Bitcoin and other major cryptocurrencies rallied after the U.S. House of Representatives introduced a Strategic Bitcoin Reserve bill.

The U.S. House of Representatives introduced a Strategic Bitcoin Reserve bill, leading to a rally in Bitcoin and other major cryptocurrencies.

The Bitcoin Act of 2025, presented by Rep. Nick Begich (R-AK) to establish a reserve without using taxpayer funding, was unveiled on Tuesday.

The bill aims to create a Bitcoin reserve by transferring 1% of the U.S. government’s gold bullion held at Fort Knox to be sold in the open market, with the proceeds used to purchase BTC.

The initiative highlights the growing interest in Bitcoin among U.S. lawmakers.

Earlier this week, Senator Cynthia Lummis also took note as she and Senator John H. Stevens (D-TX) reintroduced the “BITCOIN Act.”

The bill, designed to provide a comprehensive legal framework for Bitcoin and cryptocurrencies in the U.S., now has more cosponsors from the Senate.

Following the news, Bitcoin surged 7.69% to $82,733.64, briefly crossing the $83,000 mark. It is now trading at $82,316, a 2.5% rise in the past day. The announcement also pushed Bitcoin’s market dominance to 61.3%, its highest level in a year.

In parallel, Ethereum rose 5.57% to $1,910.35, rebounding from below $1,800. Meanwhile, XRP is now trading at $2.22, up 5% today after initially dipping to $1.92. Dogecoin also climbed 10.04% to $0.1652. Several less prominent altcoins also posted strong gains during the period. Notably, Kaspa shot up 27.07% to $0.4805, while Bittensor and Celestia jumped 20.60% and 19.59%, respectively.

The sudden recovery triggered $265 million in short liquidations, squeezing bearish traders out of positions. Bitcoin’s Open Interest has increased by 0.48% in the past day, indicating renewed investor interest. Futures traders now turned more bullish, with 51% holding long positions. In addition, the Crypto Fear & Greed Index also improved, moving from “Extreme Fear” to “Fear.”

However, analysts warn that Bitcoin still faces a key resistance zone. Crypto strategist Michaël van de Poppe stated that Bitcoin must surpass $83,500 to sustain its rally. If it does, he predicts a swift move toward $88,000-$92,000 in the short term.

On-chain data from CryptoQuant shows strong buying pressure, with whales accumulating more than 65,000 BTC over the past 30 days. This pattern closely resembles the accumulation phase between November and December, which preceded Bitcoin’s previous major rally.

The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind.