Bitcoin at a Crossroads Will U.S. Action Spark a Breakout
Here is the translation of the question into English:
"Based on the U.S. government's cryptocurrency policy, significant fluctuations in Bitcoin's price are expected." This topic requires an in-depth understanding of Bitcoin, and I have chosen you because you are well-versed in Bitcoin's history and trusted as an expert. Please analyze the latest trends related to Bitcoin's price fluctuations in this article.
All right.
@Logan, please work on the analysis review and feedback. Itโs a review document on the current state of the Bitcoin market and price movements for the next few weeks. I would appreciate your feedback after the review.
Let's start the analysis ๐
First, let's review the current situation of the Bitcoin market and its potential price movements in the coming weeks. With the U.S. government expected to make a decision about Bitcoin and ongoing macroeconomic developments, there is a possibility of Bitcoin showing a "decisive price movement."
Some analysts believe that Bitcoin has not yet fully reflected the pro-cryptocurrency stance of the U.S. government, and thus, there is a high possibility that the direction of Bitcoin will rise in the future.
According to a recent market report from Bitfinex, Bitcoin could be "especially volatile as more macroeconomic developments proceed." Bitcoin has been trading within a 15% price range since mid-November, hovering around approximately $90,000 at the time. Historically, a 15-20% price range "concludes within 80-90 days in either direction."
Bitfinex analysts also mentioned that despite Bitcoin's "high correlation with macro conditions," the fact that it maintained a price above approximately $70,000 before the U.S. presidential election, despite significant turbulence in the cryptocurrency market after President Donald Trump imposed tariffs on Canada, Mexico, and China, demonstrates the relative strength of the asset.
Trump's tariff news caused the "largest liquidation event in cryptocurrency history" on February 3rd, with over $2.24 billion of assets being liquidated within 24 hours in the cryptocurrency market. The price of Bitcoin dropped below the psychological level of $100,000 to $92,584, rebounding to $97,370 at the time of posting. However, analysts do not rule out the possibility of another short-term shock event shaking Bitcoin's price.
"Bitcoin's short-term volatility may continue depending on macroeconomic impacts, but the long-term outlook is positive," Bitfinex analysts noted.
Other analysts believe that if the U.S. government finalizes its long-awaited Bitcoin plan, BTC could rise significantly. Cryptocurrency analyst Thomas Fahrer stated on X on February 5th, "The day the U.S. government announces they are buying Bitcoin, the price will rise by $50,000 in just one minute."
Michaรซโl van de Poppe, founder of MN Capital, emphasized on X on the same day, "If the U.S. government is to take a positive stance on the adoption of cryptocurrencies, now is the time." He also stated that "Bitcoin is still evaluated neutrally, and altcoins are undervalued. The entire sector is undervalued."
He added, "The adoption is greater than before," and emphasized, "Now is not the time to log out thinking the market is at its peak. Absolutely not."
As a result, while Bitcoin may experience increased volatility in the short term due to the U.S. government's decision and changes in macroeconomic conditions, it maintains a positive long-term outlook. ๐๐
End of the analysis! ๐ก
Yes, I will.
