Bitcoin Price Analysis: BTC Struggles To Stay Above $120,000
Bitcoin (BTC) briefly crossed $120,000 during the ongoing session, reaching an intraday high of $120,800. However, it failed to sustain momentum and fell back, dropping to its current level of $118,970. The flagship cryptocurrency is marginally up over the past 24 hours.
The US House of Representatives cleared three crucial bills aimed at creating a clear regulatory framework for crypto, which has buoyed the market, as BTC and other cryptocurrencies trade in positive territory.
Not All Bitcoin Treasury Companies See Surging Stock Prices
The rapid growth of Bitcoin treasury companies shows that the asset has become a key part of the traditional financial system. However, while many firms hold BTC as a reserve asset, markets are taking into account how they hold it. According to a Nansen report, new regulatory standards and macroeconomic factors have changed how corporations view exposure to BTC. This change has led to the largest firms holding over 700,000 BTC. Companies like Strategy, Marathon Digital, Riot Platforms, Twenty One Capital, and Metaplanet collectively hold over $81 billion worth of BTC. Strategy holds the most substantial chunk of these Bitcoin holdings with 601,550 BTC.
However, not all of these companies register the same effect on their stock prices. While Strategy trades at nearly double the value of its Bitcoin holdings, Marathon Digital, with Bitcoin accounting for 85% of its market cap, trades at par with its Bitcoin reserves.
According to Nansen, this shows that markets care about how a Bitcoin treasury company structures its holdings. Strategy uses debt, which allows the company to consistently accumulate Bitcoin and act as a leveraged bet on its price. This gives the company’s stock greater upside, but also leaves it vulnerable to more volatility. As a result, Strategy’s stock has outperformed Bitcoin in the long term. Nansen stated in its report,
“Investors treat MicroStrategy akin to a leveraged Bitcoin ETF, amplifying exposure to Bitcoin price movements. Consequently, its stock typically exhibits 2–3× Bitcoin’s volatility.”
Regulatory Environment Pushing Bitcoin Higher
Bitcoin (BTC) is riding on optimism that a clear US regulatory framework will encourage wider adoption. Investor optimism has surged after the US House of Representatives passed the GENIUS Act, which will create a new regulatory framework for stablecoins. It also passed two other bills, the CLARITY Act, which aims to create a clear market structure for cryptocurrencies, and the Anti-CBDC Surveillance State Act.
Additionally, some reports have claimed that President Trump intends to sign an executive order to open up the retirement market to alternative investment avenues, including cryptocurrencies. Economist Mohit Kumar stated,
“The regulatory environment remains supportive, and we see further upside in crypto assets.”
However, White House spokesperson Kush Desai said nothing should be considered official unless it comes from President Trump himself.
“President Trump is committed to restoring prosperity for everyday Americans and safeguarding their economic future. No decisions should be deemed official, however, unless they come from President Trump himself.”
Satoshi-Era Whale Moves Final 40,191 BTC To Trading Desks
A long-dormant Satoshi-era whale has moved their entire Bitcoin stash of 80,000 BTC to trading desks, with the final tranche of 40,191 BTC moved to Galaxy Digital on Friday, likely indicating a potential sale. While sending crypto to exchanges or trading desks does not confirm a sale, large amounts such as this are typically held in cold wallets, which gives market watchers reason to believe a sale is imminent. Data from Arkham Intelligence shows that the coins were transferred to a Galaxy-labeled address across 15 transactions.
The Bitcoin whale, who acquired their stash over 14 years ago, began moving their Bitcoin on July 4, sending the tokens to a new wallet address. The whale moved 40,010 BTC to Galaxy Digital on Tuesday. The coins are being rerouted to Coinbase, Gemini, Bitstamp, and other addresses, suggesting potential offloading.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is struggling to reclaim $120,000 as sellers prevent a move higher. The flagship cryptocurrency has traded below this level since Tuesday, when it plunged to a low of $115,701 before settling at $117,682. The price recovered on Wednesday, rising to $118,641, and reached an intraday high of $120,812 on Thursday before settling at $119,101. The current session saw another push above $120,000 before the price declined to current levels.
BTC’s rally is taking a breather after Monday’s unprecedented push above $123,000. The flagship cryptocurrency reached an intraday high of $123,091 on Monday, but has failed to reclaim $120,000 since Tuesday’s decline. However, on-chain data suggests that the bulls are not ceding ground to the bears and have held their positions, prompting analysts to predict that the uptrend will resume. Spot Bitcoin ETFs have also continued their inflow streak, recording $799 million in inflows on Wednesday, their 10th successive day of inflows. Spot Bitcoin ETFs have registered inflows of over $5.2 billion since July 2.
Analysts attribute BTC’s recovery to the US House of Representatives clearing three key crypto bills aimed at creating a clear regulatory framework for the crypto industry. The landmark bills were approved on Thursday, setting the stage for a clear regulatory framework for digital assets. The key piece of legislation, the GENIUS Act, sailed through the House with a 308-122 vote in favor. The bill was approved by the Senate in June. The other bills that cleared the House are the CLARITY Act and the Anti-CBDC Surveillance State Act. The CLARITY Act defines whether cryptocurrencies fall under the jurisdiction of the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). Meanwhile, the Anti-CBDC Surveillance State Act prohibits the Federal Reserve from creating its own CBDC without prior approval from Congress.
BTC started the previous week in the red, dropping 0.88% to $108,273. It recovered on Tuesday, rising 0.62% to $108,942. Buyers retained control on Wednesday as the price rose over 2% to cross $111,000 and settle at $111,255. Bullish sentiment intensified on Thursday as the price rose 3.51%, crossing $115,000 and settling at $115,159. Price action remained positive on Friday as BTC rose 1.50% and settled at $116,885. Despite the positive sentiment, BTC lost momentum on Saturday, registering a marginal decline and settling at $116,616. The price recovered on Sunday, rising nearly 2% to cross $118,000 and settle at $118,624.
Source: TradingView
BTC raced past $123,000 on Monday, surging to a new all-time high of $123,091. However, it could not stay at this level and settled at $119,714, ultimately registering an increase of 0.92%. The price fell to an intraday low of $115,701 on Tuesday as selling pressure intensified. However, it recovered from this level and settled at $117,682, a drop of nearly 2%. BTC rose 0.82% on Wednesday 0.82% and settled at $118,641. The price reached an intraday high of $120,812 on Thursday. However, it could not stay at this level and settled at $119,101. The current session sees BTC marginally up, trading around $119,386.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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