Bitcoin (BTC) is on the brink of a historic milestone as its price continues to surge, fueled by support from the US Congress for banks’ adoption of cryptocurrencies. With Bitcoin trading around $66,410 during the early London session, bullish sentiment suggests a new all-time high is imminent, supported by both technical and fundamental factors.

Rising Institutional Adoption and Declining Exchange Balances

Recent trends indicate a shift in the behavior of Bitcoin investors, with new addresses shrinking while the number of wallets holding significant amounts of BTC rises. Notably, there are currently 15,907 Bitcoin wallets holding at least 100 coins, with whales collectively holding 11.79 million coins. This accumulation is occurring alongside declining balances on centralized exchanges, indicating a preference for holding Bitcoin off-exchange.

Spot Bitcoin ETFs Gain Traction

The surge in Bitcoin’s price is complemented by increased trading volume in US-based spot Bitcoin ETFs, attracting notable cash inflows from institutional investors. Grayscale’s GBTC, a prominent player in the crypto investment space, has also reduced its daily Bitcoin sell-offs. Additionally, first-quarter earnings reports reveal that 937 financial institutions have purchased Bitcoins through recently approved spot BTC ETFs, signaling growing institutional interest and participation in the cryptocurrency market.

US Congress Supports Crypto Adoption

In a significant development for the cryptocurrency industry, the United States Senate unanimously approved a resolution overturning SAB 121, which restricted banks from holding clients’ crypto assets. This bipartisan support reflects heightened interest and demand for digital assets in the United States, with policymakers acknowledging the importance of fostering financial innovation.

US Senator Cynthia Lummis hailed the decision as a win for financial innovation and a rebuke of regulatory overreach in the crypto space. The spotlight is now on President Joe Biden, who faces the decision of approving or vetoing the resolution ahead of the upcoming elections. The US Congress’s stance highlights dissatisfaction with regulatory actions taken by SEC Chair Gary Gensler, signaling a desire to foster a more conducive environment for crypto projects and innovation.

Midterm Price Targets and Technical Analysis

Bitcoin’s price trajectory is supported by both technical analysis and fundamental factors, positioning it for further upside in the coming months. Analysts anticipate a potential super cycle following the fourth Bitcoin halving event, with Bitcoin’s underlying value retesting 2021’s all-time high.

According to crypto analyst Captain Faibik, Bitcoin’s price is forming a bullish pennant flag pattern, suggesting a target price of $86,000 in the near term, coinciding with the 2.618 daily Fibonacci Extension. However, sustained closure above $68,000 in the coming weeks is crucial to validate the bullish trend and pave the way for further price appreciation.

Conclusion

Bitcoin’s journey towards a new all-time high is fueled by a convergence of bullish factors, including institutional adoption, regulatory support, and favorable technical indicators. With the US Congress backing banks’ adoption of cryptocurrencies and growing institutional participation in the market, Bitcoin’s ascent to new heights appears increasingly inevitable.

As Bitcoin continues to assert its dominance in the digital asset landscape, investors are advised to monitor key developments and technical indicators to navigate the evolving market dynamics. With midterm price targets indicating significant upside potential, Bitcoin’s rally presents lucrative opportunities for investors seeking exposure to the world’s leading cryptocurrency.