Bitcoin shows signs of market recovery amid US economic shifts

Bitcoin has shown signs of market stabilization, recently reaching a peak of $87,397 before trading around the $84,000 range. This recovery follows a period of significant volatility where the asset lost over half its value from an October 2025 high of $126,000.

Market indicators suggest a potential bull market, supported by renewed demand in US Bitcoin spot ETFs and a resilient reaction to negative news, such as the failure of the Clarity Act in the US Senate and interest rate hikes by the Federal Reserve. Data from Glassnode indicates that the proportion of long-term holders in realized profits has decreased from 88% to 47%, suggesting a shift in holder behavior.

Looking ahead, upcoming US economic data, specifically the labor market report and Personal Consumption Expenditures (PCE) inflation data, are expected to influence Bitcoin's price trajectory and the Federal Reserve's interest rate decisions.