Bitcoin enters a critical phase as privacy-focused capital flows, U.S. scrutiny of mining giant Bitmain, and a softer dollar reshape market sentiment. The Winklevoss twins’ $100M push into Zcash highlights rising demand for encrypted transactions, while U.S. security concerns threaten ASIC supply. With BTC sliding into a key demand zone, traders now assess whether oversold signals can spark a recovery.
Winklevoss Twins Expand into Zcash as Privacy Demand Rises
The Winklevoss twins are increasing their exposure to privacy-focused crypto as artificial intelligence drives interest in encrypted transactions. Through their new digital asset treasury, Cypherpunk, they raised $100 million to accumulate up to 5% of Zcash’s total supply.
They describe Zcash as “encrypted Bitcoin,” arguing it is suited for private spending while Bitcoin remains the primary store-of-value asset. Zcash has gained momentum in 2025 as privacy protections become a larger priority for crypto users and developers. The twins argue that expanding privacy and programmability strengthens the broader digital-asset ecosystem, not just individual networks.
Their support also reinforces Bitcoin’s position, as renewed interest in privacy coins may introduce new users to the wider crypto market and increase long-term demand for BTC.
Bitmain Faces US Investigation over National Security Risks
Bitmain, the world’s largest producer of Bitcoin mining hardware, is reportedly under U.S. investigation for potential national-security risks.
According to Bloomberg, officials are reviewing whether Bitmain’s ASIC miners could be remotely accessed or used to disrupt U.S. energy infrastructure. The inquiry, known as “Operation Red Sunset,” is being led by the Department of Homeland Security.
This is not the first time Bitmain has faced scrutiny. In 2024, U.S. authorities temporarily blocked shipments over concerns tied to Huawei, though the equipment was later released. With more than 80% global market share, any restrictions on Bitmain could meaningfully affect U.S. mining operations.
Bitmain has denied the allegations and states it cannot remotely control its machines. Still, the uncertainty around ASIC supplies may lift domestic mining costs and reduce near-term capacity. Over time, tighter hardware availability could reinforce Bitcoin’s scarcity narrative, even as it generates short-term anxiety in mining and price markets.
Bitcoin Technical Outlook
Bitcoin price prediction remains bearish, as BTC continues to unwind after a steep decline, sliding back into the broad $83,000–$84,000 demand zone that supported major rebounds in March and June. The selloff has been orderly rather than panicked, with daily candles printing long lower wicks and smaller bodies, early signs that selling pressure is losing momentum as price approaches historical accumulation territory.
BTC has now completed a full retracement of the D-to-C leg of the prior harmonic structure, placing price directly inside the green demand block. This zone also aligns with the long-term rising trendline from October 2023, creating a technical confluence that typically attracts institutional bids.
Momentum indicators are flashing oversold extremes. The RSI at 22 is the lowest reading since the FTX capitulation, and Bitcoin has historically posted strong multi-week recoveries whenever RSI dips below 25, especially when paired with exhaustion candles like hammers or doji near support.
A relief rebound would likely retest the $88,000–$89,000 pocket, followed by a move toward the $96,000–$97,000 breakdown zone. The first structural confirmation of strength would be a daily close back above the 20-day EMA near $94,000. Failure to defend the current zone exposes the deeper support at $74,500.
Potential Trade Opportunity
For novice traders, the most straightforward setup is to wait for a bullish reversal candle, a hammer, bullish engulfing, or long-wick doji, inside the demand zone. That candle signals that buyers are stepping in.
A typical swing setup would be:
- Entry: On confirmation of a bullish reversal above $84,000
- Stop-loss: Below $74,500 (beneath demand zone)
- Targets: $88,500 → $97,000 → $111,000
This region often marks the transition from fear to accumulation. If buyers reclaim momentum, Bitcoin could rebuild toward the $124,000 peak into early 2026.
Bitcoin Hyper: The Next Evolution of BTC on Solana?
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As Bitcoin activity climbs and demand for efficient BTC-based apps rises, Bitcoin Hyper stands out as the bridge uniting two of crypto’s biggest ecosystems. If Bitcoin built the foundation, Bitcoin Hyper could make it fast, flexible, and fun again.
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