The price of BTC has hit $120k and displayed a hammer-style candlestick that could hint at a near-term pause at that level. The previous highs now become a buying zone.
BTCUSD – Daily Chart
Bitcoin’s recent rise is happening as the U.S. House of Representatives considers a series of cryptocurrency bills this week that could give digital assets a new regulatory framework. Republican lawmakers have embraced crypto and digital assets following President Donald Trump’s pledge to make the U.S. the “crypto capital of the world”.
One of the key bills is the GENIUS Act, which would create federal regulatory rules for U.S. dollar stablecoins. That could lead to digital alternatives to the dollar being used by major banks. Other bills set for debate include the Digital Asset Market Clarity Act and the Anti-CBDC Surveillance State Act.
Another driver of the Bitcoin rally has been weakness in the U.S. dollar, while there has been a huge speculative push into ETFs and treasury holdings. That could make the rally volatile at these highs if the news cycle changes to negative. The U.S. dollar has had its worst start to a year since 1973 and that is driving assets higher across the board.
Spot Bitcoin ETFs saw inflows of $1 billion on Thursday last week and the BlackRock iShares ETF now holds $80 billion in assets under management. Retail mania can often mark the high in assets, and the price of BTC will continue higher on his sentiment until a negative event.
For the moment, there is an opportunity to ride the speculative wave in cryptocurrencies. Caution would be advised with the Congress votes, as even an approval could lead to a “buy the rumour, sell the fact” style pullback on profit-taking.
