Bitcoin's Calm Amidst Market Turmoil: Awaiting US Government's Crypto Move

Bitcoin's volatility has remained relatively low despite recent market shakeouts, according to analysts who are closely monitoring the cryptocurrency's price action. This stability has been observed even as the broader market experiences significant turmoil, with over $2.24 billion in liquidations across the crypto market in just 24 hours following US President Donald Trump's tariff announcements.

Bitcoin has been trading within a narrow 15% price band since mid-November, maintaining its value above $90,000. Analysts at Bitfinex suggest that this range could break in either direction within the next few weeks, potentially leading to a significant price shift. Historically, such consolidation has been followed by a decisive movement in Bitcoin's price 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, with the cryptocurrency holding above its pre-US election price level of around $70,000 even amidst the chaos that followed Trump's tariff news.

Crypto analysts are particularly vocal about the potential impact of a formal US government position on Bitcoin. Thomas Fahrer, a prominent crypto analyst, suggested that an announcement from the US government regarding its intent to purchase Bitcoin could trigger a massive price surge. Michaël van de Poppe, founder of MN Capital, echoed this sentiment, stating that the timing was ripe for the US to embrace crypto and that Bitcoin is "neutrally valued" with the entire market remaining "criminally undervalued."

Bitcoin's price stability has been strengthened by key accumulation zones, as indicated by the cryptocurrency's Cost Basis Distribution (CBD) metric. Over the past month, nearly 200,000 BTC has been accumulated above the $97,500 level, with large investors and institutions seemingly defending this price zone. Additionally, investors whose cost basis is above $99,000 have obtained over 150,000 BTC, indicating a change in investor sentiment and a shift in support levels.

However, retail investors have shown little inclination to add to their holdings, with Santiment's on-chain data revealing a consistent decline in the number of addresses holding between 0 and 1 Bitcoin. This suggests that the market's smaller