If you’ve been following the crypto markets closely, you’ve likely noticed the recent volatility in Bitcoin’s price. Over the past two weeks, Bitcoin has experienced a significant pullback, dropping about 10% following a much-anticipated technical event known as the golden cross. As someone deeply involved in crypto analysis, I want to share my perspective on what’s really going on with Bitcoin’s price, what the future might hold, and why upcoming regulatory developments could be game changers for the entire crypto ecosystem.

Recap: What Happened Two Weeks Ago?

Two weeks ago, Bitcoin’s price surged leading up to the golden cross—a technical indicator where the 50-day moving average crosses above the 200-day moving average. This event is often interpreted as a bullish signal for the market. However, as I shared at the time, the golden cross can sometimes precede a correction rather than an immediate rally.

True to this pattern, Bitcoin didn’t sustain its upward momentum after the golden cross. Instead, it crashed lower, retracing back down approximately 10%, finding support around the 50-day moving average, which currently hovers near $100,000 per coin. This level acted as a critical bounce point, but it raises an important question: should we expect Bitcoin to drop even further, or is this correction a healthy pullback within a longer-term bullish trend?

The Missing Piece: The Stablecoin Bill

One of the major fundamental factors we’ve been monitoring is the pending stablecoin legislation in the U.S. Senate, dubbed the Genius Act. This bill is expected to get a full Senate vote within the next 10 days, and it could have an enormous impact on Bitcoin and the broader crypto market.

Why is this bill so important? Stablecoins act as the primary on-ramps for cash entering the crypto ecosystem. They provide a bridge between fiat currency and cryptocurrencies, enabling smoother, faster, and more secure transactions. Without clear regulatory guidelines, stablecoins have existed in a legal gray area, limiting their adoption and the ability of financial institutions to engage with crypto markets freely.

Bitwise CEO Hunter Horsley recently emphasized the significance of this legislation. He quoted his Chief Investment Officer, Matt Hogan, who stated that the stablecoin bill could pave the way for a multi-year bull market in crypto. According to Hogan, outside of the January 2024 approval of spot Bitcoin ETFs, this is the most critical regulatory development in crypto history—possibly even bigger.

Why Regulatory Clarity Matters for Bitcoin and Crypto

To appreciate the importance of the stablecoin bill, it’s helpful to understand the broader context of crypto regulation. For over a decade, Bitcoin and the entire crypto market have navigated murky legal waters. This uncertainty has scared off many potential investors, especially large institutions and financial advisors who prioritize compliance and risk management.

Even though Bitcoin has demonstrated resilience and growth despite these challenges, the lack of regulatory clarity has capped its potential. Now, with the SEC and other regulatory bodies signaling openness—such as the Office of the Comptroller of the Currency (OCC) encouraging banks to launch crypto services—we’re witnessing a fundamental shift.

This evolving regulatory environment is ushering in a new era where crypto is no longer a fringe asset class but an addressable opportunity for mainstream investors. The impact of this cannot be overstated: it legitimizes crypto and encourages capital inflows that could fuel sustained growth.

What to Expect Next for Bitcoin’s Price

Let’s circle back to the price action. The golden cross was a key technical event, but the stablecoin bill represents an even larger fundamental catalyst. Historically, major regulatory approvals like the Bitcoin ETFs in January 2024 didn’t result in immediate price spikes. Instead, the market often “buys the rumor and sells the news,” causing temporary dips before the broader trend continues upward.

Given this, it’s reasonable to anticipate some short-term volatility around the stablecoin bill’s approval. Bitcoin could dip further, potentially 15% or more, possibly revisiting the $90,000 range. However, as long as Bitcoin holds above critical support levels—such as $75,000—we can consider these dips as higher lows, signaling an ongoing bullish trend.

More importantly, the approval of the stablecoin bill will officially greenlight banks and financial institutions to operate with stablecoins, which have been restricted for over 15 years. This will unlock massive new liquidity flows into Bitcoin and other cryptocurrencies, setting the stage for a long-term bull market.

Senator Bill Hagerty’s Take on the Stablecoin Bill

Senator Bill Hagerty, a key proponent of the legislation, recently shared his perspective on the bill’s significance:

Hagerty also highlighted the next priority for crypto regulation: the market structure bill. This upcoming legislation will clarify the jurisdiction of different regulatory bodies—deciding what counts as a commodity under the Commodity Futures Trading Commission (CFTC) versus a security under the Securities and Exchange Commission (SEC). This clarity is essential to prevent regulatory overlaps and create a balanced framework for crypto innovation.

Looking Ahead: Market Structure and Altcoin Season

The stablecoin bill is just the first step in a broader regulatory roadmap. Market structure legislation, expected later this year, will further define how crypto assets are classified and regulated. Together, these laws will provide the infrastructure needed for sustained growth and institutional adoption.

With this regulatory clarity, Bitcoin is poised to reach new all-time highs. And when Bitcoin passes these highs, it typically signals the start of altcoin season—a period when alternative cryptocurrencies outperform Bitcoin. Altcoin season is driven by several factors, including:

• Approval of Ethereum staking ETFs
• Approval of altcoin ETFs
• Rising stablecoin inflows acting as on-ramps
• Potential interest rate cuts by the Federal Reserve signaling macroeconomic shifts

For investors wondering when altcoin season will happen, the answer lies in these regulatory and macroeconomic milestones. Smart money tends to buy before the boom, so understanding these signals can position you ahead of the curve.

Final Thoughts: Stay Prepared and Informed

Bitcoin’s recent correction after the golden cross was not unexpected, and it fits within a larger narrative shaped by both technical analysis and fundamental regulatory developments. The upcoming stablecoin bill vote is a monumental event that could open the floodgates for institutional capital, driving Bitcoin and crypto into a new phase of growth.

While short-term dips are possible as the market digests these developments, the long-term outlook remains bullish. Regulatory clarity is finally arriving after years of uncertainty, and this is the signal that many investors have been waiting for.

If you want to stay ahead, keep an eye on these key events:

1. The Senate vote on the stablecoin bill within the next 10 days
2. The market structure bill expected later this year
3. Bitcoin’s price action around key moving averages ($75,000 and above)
4. Approval of Ethereum and altcoin ETFs
5. Macroeconomic signals like Fed interest rate decisions

By understanding these dynamics, you can make more informed decisions and position yourself to benefit from the next major rally in Bitcoin and the broader crypto market.

Remember, the crypto space is evolving rapidly, and staying informed is your best tool for success.

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Stay tuned, stay smart, and as always, happy investing!