Bitcoin (BTC) managed to rebound to nearly $82,000, staging a relief rally after dropping below $78,000 late on Sunday, which spurred a slight increase in prominent cryptocurrencies.
Ether (ETH), Binance’s BNB, XRP, and Cardano’s ADA experienced increases of up to 3%, recovering some of the losses incurred over the past week. The broader CoinDesk 20 (CD20) index gained nearly 4%.
In other developments, the U.S. Securities and Exchange Commission (SEC) postponed its rulings on filings regarding XRP, Dogecoin, and Litecoin. Analysts had previously estimated a 90% likelihood of Litecoin and a 75% chance for Doge, while XRP was given a 65% chance for receiving ETF approval by year-end; however, the regulator’s hesitance is keeping the market in suspense.
Traders are still anticipating a potential dip to the $74,000 level, or even lower, prior to a prospective upward movement.
“Historically, a similar downturn would lead to a corrective pullback, drawing in buyers,” Alex Kuptsikevich, chief market analyst at FxPro, shared via email. “Nevertheless, the probability of such an occurrence is now diminished compared to past years due to the strong influence of traditional financial entities, which has bolstered the connection between the crypto market and stock movements. We believe that a pullback to the $70-$74K region is still the most likely scenario, especially since the consolidation and rebound observed earlier in March have alleviated the short-term oversold conditions,” Kuptsikevich added.
The rise in BTC coincided with Senator Cynthia Lummis reintroducing the BITCOIN Act, advocating for the U.S. to acquire 1 million BTC as a strategic reserve. This legislation, initially proposed last year, aims for the government to buy 1 million bitcoins over a five-year period.
The first $6 billion in remittances from reserve banks would be allocated annually between 2025 and 2029 to accumulate the reserve, relying on the Federal Reserve’s gold certificates.
There is speculation regarding the potential future inclusion of significant tokens in such a reserve.
“Altcoins like XRP, SOL, and ADA surged more than anticipated as pro-crypto Senator Lummis reintroduced her strategic Bitcoin reserve proposal to acquire 1 million Bitcoins, and there’s speculation that previously mentioned altcoins might be incorporated into the reserve buy,” Nick Ruck, a director at LVRG Research, mentioned in a Telegram message.