Bitcoin's Market Movements
Bitcoin fell below its 365-day moving average on Tuesday, breaching a critical indicator that analysts use to gauge market direction. Bitcoin briefly dropped below $99,000, touching $98,900 according to CoinMarketCap data.
Julio Moreno, head of research at CryptoQuant, wrote on X that the 365-day MA served as final confirmation for the 2022 bear market start. He said the price needs to cross back above quickly to maintain bullish momentum.
This marks the second time in 2025 that Bitcoin has dropped below the metric. Crypto analyst Decode shared data showing Bitcoin briefly fell below the 365-day MA in April before recovering.
Bitrue research analyst Andri Fauzan Adziima said Tuesday's dip officially marked a technical bear market, with Bitcoin down over 20% from its $126,000 all-time high in early October. However, he characterized this as the fourth correction in the 2025 bull cycle rather than a prolonged downturn.
Historical data shows 40% rebounds within 60 days after 20% drawdowns during bull markets, Adziima noted. He described the current movement as a routine cleansing.
Tom Cohen, head of investments at Algoz Technology, said $100,000 represents the critical level. He believes this barrier must be decisively broken before a true bear market scenario emerges.
Cohen suggested markets could be setting up for a Santa Claus rally while $100,000 holds. He stated much depends on macro events, President Trump's policy decisions, and the December U.S. rate decision.
Circle's USDC Policy Change
Circle has updated its USDC terms of service to permit legal firearm purchases, clarifying previously ambiguous language about weapons transactions. The stablecoin issuer now prohibits only weapons purchases "in contravention of applicable laws."
Previous terms appeared to block all firearms, ammunition, and explosives transactions without legal distinction. The updated language on Circle's website suggests users can purchase firearms with USDC where legally permitted.
Wyoming Senator Cynthia Lummis praised the change on X, stating she's glad Circle now allows legal firearm purchases after discussions with the company. She said aligning terms with legal requirements defends constitutional rights and prevents financial systems from being weaponized against law-abiding gun owners.
The policy update coincides with increased stablecoin regulation under President Trump's administration. Republicans passed the GENIUS Act in July to regulate payment stablecoins.
Circle CEO Jeremy Allaire and Tether CEO Paolo Ardoino attended the GENIUS Act signing ceremony. The legislation established a regulatory framework for payment stablecoins in the United States.
Whether Circle's move responded to lawmaker feedback or aimed to strengthen ties with the Trump administration remains unclear. The company has not commented on the policy change at time of publication.
It's uncertain how Circle could have enforced the previous restrictions or if they existed since USDC launched in 2018.