Bitcoin has been trading within a narrow 15% price band since mid-November, maintaining its value above $90,000. However, such consolidation typically doesn’t last forever. According to analysts at Bitfinex, this range could break in either direction within the next few weeks, potentially leading to a significant price shift. This period of consolidation, historically, has been followed by a decisive movement in Bitcoin’s price—often within 80 to 90 days. As the US government signals its intentions toward cryptocurrency, the potential for an upward move has gathered increasing attention. Bitcoin’s recent resilience has added to this optimism. In fact, even during the chaos that followed US President Donald Trump’s tariff news —which led to the largest liquidation event in crypto history on February 3—Bitcoin held above its pre-US election price level of around $70,000. Bitcoin Holds Strong Amidst Macro Turmoil The turbulence sparked by President Trump’s tariff announcements resulted in over $2.24 billion in liquidations across the crypto market in just 24 hours, a stark reminder of the volatility that often accompanies macroeconomic news. Bitcoin’s price dropped briefly below the key $100,000 mark, falling to $92,584 before making a modest rebound to $97,370 at the time of writing. However, analysts caution that further volatility remains a possibility, especially in the short term. As Bitcoin continues to consolidate, there’s growing speculation that once the US government unveils its formal position on Bitcoin, the asset could experience a sharp upward movement. Crypto analysts are particularly vocal about this potential. Thomas Fahrer, a prominent crypto analyst, stirred the conversation on February 5 by suggesting that an announcement from the US government regarding its intent to purchase Bitcoin could trigger a massive price surge. “The day the US government announces they are buying Bitcoin, the price will go up $50,000 in a single 1-minute candle,” Fahrer wrote in an X post. This sentiment was echoed by MN Capital’s Michaël van de Poppe, who similarly stated that the timing was ripe for the US to embrace crypto, asserting that Bitcoin is “neutrally valued” and the entire market remains “criminally undervalued.” The Growing Importance of US Policy in Crypto’s Future Van de Poppe emphasized that the current period of market consolidation should not be mistaken for a peak. He believes that with the rising adoption of cryptocurrency, we are far from seeing the market’s true potential. “The adoption is bigger than ever,” he noted, adding that it’s an exciting time to be invested in digital assets. As these macroeconomic conditions evolve, Bitcoin’s next major move appears to hinge on two things: its response to short-term volatility and the clarity that will come from the US government’s stance on crypto . The post Bitcoin Poised for a Major Price Move as US Government’s Crypto Stance Looms appeared first on TheCoinrise.com .
