empty
26.05.2025 03:37 PM
Bitcoin Will Save Your Money

The market shoots first and asks questions later. The surge of BTC/USD to a record high above 111,000 was fueled by investor optimism about the imminent adoption of U.S. stablecoin legislation by Congress. As a result, the cryptocurrency outpaced other financial market assets by a wide margin. Traders have even begun to question whether it now qualifies as a safe-haven asset.

Performance of Bitcoin vs. Other Financial Assets

This image is no longer relevant

At first glance, a potential favorable ruling by Congress on stablecoins seems illogical. Their issuers have accumulated $250 billion, surpassing the deposit base of regional U.S. banks. Some, including industry leader Tether, have even begun to say they are ready to pay interest on savings—just like traditional American banks. Naturally, banks don't like this competition, which raises questions about the logic of such legislation.

In truth, the issue lies in the U.S. government's intention to distinguish between domestic and foreign stablecoin issuers—a move that could create significant hurdles for companies like Tether. It's no surprise that the industry leader is approaching Congress's actions with caution.

Stablecoin Market Structure

This image is no longer relevant

Nature abhors a vacuum. Given Donald Trump's penchant for all things American, it's reasonable to assume that Tether is being deliberately pushed out of the market. Its place is ready to be taken by commercial banks. For example, Bank of America has announced it is prepared to issue its own token if legislation permits.

Thus, congressional activity around stablecoins may in reality impose more restrictions than it creates opportunities. It's unlikely to attract a wave of new institutional investors. Whether it will be worth it in the end remains to be seen.

For now, euphoria continues to dominate the crypto market, and its correlation with U.S. stock indices appears broken. The S&P 500 is deeply concerned that uncertainty in White House policy could eventually trigger a recession—bad news for equities. At the same time, BTC/USD's rise amid fiscal woes and tariff threats has given Bitcoin a new label: safe-haven asset.

This image is no longer relevant

There are also rumors that, along with rising geopolitical tensions and China's economic expansion, cryptocurrency will help dethrone the U.S. dollar as the world's primary reserve currency. Investors are increasingly losing faith in the greenback. Even Scott Bessent's comments that "the dollar isn't as weak as it seems" have failed to impress. The fall in the USD index is mainly due to the strengthening of other global currencies.

From a technical perspective, on the BTC/USD daily chart, if the bulls fail to retake 111,500 or cannot hold above the pivot level of 109,350, the likelihood of a reversal pattern (1-2-3) increases. If this pattern is triggered by a drop below 106,750, it would make sense to consider selling Bitcoin. Until then, the strategy remains to buy on declines.

Marek Petkovich,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

The Yen Has Lost Its Bullish Momentum

The Consumer Price Index (CPI) in the Tokyo region declined in June from 3.4% to 3.1% year-over-year, marking the first signal so far that may indicate a slowdown in price

Kuvat Raharjo 12:21 2025-06-27 UTC+2

EUR/JPY. Analysis and Forecast

The EUR/JPY pair is regaining positive momentum during today's trading session, reversing its recent decline.The euro continues to benefit from the prevailing sentiment of selling the U.S. dollar

Irina Yanina 12:17 2025-06-27 UTC+2

Inflation in Canada Remains Too High – USD/CAD May Accelerate Its Decline

Inflation in Canada remains too high to expect a rate cut by the Bank of Canada at its upcoming meeting. In April, inflation sharply slowed to 1.7% y/y, and most

Kuvat Raharjo 11:16 2025-06-27 UTC+2

XAU/USD. Analysis and Forecast

Gold is drawing renewed selling interest today after breaking below the key $3300 level. Traders are awaiting the release of the U.S. Personal Consumption Expenditures (PCE) Price Index, which

Irina Yanina 10:47 2025-06-27 UTC+2

PCE Index Data Unlikely to Significantly Impact Market Dynamics (Potential for Renewed Growth in EUR/USD and Bitcoin)

The easing of tensions in the markets, following a pause in the military conflict in the Middle East, supports the return of the previous paradigm—an increase in demand for stocks

Pati Gani 09:52 2025-06-27 UTC+2

The Market Is Off the Leash

Greed has returned to the markets. While professionals warn about the need for caution amid geopolitical uncertainty, trade wars, and the state of the U.S. economy, retail investors are once

Marek Petkovich 09:16 2025-06-27 UTC+2

What to Pay Attention to on June 27? A Breakdown of Fundamental Events for Beginners

There are relatively few macroeconomic reports scheduled for Friday. Some experts refer to the PCE indicator as "important" and "the Fed's favorite," but we do not share that view

Paolo Greco 07:02 2025-06-27 UTC+2

GBP/USD Overview – June 27: History Doesn't Repeat Itself

The GBP/USD currency pair continued its strong upward movement throughout Thursday. Since the beginning of the week, the U.S. dollar has lost "only" 330 pips. As we've previously stated

Paolo Greco 03:41 2025-06-27 UTC+2

EUR/USD Overview – June 27: Can Trump Balance the Trade Deficit?

The EUR/USD currency pair is in a "free rise" (similar to the term "free fall"). The dollar is once again plunging into the abyss, just as we repeatedly warned. It's

Paolo Greco 03:41 2025-06-27 UTC+2

Powell, Trump, and Everyone Else

What will change with the arrival of a new Federal Reserve Chair? This is a rather important question, and the answer to it may already have implications for the U.S

Chin Zhao 00:08 2025-06-27 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.