Bitcoin at a Crossroads Will U.S. Action Spark a Breakout

2025-02-07 07:22

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Could the US government's actions lead to a major increase in Bitcoin's price?

What was the recent significant event in the cryptocurrency market related to Bitcoin?

Why are analysts optimistic about Bitcoin's long-term prospects?

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- Analysts Predict Bitcoin Price Movements - Bitcoin Chart Indicates Imminent Critical Move [Unblock Media] Bitcoin is at a critical juncture. With the U.S. government preparing to clarify its stance on cryptocurrencies, analysts predict a potential price hike for Bitcoin in the coming weeks.

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Bitcoin Permanent Holder demand is accelerating. Historically, this signals strong confidence and often precedes rallies.

12:46 AM · Feb 7, 2025

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The Bitcoin market has been fluctuating within a 15% price range since mid-November last year. Experts believe that these fluctuations signal a decisive move. According to the latest market report from Bitfinex, similar consolidation patterns in the past have resolved in 80-90 days. Despite market volatility caused by tariffs imposed by former President Donald Trump, Bitcoin is holding above the pre-election price of over $70,000. Investors are now waiting for clearer market trends. On February 3, the cryptocurrency market experienced one of the largest liquidation events in history. After Trump announced new tariffs on Canada, Mexico, and China, more than $2.24 billion worth of cryptocurrency assets were liquidated in 24 hours. Bitcoin's price temporarily dropped to $92,584, falling below the psychological $100,000 mark, but rebounded to $97,370 at the time of writing.

Some see this as temporary confusion, but others warn of another short-term market shock before a clear breakout. Beyond short-term fluctuations, analysts remain optimistic about Bitcoin's long-term outlook. A key catalyst could be the actions of the U.S. government. Cryptocurrency analyst Thomas Pazor predicted that if the U.S. government announces the purchase of Bitcoin, its price could rise by $50,000 in just one minute. Meanwhile, MN Capital's Michael van de Poppe expressed a similar view, stressing that policymakers need to act now. Adoption is increasing at an unprecedented rate, and many believe that the current valuations of Bitcoin and other cryptocurrencies are significantly undervalued. The next move for Bitcoin in the coming weeks will determine whether it will be a historic breakout or another episode of volatility.