It’s been a roller coaster ride for Bitcoin (BTCUSD) investors in the last six months. The crypto asset touched all-time highs of $126,223 in October 2025. While market participants were expecting the bull run to sustain, Bitcoin reversed sharply and currently trades lower by 46.8% at $67,704. 

While the steep correction might have created some panic, it’s important to note that deep correction after a big rally is not uncommon for Bitcoin. As an example, Bitcoin dropped from $69,000 towards the end of 2021 to $15,000 by the end of 2022. There are similar instances through the price history of Bitcoin. 

Therefore, the deep correction might be a good time to gradually accumulate the crypto asset. From the perspective of wider adoption, even Bitcoin skeptics seem to be considering some positions. Recently, Goldman Sachs CEO David Solomon disclosed that he holds very limited amounts of Bitcoin. This is a significant shift from his previous opinion that there is no “real use case” for the cryptocurrency. 

Clarity Act as a Catalyst

One factor that has contributed to volatility and relatively low investor participation is regulatory headwinds. However, this could change once the Clarity Act is approved. Broadly, the act targets to provide clearer regulation for digital assets. 

U.S. Treasury Secretary Scott Bessent recently commented that it was “important for Congress to pass a bill to create federal rules for digital assets.” Bessent also opined that the act would give "great comfort to the market" in times of volatility. 

Coinbase (COIN) CEO Brian Armstrong is also hopeful that the Clarity Act is likely to be passed “in the next few months.” In addition, popular prediction market platform Polymarket is showing a 90% probability of Crypto Act approval. 

Therefore, with a significantly high probability of regulatory headwinds waning, it’s likely that Bitcoin will be supported at lower levels. Standard Chartered believes that Bitcoin can drop to $50,000 before recovering to $100,000 by the end of 2026. 

Bitcoin Adoption and Growth in Money Supply

Importantly, as of December 2025, the Bitcoin in circulation was 19.9 million. Further, the maximum supply is restricted to 21 million with the final Bitcoin expected to be mined in 2140. 

Therefore, the supply of the digital asset is restricted compared to fiat currencies. To put things into perspective, global money supply has increased from $1 trillion in 1970 to $100 trillion. With the likelihood of continued growth in money supply, hard assets like gold, silver, and Bitcoin (among digital assets) are likely to trend higher. According to a base case estimate by Wisdom Tree analyst, money supply is likely to grow at 5% annually, reaching $134 trillion by 2030. Assuming that Bitcoin captures 12% of the hard-asset basket, the price of the crypto asset is likely to touch $275,000 by the end of the decade. 

Notably, Bitcoin adoption curve indicates that global adoption will increase by 10x in less than eight years. Further, a 40x growth in adoption is likely in less than 20 years. With limited supply, growing adoption will imply price trending higher. 

Concluding Thoughts

Bitcoin continues to be in a phase of price discovery amidst the need for regulatory clarity. However, there is little doubt on the point that the crypto adoption continues to increase. And so, the correction in Bitcoin seems like a prime buying opportunity with the “Clarity Act” likely to be a near-term positive catalyst. In the long term, limited supply is likely to support the uptrend. 

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