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Why Bitcoin's consolidation could spark a historic bull run
Experts believe that bitcoin's seven-month consolidation period could be a bullish signal, setting up the cryptocurrency for a historic bull run. The influx of capital from ETFs, sovereign wealth funds, and retail investors following the US election, as well as institutional involvement from companies like MicroStrategy, are driving the current price action. Regulatory clarity and potential nation-state adoption, including the US government's potential move to hold bitcoin as a strategic reserve asset, are also contributing to market optimism.
As bitcoin edges toward unprecedented highs, experts weigh in on its upward trajectory and the forces at play. Roundtable anchor, Rob Nelson, led the discussion with Kelly Kellam, Director of BitLab Academy, and Brian Dixon, CEO of Off The Chain Capital, exploring price action, regulatory changes, and institutional involvement shaping the market.
Kellam pointed to bitcoin's extended consolidation as a key bullish signal. “We’ve been in a seven-month sideways range, and that setup is one of the most asymmetric opportunities we’ve ever seen,” he said. Despite frustrations with oscillations near $20,000, he emphasized the importance of data over emotions, adding, “This isn’t about blasting to $150,000 overnight. That kind of unsustainable growth risks a hard crash.”
Nelson highlighted the influx of capital following the U.S. election, noting its bipartisan inevitability. “Whether it was Harris or Trump, capital was always going to be deployed,” he said, emphasizing contributions from ETFs, sovereign wealth funds, and retail investors. He added that the momentum seen now aligns with expectations of post-election investments.
Dixon elaborated on institutional moves, citing MicroStrategy’s plans to deploy billions of dollars to buy bitcoin. “They’ve already deployed $2 billion, which is a significant driver of the current price action,” he explained. He also linked the market’s optimism to regulatory clarity, saying, “With 219 pro-digital asset lawmakers elected, we’re likely to see a clear market structure emerge under the Trump administration.”
On Monday, MicroStrategy announced it had purchased another $5 billion worth of bitcoin — brining their total stash to $37 billion in total bitcoin holdings.
Dixon also predicted nation-state adoption as the next frontier. “The U.S. government holds 212,000 bitcoin, and there’s talk of moving it to the Treasury. Senator Lummis’s Bitcoin Act could bring the total to 1 million, making it a strategic reserve asset,” he noted. He suggested that other countries might already be acquiring bitcoin in anticipation, positioning themselves for a geopolitical advantage.