Cryptocurrency Surge Amid US Market Downturn
Cryptocurrencies, including Bitcoin, are soaring despite 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 requires stablecoin issuers to back thier tokens with high-quality assets like US Treasuries and dollars. Monthly disclosures of reserve compositions are also mandated.
- Issuers with over $10 billion in assets will face federal oversight.
- Smaller issuers will be regulated by states.
The GENIUS Act is crucial for the crypto industry, providing legal clarity and stability after major failures like Terra and FTX.
Bitcoin is also gaining traction as a safe-haven asset following Moody’s downgrade of the US credit rating. This downgrade reflects concerns over rising US debt and interest payments.Investors are flocking to spot Bitcoin ETFs, adding over $4.2 billion this month, totaling $43 billion.
technical indicators support Bitcoin’s rise. The daily chart shows a cup and handle pattern, hinting at potential gains toward $141,000. This bullish setup avoids a death cross,a bearish signal.
As the US Dollar Index drops and bond yields rise, investors are shifting towards Bitcoin, viewing it as a safer investment option.
