Bitcoin (BTC) markets are rallying on Tuesday as the Bitcoin Act of 2025 is introduced in the House

Bitcoin (BTC) markets are rallying on Tuesday as the Bitcoin Act of 2025 is introduced in the House, proposing the acquisition of one million BTC over five years with a 20-year lockup.

Crypto markets are rallying on Tuesday as the Bitcoin Act of 2025 is introduced in the House, proposing the acquisition of one million BTC over five years with a 20-year lockup.

The bill, co-authored by Reps. Steve Scalise (R-La.) and Maxine Waters (D-Calif.), would authorize the Treasury Secretary to purchase up to one million BTC in equal installments over a five-year period beginning in 2025. The bill would also require a 20-year lockup of the BTC holdings.

“This bipartisan legislation would provide the Treasury Department with the flexibility to manage the federal government's cryptocurrency holdings in a way that is responsive to market conditions and promotes economic stability,” Scalise said in a statement.

The crypto market has been volatile in recent months, with Bitcoin prices falling sharply from their all-time highs. However, the market has shown signs of recovery in recent weeks.

"Multiple signs point towards #Bitcoin reversing back into bull-mode. But of course, no one knows for sure. Personally, I’m not selling any #BTC at these prices. But if we do see a decent rise, traders might get some cells," trader Javon Marks said.

However, if Bitcoin prices break through the crucial level, the next test is the massive one, according to technical analyst Michael van de Poppe.

"If $82.5-83.5K breaks, probably we’ll see $88-92K in a swift move," he added.

Bitcoin has been in a seller-dominated market for two weeks, but declining seller volume could lead to exhaustion soon, technical analyst Rekt Capital noted.

"But if seller-dominated market continues for another 2 weeks, then we could see seller volume get low enough for exhaustion to set in. Could also see a macro bottom at $70K support (Fib level) if it holds," the analyst stated.

Crypto analyst CryptoQuant warns that while BTC's 22% drawdown is common in bull markets, valuation metrics indicate a deeper correction than usual, making this cycle different from 2016-17.

"BTC's 22% drawdown from the ATH is common in bull markets (e.g., 2016-17). However, valuation metrics indicate a deeper correction than usual, and this cycle is different from the 2016-17 cycle."

This deep correction is attributed to the significant altcoin rally that diverted demand from BTC, explained the analyst.

"The deep correction is attributed to the significant altcoin rally that diverted demand from BTC. This shift in demand is evident in the BTC hash price, which has remained low despite the altcoin season."

The analyst further noted that the Bitcoin hash price is typically high during bull markets and low during bear markets or periods of low demand for BTC.

"This hash price behavior is a crucial indicator of Bitcoin's market cycle stage."

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