Bitcoin (BTC) Bounces Back to Around $80,000 After Dropping Below $78,000

BTC gained momentum after Senator Cynthia Lummis reintroduced the BITCOIN Act, which proposed that the U.S. government purchase 1 million BTC

Bitcoin (BTC) staged a minor comeback on Monday, as the cryptocurrency dropped below $78,000 over the weekend. Ether (ETH), BNB, XRP, and Cardano's ADA rose by up to 3%.

The world's largest cryptocurrency slid to as low as $77,800 on Sunday, sparking a small rally in major tokens. The small recovery comes after a week of losses that saw Bitcoin decline from over $87,000 to the $70,000 handles.

SEC Delays Decisions On Multiple ETFs

The U.S. Securities and Exchange Commission (SEC) has delayed decisions on multiple exchange-traded fund (ETF) filings, including those for XRP, Dogecoin, and Litecoin.

Bloomberg analysts had predicted 90% odds for Litecoin, 75% for Dogecoin, and 65% for XRP ETF approval by year-end. However, the SEC's deferral of these filings has introduced uncertainty into the market.

Some traders are awaiting a drop to $74,000 before expecting a rebound, as analysts noted that a similar decline in the past attracted buyers for a bounce-back.

Moreover, the likelihood of a pullback to the $70-$74K range is now higher than before, owing to the increasing influence of traditional financial companies, which have closely linked the crypto market with stock market trends. The analyst also noted that the rebound in early March has reduced the oversold conditions, rendering the pullback even more probable.Senator Lummis Reintroduces BITCOIN Act

BTC gained momentum after Senator Cynthia Lummis reintroduced the BITCOIN Act, which proposed that the U.S. government purchase 1 million BTC over five years as a strategic reserve. Lummis initially introduced the bill last year.

"Bitcoin is not simply a technological opportunity, but a national imperative for America's continued financial leadership in the 21st century," Lummis said.

Between 2025 and 2029, the first $6 billion in remittances from reserve banks would be used to build the reserve, which would be backed by the Fed's gold certificates. Some have speculated that major tokens could be included in the reserve in the future.

"As the world's leading currency, the dollar's stability and enduring value are essential for global economic prosperity and security. This bill will strengthen the dollar, reduce inflation, and safeguard America's standing as the preeminent financial power in the 21st century," said Lummis, a Republican from Wyoming, announced the reintroduction of her bill.

The senator's bill, the "Best Interest in Technology Currency, Innovation, and Open Networks Act" (BITCOIN Act), would create a Bitcoin reserve at the Federal Reserve.

After the bill's introduction last year, several lawmakers expressed interest in the proposal, which aimed to diversify the Fed's balance sheet and introduce the world's largest cryptocurrency into the U.S. financial system.

"This legislation will serve as a framework for bipartisan cooperation on cryptocurrency policy in the new Congress," said Lummis.

"We will be working closely with colleagues on both sides of the aisle to advance this critical agenda."

The initiative also aimed to mitigate the environmental impact of Bitcoin mining by integrating renewable energy sources.

"This bill is a blueprint for how we can harness the transformative power of cryptocurrency to strengthen America's economy and global leadership for the 21st century," Lummis added.

Senator Lummis's initiative to integrate Bitcoin into the U.S. strategic reserve unfolded amid a broader narrative of institutional involvement in cryptocurrency.

This initiative followed a joint venture between the renowned hedge fund giant, Point72, and the cryptocurrency investment firm, CVC, to launch a sophisticated multi-asset investment firm with a focus on digital assets.

In a statement released on Monday, Point72 and CVC announced their partnership to establish a new holding company, which would bring together Point72's expertise in public and private equity markets with CVC's deep involvement in cryptocurrency and Web3 investments.

"We are thrilled to be joining forces with Point72 to launch this unique multi-asset investment firm," said Jeff Cooper, co-founder and managing partner of CVC.

"This partnership will combine Point72's strengths in traditional financial markets with CVC's extensive experience in cryptocurrency and Web3 to create an investment powerhouse with a truly global focus."

The venture aimed to capitalize on the increasing convergence of cryptocurrency and traditional financial markets, aiming to provide investors with innovative investment products and solutions.

"CVC and Point72 share a common vision for the future of finance, and we are excited to work together to build a multi-asset investment firm that will provide investors with best-in-class products and solutions," said Paul Stevens, co-founder and managing partner of Point72.

The new holding company would be structured as a joint venture