Bitcoin (BTC) has made a significant comeback, reclaiming nearly $82,000 after briefly dipping below $78,000 on Sunday. This relief rally has triggered a minor surge in major altcoins, with Ether (ETH), BNB Chain’s BNB, XRP, and Cardano’s ADA gaining as much as 3%, helping to offset losses from the past week. The CoinDesk 20 Index (CD20), a broad measure of the crypto market, added nearly 4% in value, signaling renewed investor optimism.
Bitcoin’s Price Action: A Temporary Bounce or Start of a Bigger Move?
Despite Bitcoin’s recovery, market sentiment remains cautious as traders still anticipate a pullback to the $74,000 level or lower before a potential push higher. According to Alex Kuptsikevich, Chief Market Analyst at FxPro, Bitcoin’s previous corrections have historically attracted strong buying pressure, leading to renewed uptrends. However, this time, traditional financial institutions wield a stronger influence, tightening Bitcoin’s correlation with stock market movements.
“The scenario of a pullback to the $70-$74K area still looks the most probable for us. This is all the truer as the consolidation and rebound in early March has taken the short-term oversold stance out of the market,” Kuptsikevich noted in an email to CoinDesk.
This cautious sentiment suggests that while Bitcoin’s rally is encouraging, a more substantial correction could still be in play before another leg up.
Altcoins React as SEC Delays ETF Decisions for XRP, DOGE, and LTC
The broader cryptocurrency market remains on edge as the U.S. Securities and Exchange Commission (SEC) recently delayed its decision on spot exchange-traded funds (ETFs) for XRP, Dogecoin (DOGE), and Litecoin (LTC). Previously, Bloomberg analysts had assigned a 90% probability for a Litecoin ETF approval by year-end, a 75% chance for Dogecoin, and a 65% chance for XRP. However, the SEC’s hesitation is creating uncertainty, leading to short-term volatility in these assets.
With the crypto industry pushing for greater institutional acceptance, the delay in ETF approvals raises concerns about regulatory roadblocks. Yet, despite these setbacks, the speculative interest in altcoins remains strong, particularly in assets that could benefit from broader institutional adoption.
Senator Cynthia Lummis Pushes for U.S. Bitcoin Reserve
One of the most significant developments fueling Bitcoin’s momentum is the reintroduction of the BITCOIN Act by U.S. Senator Cynthia Lummis. The bill proposes that the U.S. government acquire 1 million BTC as part of a strategic reserve over a five-year period, potentially reshaping Bitcoin’s role in national financial policies.
Under the bill’s framework:
- The U.S. would allocate $6 billion annually from reserve banks between 2025 and 2029 to fund Bitcoin purchases.
- The plan mirrors the U.S. Federal Reserve’s reliance on gold reserves, positioning Bitcoin as a modern equivalent to gold for national reserves.
- If passed, this initiative could significantly increase institutional demand for BTC, potentially reinforcing Bitcoin’s long-term price stability and growth.
Speculation Over Future Inclusion of Altcoins in Strategic Reserves
Following the BITCOIN Act’s reintroduction, speculation has emerged that major altcoins like XRP, Solana (SOL), and Cardano (ADA) could be included in future reserve purchases. According to Nick Ruck, Director at LVRG Research, these assets witnessed an unexpected surge following Lummis’ announcement.
“Altcoins such as XRP, SOL, and ADA pumped higher than expected as pro-crypto Senator Lummis reintroduced her strategic Bitcoin reserve bill to purchase 1 million Bitcoins, and there’s speculation that previously announced altcoins will later be included in the reserve purchases,” Ruck told CoinDesk.
The possibility of altcoins being recognized as strategic assets could drive institutional and government interest in these tokens, setting the stage for further price appreciation.
Key Levels to Watch for Bitcoin and Altcoins
While Bitcoin’s relief rally has provided some optimism, traders should monitor key support and resistance levels to assess the next phase of market movement:
- Immediate Support Levels:
- $78,000 (recent dip zone)
- $74,000-$70,000 (anticipated correction range)
- Resistance Levels:
- $83,500 (breakout target)
- $90,000 (psychological resistance)
- $100,000+ (next bullish milestone)
For altcoins, continued price action will depend on regulatory developments and Bitcoin’s overall market stability. If XRP, DOGE, and LTC ETFs receive approval later this year, they could experience strong upside momentum, reinforcing their place in institutional portfolios.
Crypto Market Poised for Volatility and Growth
Bitcoin’s rally back toward $82,000 highlights strong market resilience, but traders remain wary of another potential pullback to $74,000 or lower before the next bullish leg. Meanwhile, regulatory uncertainty surrounding crypto ETFs and growing institutional interest continue to shape the market’s long-term trajectory.
The BITCOIN Act’s reintroduction marks a significant milestone in Bitcoin’s mainstream adoption, with speculation growing about the potential inclusion of altcoins in future U.S. reserves. As the market navigates these critical developments, investors should closely monitor macroeconomic trends, regulatory shifts, and key technical levels to make informed decisions.
