Bitcoin dropped to $76,200 this week after fresh Middle East strikes, then recovered to trade close to $78,000. A concentrated block of roughly 880,000 BTC sitting near breakeven is capping the recovery, while investors also watch a September 15 Senate vote on U.S. crypto regulation.
Bitcoin dropped to $76,200 — its lowest price tag in ten days — after fresh strikes reignited the Middle East conflict. The asset has since clawed back ground and now trades close to $78,000, with Investing.com putting the move up 1.4% to $77,894.4.
Bitcoin whipsaws between $76K and $81K
The path here has been volatile. Bitcoin's breakout from under $65,000 carried it toward $80,000 within days, and it eventually surged to $81,200 and $81,500 last week. But the rally lost steam, and the coin dropped to $77,000 last Friday after Fed Chair Kevin Warsh's hawkish Jackson Hole speech.
It recovered to $79,000 over the weekend before renewed Middle East strikes sent it back down. Its market capitalization now sits at $1.560 trillion, with dominance over altcoins holding at 59.6%.
An $68 billion supply wall caps the rebound
A concentrated cost-basis zone is complicating any push higher. Roughly 880,000 BTC carry a breakeven price between $77,500 and $80,300, according to Bitfinex Alpha data — a block worth nearly $68 billion that could release sellers as price revisits their entry point. Long-term holder profit-taking, measured by the Spent Output Profit Ratio, has hovered near 1 for nine straight sessions, suggesting holders are exiting near cost rather than capitulating.
Corporate demand has stepped in to absorb some of that supply. Strategy bought 4,603 Bitcoin for $369.7 million between August 24 and 30, ending a ten-week pause, even as U.S. spot Bitcoin ETFs opened September with a $236.5 million outflow. Bitfinex says two daily closes above $82,818 would confirm the supply shelf has been absorbed, while two closes below $76,657 could expose $73,500.
Regulatory vote and rate jitters add pressure
Traders are also watching Washington. SEC Chair Paul Atkins said he expects the Senate to hold a procedural vote on the Clarity Act on September 15, a bill he said was likely to reach President Trump's desk this month. At the same time, markets are pricing in a Federal Reserve rate hike in September following Warsh's hawkish remarks. That caution sits alongside the Iran conflict, a combination that has kept broader risk appetite subdued.
Sources: CryptoPotato, CryptoSlate, Investing.com
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