Bitcoin (BTC) Price Rebounds After Major Court Victory by Crypto Mixer Tornado Cash

Bitcoin's (BTC) rebound happened after a major court victory by Tornado Cash, a crypto mixer. In a ruling, a three-judge bench said that it was wrong to sanction its smart contract.

Bitcoin price rebounded on Wednesday after a two-day retreat that pushed it to the $90,000 level.

The rebound happened after a three-judge bench ruled that it was wrong to sanction Tornado Cash’s smart contract. Coinbase, the biggest crypto exchange in the US, was among the companies that supported the firm.

Privacy wins. Today the Fifth Circuit held that @USTreasury’s sanctions against Tornado Cash smart contracts are unlawful. This is a historic win for crypto and all who cares about defending liberty. @coinbase is proud to have helped lead this important challenge. 1/6

This victory comes as the crypto industry is securing some legal wins in the US, which will lead to more regulatory clarity. In addition to this, there is a growing hope that the Donald Trump administration will be friendly to the crypto sector.

Meanwhile, crypto analysts believe that the recent pullback was a mere retracement, as the bullish view is still intact. In an X post, Charles Hoskinson, a crypto millionaire who founded Cardano, predicted that the coin will rise to between $250,000 and $500,000 in the next 12 to 24 months.

He believes that more companies will start allocating some of their assets to Bitcoin, as MicroStrategy and El Salvador have done. To date, MicroStrategy owns BTC coins worth $32 billion, while its market cap is over $70 billion.

If Bitcoin rises to $500,000 and its supply remains at the current 19.6 million, it will have a market cap of over $9.75 trillion. That would make it a larger asset than NVIDIA and Microsoft combined.

A key bullish argument for Bitcoin is that it took more than 15 years to reach $100,000, which means it will take a shorter period to reach $200,000. For example, the Dow Jones reached $10,000 in 2010 and $20,000 in 2020. It then took two years to reach $30,000 and less than two years to reach $40,000.

Bitcoin price cup and handle predicts a jump to $122,000

The weekly chart shows that the BTC price has formed a cup and handle pattern whose upper side is at about $68,800. The depth of this cup was about 78%. Therefore, measuring that distance from the upper side suggests that the coin will rally to $122,000 in the near term.

Further supporting the bullish case is the fact that the Bitcoin price has formed a golden cross chart pattern as the 200-day and 50-day moving averages crossed each other. Historically, it tends to make major moves after forming this cross.

The bullish view will become invalid if the coin falls below the lower side of the handle at $49,523.