 ▲ Bitcoin (BTC) decline / AI-generated image |
The cryptocurrency market is facing historic uncertainty surpassing the dot-com bubble and the global financial crisis, yet political compromise aimed at securing regulatory clarity and aggressive institutional accumulation are signaling the beginning of a new turning point.
Paul Barron, host of the cryptocurrency-focused YouTube channel Paul Barron Network, said in a video uploaded on Feb. 18 (local time) that the current market uncertainty index has reached an all-time high, exceeding levels seen during COVID-19 and the 2008 financial crisis. The Fear and Greed Index, which measures investor sentiment, has fallen to 13, indicating extreme fear, and the market is undergoing painful consolidation to confirm a bottom. While global instability is pressuring risk asset markets, it is paradoxically a process of compressing energy for a strong rebound.
In the political arena, urgent efforts are underway to pass the U.S. crypto market structure bill, the Clarity Act. U.S. President Donald Trump is reportedly employing a strategy to push the bill forward by conditioning it on filling vacant Democratic seats at the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Such a compromise would eliminate regulatory uncertainty and serve as a decisive catalyst for accelerating institutional capital inflows, including into Bitcoin (BTC).
Ripple CEO Brad Garlinghouse expressed optimism, estimating an 80% probability that the bill will pass by the end of April. BlackRock is also diversifying its revenue structure through the iShares Staked Ethereum Trust while increasing calls in Washington for regulatory clarity. As Wall Street’s major capital begins to move, the political narrative surrounding cryptocurrencies such as XRP is also shifting in a favorable direction.
Regarding Ethereum’s (ETH) price trajectory, market expert Tom Lee identified the $1,890 level as a strong bottom. Bitmine (BMR) is pursuing an aggressive goal of securing 5% of total supply by purchasing $450,000 worth of Ethereum weekly. Experts advise that a true market bottom should be confirmed when signals emerge of institutional investors accumulating more than 100,000 ETH in a single transaction.
The Federal Reserve has maintained a soft quantitative easing stance, supplying $16 billion in liquidity this week alone to cushion market shocks. The current pain experienced by the crypto market is a necessary step toward regulatory institutionalization and the establishment of institutional-grade infrastructure. The point at which regulatory clarity is secured and liquidity provision intensifies will mark a watershed moment for the start of a new bullish cycle in the crypto market.
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