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Bitcoin has been trading in a tight range between $95,000 and $99,000 for weeks, leaving investors wondering when the next big rally will come.
Despite the steady stream of positive news, market sentiment remains lukewarm and Bitcoin is struggling to reclaim its December highs.
Bitcoin first broke the highly anticipated $100,000 mark on Dec. 5 and reached a peak of $108,000 on Dec. 17, partly due to President Trump’s re-election. However, price action has been lackluster since then.
Analyst Noelle Acheson described the market sentiment as “feeble” in her Crypto Is Macro Now newsletter, pointing to potential factors holding Bitcoin back. These range from the trauma left over from the 2022 crash to the distractions of memecoins and the Strategic Bitcoin Reserve to a perceived slowdown in crypto innovation. But Acheson argues that much of this stagnation could be down to investor impatience.
According to Acheson, the key catalyst for Bitcoin’s next move will be large new inflows. While institutional investors have made a move into Bitcoin, the broader institutional market remains largely on hold. The launch of new Bitcoin ETFs could change that, potentially unlocking significant capital inflows.
In addition, Acheson predicts that as institutional investors begin to move the market, retail investors will also step in, triggering a classic FOMO-driven rally. Regulatory clarity and positive policy changes could further fuel the momentum.
*This is not investment advice.
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