Bitcoin Price Analysis: BTC Rally Stalls Around $97,000 As Investor Sentiment Remains Fragile

Bitcoin (BTC) stalled around $97,000 as low funding rates and limited retail participation derailed upward momentum. Investor sentiment remains fragile, and the flagship cryptocurrency’s pullback from an intraday high of $97,097 further weakened investor sentiment. 

Meanwhile, spot Bitcoin ETFs recorded the fourth consecutive day of inflows, registering just over $100 million in net inflows on Thursday. BlackRock’s IBIT led the inflows with $315 million, but Fidelity’s FBTC recorded a $125 million outflow. 

South Korea One Step Closer To Formalizing Blockchain-based Capital Markets 

South Korean lawmakers advanced crucial legislation that helps create a legal framework for issuing and trading tokenized securities. The move is a significant step toward formalizing blockchain-based capital markets, clearing the path for regulated security token offerings (STOs) and integrating distributed ledger technology (DLT) into the country’s existing financial system. According to an official release, South Korea’s National Assembly passed amendments to the Capital Markets Act and the Electronic Securities Act during a plenary session. 

The amendments recognize tokenized securities as legitimate financial instruments, defining how they can be issued, distributed, and traded under Korean law. The revised framework allows the Electronic Securities Act to permit eligible issuers to create tokenized securities using blockchain infrastructure. Meanwhile, the changes to the Capital Markets Act allow those products to be traded as investment contract securities through brokerages and other licensed intermediaries. 

Crypto Fear & Greed Index Drops Again 

The Crypto Fear & Greed Index dropped on Friday, a day after hitting a multi-month high. The drop has been attributed to marketwide unease created by the delay in the crypto market structure bill. The Fear & Greed Index fell 12 points to a neutral score of 49 on Friday. The index reached 61 on Thursday, its highest level since it hit 64 on October 10, the same day as the market crash that liquidated over $19 billion from the crypto market. According to analytics platform Santiment, Bitcoin’s rise to $97,480 appeared justified based on smart money accumulation and retail traders selling. 

Democrats Flag SEC’s Lack Of Enforcement Action 

Democratic lawmakers have called out the Securities and Exchange Commission’s (SEC) retreat from enforcing US securities laws against major crypto firms. The SEC has abruptly dropped nearly a dozen enforcement cases since early 2025. These include ongoing litigation against Binance, Coinbase, and Kraken, despite rulings supporting the SEC’s allegations of fraud and unregistered securities offerings. Democratic lawmakers argued that the timing of the closures raises questions about political influence and highlighted that Coinbase, Kraken, Ripple, Robinhood, and Crypto.com had donated millions to President Trump’s campaign and inauguration.

Lawmakers singled out Tron founder Justin Sun. Sun’s SEC case has been put on ice, while he continues investing millions in Trump-linked crypto ventures.

Brian Armstrong Expects Market Structure Bill Markup Within Weeks 

Coinbase CEO Brian Armstrong believes the crypto market structure bill markup could happen in a few weeks, just hours after pulling support for the legislation. Armstrong had said during an interview that Coinbase was withdrawing its support for the CLARITY Act in its current form. The bill’s markup was scheduled for Thursday, but was postponed after Armstrong’s comments. Armstrong stated, 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC)B stalled on Wednesday after briefly crossing the $97,000 mark. The flagship cryptocurrency reached an intraday high of $97,963 before settling at $96,955. Selling pressure returned on Thursday as the price fell 1.41% to $95,587. BTC is marginally down during the ongoing session, trading around $95,425. 

According to analysts and on-chain metrics, low funding rates and muted interest suggested fragile investor sentiment. The flagship cryptocurrency stabilized between $95,000 and $97,000 after a 3-day rally that wiped out around $465 million in Bitcoin short positions. Bitcoin’s perpetual futures funding rate stood at 4%, suggesting limited demand for bullish conditions. Funding rate typically sits between 8% and 12% in neutral conditions, compensating for the cost of capital. 

Meanwhile, Nasdaq traded 1.6% below its all-time high as investor confidence returned after chipmaker TSMC reported a 35% increase in quarterly earnings. In comparison, Bitcoin remains significantly lower than its all-time high despite recent gains. Additionally, overall interest in the crypto market has also been declining. According to data from Google Trends, global search interest for the term “crypto” sits at 27 on a scale of 0-100, close to its 12-month low of 22. This could be due to retail investor interest pivoting towards silver, which registered a 28% increase in two weeks. BTC is viewed as a direct competitor of precious metals like gold and silver. However, crypto traders generally focus on short-term performance. 

Market skepticism can also be attributed to socio-political risks and concerns around the independence of the US Federal Reserve. The US Justice Department recently launched an investigation into cost overruns associated with the Fed’s building renovation, raising concerns about whether President Trump was pressuring Fed Chair Jerome Powell to cut interest rates further. 

BTC ended the previous weekend in positive territory, rising 0.99% to $91,494. Bullish sentiment intensified on Monday as the flagship cryptocurrency rose 2.60%, crossing $93,000 to $93,870. Selling pressure returned on Tuesday as the price dropped to a low of $91,203 before reclaiming $93,000 and settling at $93,722. Selling pressure intensified on Wednesday as BTC fell nearly 3% to $91,279. Sellers retained control on Thursday as the price briefly fell to a low of $89,200 before settling at $91,026.

Source: TradingView

BTC faced volatility on Friday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as the price fell 0.56% to $90,515. Price action was mixed over the weekend as BTC registered a marginal drop on Saturday before rising 0.54% on Sunday to $90,872. The price faced volatility on Monday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as BTC registered a marginal increase to $91,188. The flagship cryptocurrency rallied on Tuesday, rising nearly 4% to reclaim $95,000 and settle at $95,384. Buyers retained control on Wednesday as BTC rose 1.65% to $96,955. Selling pressure returned on Thursday as the price fell 1.41% to $95,587. BTC is marginally down during the ongoing session, trading around $95,467.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.