Bitcoin Slips Below $95K: What Could Spark the Next Crypto Frenzy?

Bitcoin Slips Below $95K: What Could Spark the Next Crypto Frenzy?

Bitcoin’s price has fallen below $95,000, extending a slow and uninspiring week for the world’s largest cryptocurrency. With no major catalysts in sight, traders are left wondering: What could reignite the market’s bullish momentum and push BTC back toward its all-time high of $109,000?

📉 Bitcoin’s Struggle Under $95K

Bitcoin (BTC/USD) is down nearly 15% from its January peak, as enthusiasm from the post-election rally fades. The market appears to be in a holding pattern, with low volatility and reduced trading activity indicating a wait-and-see approach from investors. The biggest question now is: What’s next for Bitcoin?

Two key factors could play a major role in shaping Bitcoin’s short-term trajectory:

📜 Upcoming US Crypto Legislation

One of the most anticipated developments is the upcoming White House legislation on crypto, expected to take shape in the coming weeks. Donald Trump’s administration, alongside crypto-friendly policymakers like David Sacks, is reportedly working on regulatory frameworks designed to legitimize and expand the crypto industry.

The details of this proposal could be a major price catalyst. A positive regulatory environment—favoring innovation and clear guidelines—could bring institutional investors back into the market and push Bitcoin to new highs. On the flip side, restrictive or uncertain policies could keep BTC prices suppressed.

🏷️ Inflation and Federal Reserve Policy

Macroeconomic data continues to have a significant impact on Bitcoin, and this week is no different. On Wednesday, the Federal Reserve is set to release minutes from its last meeting, shedding light on the central bank’s stance on interest rates and inflation.

The key factor to watch? Inflation trends. If consumer price data suggests inflation is moving toward the Fed’s 2% target, markets could interpret this as a sign that rate cuts are coming, which historically boosts Bitcoin and risk assets. Conversely, if inflation remains stubbornly high, hawkish Fed policy could trigger further BTC declines.

🔮 What’s Next for Bitcoin?

With Bitcoin testing the $95K level, the coming weeks will be crucial. If traders see favorable signals from Washington and inflation data, we could see renewed momentum that sends BTC back above $100K. If uncertainty persists, sideways action or further corrections could be on the table.

For now, all eyes are on regulatory developments and economic indicators—the two forces that could decide Bitcoin’s next big move.



Source: https://www.tradingview.com/news/tradingview:03964a8ef094b:0-btc-usd-bitcoin-slips-below-95-000-what-can-bring-back-the-crypto-frenzy/ 

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