Bitcoin (BTC) Price Surges Above $83,000 Following Introduction of Groundbreaking Legislative Proposal

The cryptocurrency market witnessed a strong rebound on Tuesday, led by Bitcoin (BTC), which surged above $83,000 following the introduction of a groundbreaking legislative proposal.

The cryptocurrency market displayed strong resilience on Tuesday, with Bitcoin (BTC) surging past the $83,000 mark following the introduction of a new legislative proposal that would create a Strategic Bitcoin Reserve.

The Bitcoin Act of 2025, which was tabled in the House of Representatives by Rep. Nick Begich (R-AK), aimed to accumulate Bitcoin (BTC) for the U.S. without taxpayer funding.

The initiative was met with enthusiasm from the crypto community, and it ultimately contributed to bullish momentum in the digital asset space.

Bitcoin Surges Above $83K as New Bill Sparks Rally

At 8:45 p.m. ET, Bitcoin was trading at $82,733.64, showing a 7.69% increase in the past 24 hours.

The world’s leading cryptocurrency briefly dipped below $1,800 but managed to reclaim the $1,900 level.

Meanwhile, Dogecoin (DOGE) saw an even greater surge of 10.04%, trading at $0.1652.

Here's a look at the top cryptocurrency gains and losses over the last 24 hours:

The overall market capitalization of the cryptocurrency sector climbed 6.28% to reach $2.68 trillion. Bitcoin's dominance reached a yearly high of 61.3%, while Ethereum's market share declined to 8.6%.

The introduction of the Bitcoin Act of 2025 came as a major catalyst for the rally, reinforcing confidence in Bitcoin's long-term role in the U.S. financial system.

The bill, which was tabled in the House of Representatives, aimed to create a national Bitcoin reserve through a rolling purchase program over five years. This initiative was in line with President Donald Trump's recent pro-crypto stance and signaled a potential shift in government policy towards digital assets.

Moreover, on-chain analytics firm CryptoQuant highlighted significant whale accumulation of Bitcoin amid recent price corrections. Over the past 30 days, whales had added more than 65,000 BTC to their holdings.

This trend indicated strong buying pressure from large institutional investors, especially during periods of price weakness.

CryptoQuant analysts noted that if this accumulation continued, it could be reminiscent of the bullish momentum observed between November and December, when Bitcoin saw a rapid surge toward its all-time highs.

As this accumulation unfolded, bearish traders faced liquidation, with over $265 million in shorts liquidated on major exchanges.

The percentage of futures traders positioned long on Bitcoin rose to 51%, showcasing a shift in sentiment towards bullish bets on the cryptocurrency's price rising further.

The Open Interest (OI) on Bitcoin also increased by 3.37% over the past 24 hours, indicating heightened speculative activity on the cryptocurrency.

Popular crypto analyst Michaël van de Poppe commented on the emerging relief rally, highlighting that Bitcoin needed to break above the $82,500-$83,500 range to confirm further upside.

"The next test is the massive one. If we get a break above the cluster at $82,500-$83,500, then we'll likely see a swift move towards $88,000-$92,000," van de Poppe predicted.

Top Gainers in the Last 24 Hours

While Bitcoin took the lead, several altcoins also clocked impressive gains, with some managing to outperform the broader market.

Here are the top 7 coins that gained the most in the last 24 hours:

Kaspa (KAS) led the pack with a 27.07% surge, followed by Bittensor (TAO) and Celestia (TIA) both seeing significant double-digit gains.

Macroeconomic Factors and Stock Market Decline

Despite the crypto market's bullish momentum, U.S. stocks faced another downturn on Tuesday as President Trump's tariff announcement had a negative impact.

The Dow Jones Industrial Average (DJIA) dropped 478.23 points (1.14%), closing at 41,433.48. Meanwhile, the S&P 500 fell 0.75% to 5,572.07, and the Nasdaq Composite declined 0.18% to 17,436.10.

Investor sentiment turned negative following Trump's statement that he planned to add a 25% tariff on Canadian steel and aluminum imports, taking the total tariff to 50%. However, the White House later clarified that only the initial 25% tariffs would go into effect, easing some concerns.

Traders are now turning their attention to February's Consumer Price Index (