The Bitcoin (CRYPTO: BTC) price currently stands at US$45,721 (AU$62,630).
While that's down about 1% over the past 24 hours, Bitcoin remains up 20% over the past 7 days. And its year-to-date returns are back up to 57%.
The recent rally has some crypto enthusiasts forecasting that the token will sail past its mid-April record highs of US$64,829 to hit US$100,000 by year's end.
We'll look at their bullish forecasts shortly.
But first, why has Bitcoin retraced over the past 24 hours?
Image source: Getty Images
All eyes on the US Congress
United States President Joe Biden's US$1 trillion infrastructure package got the green light from the US Senate yesterday (overnight Aussie time). The bill passed 69 to 30, opening up massive new funding for the nation's airports, bridges and roads.
So, why is that putting pressure on Bitcoin and other cryptos?
Because the bill includes new regulatory oversights and tax implications for virtual currencies.
Addressing crypto investors' concerns on the issue, Lucia della Ventura, legal compliance manager at financial software company Ledgermatic, told CoinDesk:
The crypto sector itself is new, and leaning on a nascent technology industry for taxes could impair its growth. It is necessary to wait for the final vote, taking into account that several amendments have been tabled as they can potentially change the impact of the bill for companies.
Those amendments were blocked in the final bill, likely leading to today's Bitcoin price retrace.
Ethereum (CRYPTO: ETH), the world's second largest crypto by market cap, is also edging lower, down a slender 0.2% over the past 24 hours to US$3,137.
But the spectre of an added regulatory and tax burden out of the US hasn't derailed Bitcoin bulls' enthusiasm following the recent rally.
Bitcoin to US$100,000?
Craig Erlam is a senior market analyst at OANDA Europe. According to Erlam (quoted by Bloomberg), "Bitcoin has found its groove once more over the last week. Now very much back into bullish territory, the question is how far it can go this time around."
Meltem Demirors, chief strategy officer at crypto fund provider CoinShares, shares Erlam's bullish outlook, saying Bitcoin is "roaring back".
He said that the new regulatory measures passed within the US infrastructure bill aren't likely to impede the current bull run. In fact, Demirors says:
[M]any investors perceive this as positive news and a positive catalyst because it's clearing up a lot of the confusion or some of the uncertainty. And I think what's being demonstrated as well is the crypto community is no longer some esoteric corner of finance.
Meanwhile, Bloomberg Intelligence's Mike McGlone is eyeing the token breaking above US$100,000. Comparing Bitcoin to Ether's run higher, McGlone said, "It's still got plenty of room to get the old high. And guess what? If it just follows Ethereum, it goes to $100,000."
Joining the ranks of Bitcoin bulls is Fundstrat Global Advisors' Tom Lee. Lee believes Bitcoin could hit US$100,000 before we ring in the New Year.
Foolish takeaway
Before anyone runs out and loads up on Bitcoin, Ether, or some of the smaller high performing altcoins, remember that just a few weeks ago, many crypto experts were forecasting Bitcoin could retrace to US$20,000 before finding a floor.
A fall to US$20,000, or far lower, certainly remains a possibility.
As for investors eyeing a potential charge higher for the world's leading crypto, never invest more than you're prepared to lose.
