Bitcoin Faces Critical 25-Day Window as Fed, BOJ and SEC Set Up Major Market Shift

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Bitcoin may look calm after weeks of choppy trading, but a much bigger story is unfolding.

Jessica Gonzales, host of The Jessica Show, says the next few weeks set the stage for an entirely new liquidity cycle.

The Selling Is Mostly Done – Now What?

Bitcoin recently saw a 36% correction from its all-time high, which was sharp but normal for a bull market rhythm. Long-term holders sold heavily during the drop, pushing their supply to the lowest levels since March. With that selling already out of the way, Gonzales asks a pointed question: who is left to sell aggressively now?

Price also tapped the $88-89K fair value gap, a zone created by a previous fast move. Meanwhile, retail interest has faded across searches and trading activity.

All Eyes on the Fed and the BOJ

The first major catalyst hits with the Federal Reserve’s meeting today. A 25 bps cut is expected, but the real driver is the Fed’s tone and forward guidance. With thin order books and compressed volatility, even a single phrase can move Bitcoin. “Right now the market is dry grass,” Gonzales says.

A week later, the Bank of Japan takes the spotlight. A possible rate hike, after years of negative rates, could pull capital back into Japan, lift U.S. yields, and tighten global liquidity. That shift usually pressures risk assets, including crypto.

Regulatory Momentum Builds

In a recent Fox News interview, SEC Chair Paul Atkins said the Bitcoin Market Structure Bill is “about to pass,” showing that Congress and the SEC are finally aligning on a clear framework for the industry. The bill lays out rules for spot Bitcoin ETFs, divides oversight between the SEC and CFTC, and sets basic standards for how crypto exchanges must operate.

And big players are moving fast.

BlackRock filed a new staked ETH ETF. MicroStrategy bought 10,624 BTC after meetings with banks and sovereign wealth funds. Argentina’s central bank is considering allowing banks to offer Bitcoin services.

Liquidity Is the Real Story

M2 money supply has climbed to a record $22.3 trillion. Stablecoin reserves are high and institutions are positioning early.

Gonzales’ takeaway is that this 25-day stretch doesn’t guarantee the next rally, but it could flip the narrative and once liquidity turns, crypto tends to move fast.