Did Congress Just Trip Over Bitcoin’s Momentum?

Remember how Bitcoin shot past $120,000 on Monday like it was gunning for the moon? Yeah, well... gravity kicked in, hard.

It peaked around $123K early in the day, setting off fireworks for what was supposed to be “Crypto Week” in Washington. But by Tuesday, it had pulled back to around $116.5K, dragging altcoins and crypto stocks down with it.

So what happened? Congress blinked.

The House was expected to push through three big crypto bills:

• GENIUS Act; focused on stablecoin regulation.
• CLARITY Act; would’ve finally told us what counts as a security vs. a commodity.
• Anti-CBDC Act; basically “nope” to the Fed creating a digital dollar.

But then, the House voted no on even bringing these up for debate. The whole crypto fan club, including Coinbase and MicroStrategy stocks felt the chill. Bitcoin dropped nearly 3% after the vote.

Twelve Republicans sided with Democrats, and just like that, momentum stalled. Instead of a regulatory breakthrough, we got political gridlock and a red day across the charts.

So, is this the end of the rally?

Not really. Experts say this drop might just be a normal breather after a big run-up. One clue? The Fear & Greed Index is sitting at 70 and that’s high. This index measures how people feel about the market, from 0 (full-on panic) to 100 (wild excitement). A 70 means investors were getting a little too hyped, and when that happens, prices often dip as things cool off. It’s like the market taking a deep breath before the next move.

And look, the bills aren’t dead. They might come back revised, repackaged, or rebranded (probably with cooler acronyms because Congress loves those). If they do, and especially if the Fed starts whispering sweet nothings about rate cuts, we might see Bitcoin bounce again.

Meanwhile, the AI bots are still at work.

Platforms like Numerai, TokenMetrics, and IntoTheBlock are crunching data 24/7, spotting patterns faster than you can say “blockchain.” Some of them are actually beating traditional price prediction models.

So here's the million satoshi question: Can better regulation plus smarter AI finally turn crypto into a grown-up market?

We’re watching closely, especially now that it’s not just retail traders FOMO-ing in, big money’s paying attention too. But if Congress keeps fumbling the ball, don’t be shocked if Bitcoin decides to take a water break.

What’s your call, buy the dip or wait it out? Hit reply. Let’s talk.

- Matt Masinga