Bitcoin surged past $97,000 on Wednesday, extending its January rebound as optimism grew around a potential regulatory boost for the US crypto industry.
The world’s largest cryptocurrency jumped more than 3% after US senators released a draft bill aimed at creating a clearer regulatory framework for digital assets. The proposal seeks to clarify jurisdiction between regulators, a long-standing demand from the crypto industry.
Crypto advocates see regulation as a key catalyst after a weak end to last year, arguing that legal clarity could unlock broader institutional participation.
“Overall great progress,” said Sean Farrell, head of digital assets at Fundstrat, adding that the draft bill could be a meaningful tailwind for altcoins and US-based crypto companies.
Altcoins join the move
The rally was not limited to Bitcoin.
Ethereum rose about 5%, while Solana gained nearly 3%, reflecting renewed risk appetite across the crypto market.
Bitcoin is now up roughly 10% year to date, recovering from a sharp fourth-quarter selloff that saw prices fall from around $126,000 in October to near $88,000 by the end of 2025.
Analysts see room to run
Some analysts caution that the bill may not pass this year, but market momentum remains strong.
10X Research said Bitcoin is facing resistance near $98,000, a level tied to the 21-week moving average, but noted that technical indicators are not yet overbought.
“With multiple weekly indicators still well below overbought levels, we believe the rally has scope to extend further and ultimately push Bitcoin back above $100,000,” the firm said.
Institutional demand in focus
Analysts point to rising inflows into spot Bitcoin ETFs as the key driver for the next leg higher.
Compass Point’s Ed Engel said that once selling pressure from long-term holders fades, institutional buying could push Bitcoin back toward record highs.
For now, momentum is firmly on Bitcoin’s side, with traders watching whether the rally can break decisively above the $100,000 mark.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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