As the cryptocurrency market undergoes a temporary adjustment, major altcoins including Bitcoin are experiencing a collective decline, drawing investor attention. Despite recent positive statements from US government and SEC officials, key cryptocurrencies like XRP, ETH, and XLM have not escaped the downward trend. This situation is interpreted as a healthy correction following a significant rally, with analyses suggesting it does not disrupt the long-term bullish momentum.
SEC Commissioner Paul Atkins provided a clear regulatory signal in a CNBC interview, emphasizing that "the US government has essentially approved Bitcoin and cryptocurrencies" and referencing the recently signed 'Genius Act'. This bill, focused on stablecoin regulation, is considered a cornerstone for future financial infrastructure development. Atkins highlighted that stablecoins can help reduce market risks and settlement delays, and that digital asset adoption will enhance global financial market efficiency.
However, amid expectations, the market could not avoid short-term decline. Bitcoin has fallen from its recent high of $123,000 to around $117,900, Ethereum dropped below $3,790, and XRP, which once reached $3.62, has also descended. This trend is seen as a natural pullback after weeks of rapid growth and reflects market uncertainty ahead of expected digital asset regulatory bills in September-October.
Market experts remain positive. Cryptocurrency analyst Lark Davis views this correction as a potential springboard for continued growth. He argues that this cycle differs from 2017 or 2021, citing institutional fund inflows, ETF approvals, and major corporate cryptocurrency adoptions. Davis suggests this bull market might create a slow but strong trend similar to gold's rise from 2004 to 2011, potentially peaking in 2027-2028.
Meanwhile, global research firm Bernstein forecasts Bitcoin will reach $200,000 by early 2026, analyzing this as a "long-term and patience-demanding" cycle distinctly different from past short-term volatile cycles.
While this decline may cause short-term confusion, the Trump administration's policy shifts and SEC's changing attitude provide structural optimism for digital asset investors. The market's ability to absorb current adjustments and demonstrate continuous growth through institutional integration in the coming years remains a key focus.
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