduced the BITCOIN Act, which proposes that the U.S. government acquire 1 million BTC over five years as a strategic reserve. Lummis, who first introduced the bill last year, believes that Bitcoin is crucial not only as a technological innovation but also for maintaining America's financial leadership.
Under the proposed bill, the U.S. government would allocate the first $6 billion in remittances from reserve banks between 2025 and 2029 to purchase Bitcoin, with the reserves backed by the Federal Reserve’s gold certificates. The bill has also sparked speculation that other major cryptocurrencies could eventually be added to the reserve.
Following Lummis’ Bitcoin reserve proposal, altcoins like XRP, Solana (SOL), and ADA experienced stronger-than-expected gains, reflecting growing investor optimism around potential regulatory changes.
Bitcoin’s recent price movement reflects a complex interplay between bullish regulatory developments and ongoing market uncertainties. The excitement surrounding a possible U.S. Crypto Strategic Reserve has certainly bolstered confidence, but broader economic conditions continue to affect market sentiment.
As of the latest data, Bitcoin is trading at $82,299, up over 1% in the past 24 hours, though it remains 24% below its all-time high. Investors will be closely monitoring upcoming developments in both the regulatory and economic landscape to gauge Bitcoin’s next major move.
