Analysis: Bitcoin returns to a strong range, and the crypto market may attract funds rotating from precious metals

Bitcoin broke through $97,000 this week, surpassing a key resistance level that had held for nearly two months. Although it had previously lagged behind the stock market and precious metals, it finally broke through the $95,000 level that had been limiting its rise since November.

As the potential further devaluation of the U.S. dollar is driving up precious metal prices, Bitcoin's relatively low price compared to precious metals may stimulate a rotation of funds into digital assets, and the market sentiment index has shifted to "greed." In terms of regulation, the U.S. Senate Banking Committee has postponed the revision of its cryptocurrency market structure bill, and Coinbase has withdrawn its support for the bill, which may have some impact on the crypto market.