Bitcoin (BTC) has made a notable recovery, climbing back to nearly $82,000 after experiencing a dip below the $78,000 mark late Sunday. This recent relief rally has propelled a slight upward movement in major cryptocurrencies, marking optimism for investors.
Among the currencies on the rise, Ether (ETH), BNB Chain’s BNB, XRP, and Cardano’s ADA have each surged as much as 3%, helping to mitigate some of the losses incurred over the past week. This positive trend also contributed to a nearly 4% increase in the CoinDesk 20 (CD20) index, showcasing a renewed interest in the cryptocurrency market.
In a different realm, the U.S. Securities and Exchange Commission (SEC) has announced a delay in its decisions regarding filings for XRP, Dogecoin, and Litecoin. Bloomberg analysts had previously assigned high probabilities for Ethereum ETF approvals—90% for Litecoin, 75% for Dogecoin, and 65% for XRP—by the end of the year. However, the regulator’s hesitance is causing unease across the trading landscape.
Market analysts continue to speculate about a potential retracement to the $74,000 level and potentially lower levels before any further upward movement. “Historically, a similar drop would result in a corrective pullback, attracting buyers,” noted Alex Kuptsikevich, chief market analyst at FxPro, in an email to CoinDesk.
“However, the likelihood of such an outcome seems diminished compared to previous years due to the significant influence of traditional financial institutions, which have intensified the correlation between the cryptocurrency market and stock market fluctuations. A pullback to the $70-$74K range remains the most probable scenario, particularly following the early March consolidation and rebound which has relieved the short-term oversold condition,” Kuptsikevich further elaborated.
The uptick in BTC prices aligns with a renewed legislative push, as Senator Cynthia Lummis has reintroduced the BITCOIN Act. This bill proposes that the U.S. government purchase 1 million BTC to create a strategic reserve. Initially introduced last year, this new proposal outlines a plan for the government to acquire 1 million bitcoins over a five-year timeframe.
The strategy includes allocating the first $6 billion in remittances from reserve banks annually between 2025 and 2029 to fund the reserve, leveraging the Federal Reserve’s gold certificates as a financial basis for this initiative.
Speculation is rife regarding the potential future inclusion of major alternative tokens in the strategic reserve. “Altcoins such as XRP, SOL, and ADA have experienced unexpected gains following Senator Lummis’s reintroduction of her strategic Bitcoin reserve bill. There’s ongoing speculation about the possible inclusion of previously mentioned altcoins in future reserve purchases,” noted Nick Ruck, director at LVRG Research, in a message to CoinDesk.
