Bitcoin and altcoin continued to surge on Thursday, even as the US stock market continued to slump.
Bitcoin (BTC) jumped to a record high of $111,860, with market capitalizations of all cryptocurrencies jumping to $3.5 trillion. In contrast, the Dow fell about 100 points, adding to 816-point drop on Wednesday.
Bitcoin and altcoin are climbing after the US Senate passed the Genius Act, the first cryptocurrency regulation focused on stable rocks.
The law requires Stablecoin issuers to maintain 100% reserve support on high-quality assets such as the US Treasury Department and the dollar. We also require detailed monthly disclosure of spare configurations.
Other provisions include federal and state oversight. Stablecoin publishers with assets of over $10 billion are regulated at the federal level, but the state oversees small publishers with assets of less than $10 billion.
The passing of genius acts is important, especially as it helps protect the crypto industry, following the collapse of Terra in 2022 and other major failures like FTX. It also provides the much-anticipated legal clarity.
Bitcoin as a safe haven after downgrades US credit ratings
Bitcoin and altcoin are rising as investors see BTC as a safe haven asset after Moody’s downgrades its US credit rating.
Safe-Haven appeal pushed investors into the Spot Bitcoin ETF. This added more than $4.2 billion inflows this month, bringing the cumulative total to $43 billion.
In that statement, Moody’s pointed to increased U.S. debt and interest payments and policies in Washington.
For example, the House has passed a “big, beautiful bill” that adds about $3.8 trillion in additional debt, according to some estimates.
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The bill will extend the 2017 tax cuts and introduce new ones, including tip deductions and overtime pay. It also expands the child tax credit and includes a new advanced tax credit of $4,000.
The fear of rising US debt and deficits has led investors to be pulled back from US assets, particularly stocks. The US dollar index fell to 99.6, but bond yields have skyrocketed. Yields rose to 5.1% in 2010 and 4.6% in 2010.
Bitcoin prices have powerful technology
BTC Price Chart | Source: crypto.news
Bitcoin breakouts are also supported by technical indicators. On the daily chart, I formed a pattern of cups and handles, narrowly avoiding the cross of death. The cross of death occurs when the 50-day and 200-day moving averages are downwards. This same setup was mostly rolled out last August, but was avoided.
The cup pattern is approximately 30% deep. Measuring the distance from the breakout level suggests a potential benefit to $141,000.
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