US Cryptocurrency Legislation Delayed! Bitcoin Plummets to a Nearly Three-Month Low!

TradingKey – The market is once again shaken by negative news, causing Bitcoin to drop to around $82,000. Despite this, analysts remain optimistic, believing Bitcoin will eventually reach new highs again.

On Thursday, Bitcoin experienced another significant decline due to unfavorable news from the US. In the past 24 hours, Bitcoin fell by over 4%, hitting a low of $82,256, marking its lowest point since November of last year.

Bitcoin Price Chart, Source: TradingView.

Last night, US lawmakers postponed the timeline for cryptocurrency legislation. Senator Cynthia Lummis mentioned during the first meeting of the Senate Banking Committee's Digital Assets Subcommittee that a bipartisan group of lawmakers supporting cryptocurrency aims to pass a comprehensive framework for the industry by the end of this year. This announcement means the timeline has been delayed by several months from the original schedule set by Republican decision-makers.

The news further exacerbated the already fragile crypto market. Recently, five states—including North Dakota, Pennsylvania, South Dakota, Wyoming, and Montana—rejected proposals for state-level Bitcoin reserves, leading to a decline in market confidence. This has raised doubts about whether former President Trump’s proposed Bitcoin strategic reserve plan can be realized, triggering a sharp drop in Bitcoin’s price. Over the past month, Bitcoin's price has consistently declined, with a total drop of over 16%.

CryptoQuant CEO Ki Young Ju believes that a 30% correction in a Bitcoin bull market is normal. He stated, “If you're panicking and selling now, you might be a novice. A 30% pullback is common in a Bitcoin bull cycle. In 2021, Bitcoin dropped by as much as 53% but still recovered to set a new all-time high.”

LMAX Group’s crypto strategist Joel Kruger shares a similar perspective. He noted, “BTC has strong support in the $70,000-$75,000 range, which could serve as an attractive higher low, laying the groundwork for the next significant surge and pushing Bitcoin to break through $110,000, setting a new historical high.”