Bitcoin Price Predictions: What to Expect from Upcoming US Government Decisions
Bitcoin Price Predictions– Bitcoin is positioning itself for a “decisive price move” in the coming weeks, with analysts anticipating potential growth as the US government finalizes its approach to crypto. This follows several macroeconomic developments that could influence the market.
Bitcoin’s Price Consolidation: A Breakout Is Coming
According to Bitfinex analysts, Bitcoin has been trading within a 15% price range since mid-November, hovering around $90,000. Historically, such ranges typically resolve in either direction within 80 to 90 days. Despite recent volatility, Bitcoin has maintained its strength, staying above its pre-election price of $70,000.
In addition, analysts noted that Bitcoin’s correlation with broader macro conditions has been strong, but its resilience in holding above the $70,000 mark, even during the tumultuous period caused by US President Donald Trump’s tariffs, indicates its relative strength.
Macroeconomic Factors and Short-Term Price Swings
On February 3, a significant market event occurred when President Trump’s tariff news triggered the “largest liquidation event in crypto history,” with over $2.24 billion liquidated within 24 hours. Bitcoin’s price fell below $100,000, reaching $92,584 before rebounding to $97,370. Despite this short-term volatility, analysts predict Bitcoin’s long-term outlook remains positive.
Potential US Government Influence on Bitcoin’s Price Surge
The US government’s next move could have a substantial effect on Bitcoin’s price. Crypto analyst Thomas Fahrer shared his thoughts in a February 5 post, stating, “The day the US government announces they are buying Bitcoin, the price will go up $50,000 in a single 1-minute candle.”
Similarly, Michaël van de Poppe, founder of MN Capital, emphasized that now is a crucial moment for the government to embrace crypto. He mentioned in an X post, “Bitcoin is still neutrally valued, where the altcoins are criminally undervalued. The entire sector is criminally undervalued.”
As these developments unfold, Bitcoin’s price trajectory remains in focus for market watchers.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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