Bitcoin (BTC) has recently been consolidating above $114,000, signaling a period of calm after months of extreme volatility. This quiet strength has led many investors to wonder whether a major price explosion is imminent. Trading at $114,300, Bitcoin has gained over 5% in the past week, reflecting a growing sense of confidence in the market. Cryptocurrency expert Lark Davis suggests that the current stability might be the calm before a significant surge, describing this phase as “the silence before expansion.”
Davis points out that easing inflation and expected interest rate cuts by central banks in early 2026 have helped stabilize the market. This favorable macroeconomic environment is allowing investors to remain confident and exposed to risk, without the fear of sudden market crashes. According to Davis, investor conviction is now outweighing excitement, suggesting that Bitcoin is on the verge of a major price move.
Bitcoin’s Stability Sets the Stage for Potential Altcoin Rally
While Bitcoin remains strong, the altcoin market has largely struggled in 2024 and 2025, with many altcoins underperforming. However, a rare MACD crossover pattern that has previously signaled major altcoin rallies in 2017 and 2021 is once again making an appearance. This suggests that the altcoin market could be nearing a turning point, and a significant rally may be on the horizon.
Additionally, Bitcoin’s recent surge, alongside a decline in gold prices, could signal a broader shift in investor preferences. Bitcoin may be capturing some of gold’s market share, with a 1% shift in gold’s value potentially pushing Bitcoin’s price to $134,000. A 5% shift could drive Bitcoin’s price to $242,000, further solidifying Bitcoin’s position as a digital safe haven.
US-China Trade Deal Could Impact Global Markets and Bitcoin’s Future
The ongoing US-China trade negotiations could further impact Bitcoin’s future. US Treasury Secretary Scott Bessent revealed that a framework for a trade deal is in place, which includes discussions on TikTok’s operations in the US and easing China’s controls on rare earth minerals.
Additionally, China is set to resume significant soybean purchases from the US. These developments suggest a de-escalation in trade tensions, which could improve investor sentiment and have a positive effect on global markets, including Bitcoin. If these negotiations continue to unfold smoothly, it could contribute to further stability and growth for Bitcoin.