🚀Bitcoin Ready to Take Off: Regulatory Favorability May Propel Market Breakthrough
By the end of May 2025, the cryptocurrency market is fluctuating amid optimistic sentiment and cautious observation. Bitcoin $BTC has recently maintained narrow fluctuations, consolidating in the range of $106,600 to $111,700 since May 22. Technical indicators suggest that if it successfully breaks through the key resistance level of $112,000, it may initiate a new round of upward movement, with target levels pointing to the important Fibonacci level of $134,000.
The current bullish sentiment in the market is mainly supported by three major factors:
1. Policy Easing: The U.S. Department of Labor has officially revoked the restrictive policy of 2022, and for the first time, approved the allocation of cryptocurrency assets in 401(k) retirement plans, marking a new phase of acceptance of digital assets within the traditional financial system.
2. Corporate Involvement: GameStop has made a significant purchase of 4,710 bitcoins (worth approximately $506 million), further affirming the trend of publicly traded companies incorporating Bitcoin into their asset reserves is accelerating.
3. National Endorsement: The U.S. government has established a strategic Bitcoin reserve, currently holding bitcoins worth approximately $20.4 billion, which further strengthens Bitcoin's position in the mainstream financial system.
Market performance shows a differentiated trend: Solana (SOL) and Ethereum $ETH are leading this month's market due to network upgrades and active DeFi ecosystems, while tokens like Aevo ($AEVO) have experienced significant corrections, highlighting the volatility risk in the market.
Looking ahead: Although both technical and fundamental aspects are sending positive signals, investors need to closely monitor the release of U.S. economic data and the potential market fluctuations triggered by Federal Reserve policy trends. In cryptocurrency investments, maintaining asset diversification and strict risk management remains the key to success.
