- Bitcoin jumped 7.69% to $82,733.64 after introducing a new BTC Reserve bill.
- XRP and Dogecoin also rebounded, posting significant gains.
- Analysts suggest that BTC could surge to $92,000 if it breaks a key resistance zone.
Bitcoin and other major cryptocurrencies rallied after the U.S. House of Representatives introduced a Strategic Bitcoin Reserve bill. The bill, known as the Bitcoin Act of 2025, was presented by Rep. Nick Begich (R-AK) to establish a reserve without using taxpayer funding.
Notably, Senator Cynthia Lummis also reintroduced the “BITCOIN Act” on Tuesday, which now features more cosponsors from the Senate than before.
Following the news, Bitcoin surged 7.69% to $82,733.64, briefly crossing the $83,000 mark. It is now trading at $82,316, a 2.5% rise in the past day. The announcement also pushed Bitcoin’s market dominance to 61.3%, its highest level in a year.
In parallel, Ethereum rose 5.57% to $1,910.35, rebounding from below $1,800. XRP is now trading at $2.22, up 5% today after initially dipping to $1.92. Dogecoin also climbed 10.04% to $0.1652.
Meanwhile, several less prominent altcoins also posted strong gains during the period. Kaspa shot up 27.07% to $0.4805, while Bittensor and Celestia jumped 20.60% and 19.59%, respectively.
Related: Recession Fears Spark Market Sell-Off; Bitcoin Plunges Anew
Short Sellers Squeezed as Market Rallies
The sudden recovery triggered $265 million in short liquidations, forcing bearish traders to exit positions. Bitcoin’s Open Interest has increased by 0.48% in the past day, signaling renewed investor interest. Futures traders now turned more bullish, with 51% holding long positions. In addition, the Crypto Fear Greed Index also improved, moving from “Extreme Fear” to “Fear.”
Bitcoin’s Next Move: Key Resistance Level
Despite the rebound, analysts warn that Bitcoin still faces a key resistance zone. Crypto strategist Michaël van de Poppe stated that Bitcoin must surpass $83,500 to sustain its rally. If it does, he predicts a swift move toward $88,000-$92,000 in the short term.
On-chain data from CryptoQuant shows strong buying pressure, with whales accumulating more than 65,000 BTC over the past 30 days. This pattern resembles the accumulation phase between November and December, which preceded Bitcoin’s previous major rally.
Related: Bitwise Bets on Corporate Bitcoin: New ETF Provides Indirect Access to Cryptocurrency’s Institutional Adoption
Broader Market Awaits Inflation Data
Meanwhile, the broader financial market remained under pressure, with U.S. stock indices closing lower for the second consecutive day. The Dow Jones Industrial Average dropped 1.14%, while the SP 500 fell 0.75%.
Market participants are now awaiting February’s Consumer Price Index (CPI) data, set for release Wednesday, to assess inflation trends and the Federal Reserve’s potential response.
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