Cryptocurrency surge Amid US Market Downturn
On Thursday, Bitcoin and altcoins soared, defying the US stock market’s downturn. Bitcoin reached an all-time high of $111,860, pushing the total crypto market cap to $3.5 trillion. Meanwhile, the Dow Jones opened lower, continuing Wednesday’s 816-point drop.
This crypto rally follows the US Senate’s passage of the GENIUS Act, a groundbreaking regulation for stablecoins.The act mandates that stablecoin issuers maintain 100% reserve backing with high-quality assets like US Treasuries. Monthly disclosures on reserve compositions are also required.
- Federal and state oversight for stablecoin issuers based on asset size.
- Stablecoin issuers with over $10 billion in assets will face federal regulation.
- Smaller issuers will be overseen by states.
Other key points include:
The GENIUS Act is crucial for the crypto industry, providing legal clarity and safeguarding against past failures like Terra and FTX.It also boosts Bitcoin’s appeal as a safe haven, especially after Moody’s downgraded the US credit rating due to rising debt and interest payments.
Spot Bitcoin ETFs have seen over $4.2 billion in inflows this month, totaling $43 billion. The US Dollar Index has dropped to 99.6, and bond yields have surged, pushing investors towards Bitcoin.
technically, Bitcoin’s price is strong.The daily chart shows a cup and handle pattern, suggesting potential gains toward $141,000. This setup avoids a death cross, a bearish signal, indicating a positive trend.