Based on regulatory developments and shifts in market sentiment, it feels like a rebound in crypto assets is drawing nearer.

The market structure bill that the Senate is scheduled to mark up next week is drawing attention. Senate Banking Committee Chair Rick Scott said this bill will help spur corporate growth in the crypto asset industry and lead to the creation of domestic jobs. The CLARITY Act, which has already passed the House, is also becoming increasingly likely to be approved in the Senate. Traders on Polymarket are viewing it as highly favorable in terms of the likelihood that it will become law. Following last year’s GENIUS bill, it could become the second most important crypto-related piece of legislation.

Technically, Bitcoin is also forming an interesting pattern. It is drawing an ascending triangle, with a horizontal resistance line at $94,468 and a diagonal trendline connecting the lows from last November. BTC is currently trading around $77,680, but if it breaks through this resistance, there is a strong possibility it could rise beyond $100k. If that happens, other altcoins would likely move up in tandem.

Market sentiment has also changed substantially. The Fear and Greed Index is shifting from an extreme fear zone (10) to a neutral zone (40). This suggests that investors are beginning to move away from a risk-averse stance. Historically, when this index shifts into the greed zone, crypto asset prices tend to rise strongly.

The macro environment is also a tailwind. With U.S. employment data coming in below expectations and inflation calming down, expectations for the Fed to cut interest rates are increasing. In periods of falling interest rates, funds are more likely to flow into risk assets such as Bitcoin. In addition, global M2 money supply is also expected to increase again this year, which is a positive environment for the crypto market.

Open interest in futures and stablecoin outflows from exchanges have also bottomed out. These are signals that strong support is forming in the market. With multiple factors converging, the possibility of a crypto rally appears to be increasing with certainty. Regulatory tailwinds, a technical bullish setup, improved market sentiment, and a turn for the better in the macro environment—having all of these lined up means a short-term rebound is entirely plausible.