Bitcoin is currently experiencing a trading range between $93,000 and $106,000, suggesting possible significant price volatility in the near future. Market sentiment has been waning, largely attributed to a decrease in Bitcoin millionaires during the current presidential administration.
Despite the recent fluctuations in price, data from on-chain analytics indicates that accumulation among investors remains strong, showcasing continued confidence in Bitcoin. The overall cryptocurrency market has seen little change in total capitalization over the last 24 hours.
Recent on-chain metrics have shown robust demand for Bitcoin, even amid these price variations. Following a peak in mid-December, the cryptocurrency has entered a phase of accumulation, adhering to past trends that exhibit extended corrections after sharp price increases. The current support level sits at $94,340, while resistance is observed at $106,784. As of the latest information, Bitcoin’s price is around $96,163, reflecting a slight increase of 1.5% over the past week.
Historically, when Bitcoin remains within a narrow trading range for a prolonged period, it can lead to sudden significant price shifts. This behavior underscores the potential for abrupt spikes or reversals before any major breakout occurs.
Interestingly, the number of millionaire Bitcoin addresses has plummeted since the commencement of the new presidential term. Initially, optimism surged during the lead-up to the election, during which approximately 11,000 new Bitcoin millionaires were created between October and November 2024. However, following the inauguration on January 20, a considerable decline in millionaire addresses has been noted.
According to data from BitInfoCharts, between January 21 and February 18, the number of Bitcoin addresses holding more than $1 million dropped by 22,279, averaging nearly 795 fewer millionaire accounts each day. There has also been a notable decline in larger wallets, as addresses with holdings exceeding $10 million decreased from 18,801 to 15,392. Overall, since the new term began, over 3.54 million Bitcoin addresses with at least $1 in holdings have vanished.
The cryptocurrency market has faced an array of additional challenges stemming from recent macroeconomic events. Following the inauguration, widespread market disruptions contributed to Bitcoin’s stagnation. A release of an advanced AI model from China prompted a selloff throughout the tech sector, further impacting the cryptocurrency market. Concerns over proposed tariffs on international trading partners added to the rising financial uncertainty.
Moreover, inflation data from early 2025 revealed an unexpected rise shortly after the administration called for further interest rate cuts, and mixed signals regarding the administration’s support for Bitcoin and other digital assets have fueled additional uncertainty. The administration’s links to controversial cryptocurrency initiatives, including the launch of meme coins, have also drawn scrutiny within the market.
As Bitcoin navigates this precarious landscape, observers are keenly awaiting potential market movements, particularly given its recent trend of low volatility juxtaposed against high previous price fluctuations. The situation underscores the complex interplay between macroeconomic influences, investor sentiment, and the inherent volatility characteristic of cryptocurrencies. With Bitcoin trapped within its current range, the anticipation builds for what may be forthcoming in terms of price adjustments or strategic market shifts in the days ahead.