Bitcoin Stalls at $70,000 Barrier as Deadline for 'Fateful Bill' Looms Amid Bear Market Fears

▲ Bitcoin (BTC), decline, bear market / ChatGPT-generated image

Bitcoin (BTC) has failed to reclaim the $70,000 level, fueling fears of a bear market. At the same time, investor anxiety is intensifying as the deadline approaches for the U.S. cryptocurrency market structure bill, which could determine the market’s fate.

According to crypto media outlet CryptoPotato on February 21 (local time), Bitcoin has been trapped in a dull trading range after plunging from $90,000 to below $70,000, heightening concerns about entering a bear market. The Crypto Fear & Greed Index continues to signal extreme fear, while spot Bitcoin ETFs have recorded significant daily outflows, suggesting that market sentiment is reaching exhaustion. In particular, the persistence of a “death cross,” where the 50-day moving average falls below the 200-day moving average, is intensifying downward pressure.

On-chain analytics firm Santiment reported that the number of active addresses on the Bitcoin network has sharply declined, indicating a noticeable drop in market participation. Open interest has also retreated to 2024 levels, reflecting weakened speculative demand. Meanwhile, the Market Value to Realized Value (MVRV) ratio stands at 1.27, suggesting that average investors remain in only modestly profitable positions. Retail investors are eyeing the $60,000 to $65,000 range as the final support zone, closely watching for signs of further downside.

The U.S. cryptocurrency market structure bill, known as the CLARITY Act, considered a key measure to resolve regulatory uncertainty, is facing last-minute hurdles ahead of the February 28 processing deadline set by the White House. The Senate Banking Committee is currently deadlocked over provisions banning stablecoin issuers from offering yield, amid sharp tensions between the banking sector and the crypto industry. Banks argue that stablecoin interest could accelerate deposit outflows and are calling for stringent regulations, while crypto firms oppose the measure on the grounds that it would stifle innovation.

Ripple CEO Brad Garlinghouse stated that the bill must pass to end regulatory confusion, even if it is not perfect. He expressed confidence that banks and crypto companies will soon find common ground and estimated an 80% chance that the bill will receive the president’s signature by the end of April. The White House Digital Asset Advisory Council also urged swift congressional action, saying this month represents the last opportunity for legislation given the upcoming midterm election schedule.

The digital asset market stands at a critical crossroads, where the legislative outcome could either provide new growth momentum or lead to a prolonged downturn. For Bitcoin to break above the psychological resistance level of $70,000 and stage a rebound, regulatory clarity and renewed institutional inflows will be essential. Investors worldwide are closely watching whether the White House can broker a compromise and whether Bitcoin can defend its key support levels.

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