In-Depth Analysis: Cryptocurrency’s Milestone and Its Future Impact
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Historic Legislation: The GENIUS Act’s Impact on Cryptocurrency
Recently, the cryptocurrency sector celebrated a significant achievement as the United States Senate approved the GENIUS Act. This groundbreaking legislation establishes the first federal guidelines for stablecoins, representing a monumental advancement for digital assets and potentially the Bitcoin market.
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In light of this transformative development, US Secretary of the Treasury, Scott Bessent, projected remarkable growth for stablecoins, anticipating the market to reach $3.7 trillion by decade’s end. Bessent emphasized, “A robust stablecoin ecosystem will propel private sector demand for US Treasuries, which are foundational to stablecoins.”
The Ripple Effect: Stablecoin Surge and Bitcoin’s Future
Beyond its implications for traditional financial sectors, the exponential increase in stablecoin liquidity is poised to significantly influence the crypto market, particularly Bitcoin. A prominent crypto journalist has explored how the Bitcoin price might respond to this surge in stablecoin market value.
Bitcoin’s Potential for a Super Rally
In a recent analysis posted on June 20 on the X platform, renowned crypto journalist Rafaela Romano examined Bitcoin’s price trajectory in relation to the expected stablecoin market boom following recent legislative advancements. This analysis hinges on the critical connection between stablecoin liquidity and Bitcoin’s market performance.
Romano’s post on X highlighted the Stablecoin Ratio Channel (SRC), which signals sustained market trends based on stablecoin supply fluctuations. This metric indicates that changes in stablecoin supply can drive significant market movements over extended periods.
The SRC (Long-Term) employs a 90-day Relative Strength Index (RSI) to the Stablecoin Supply Ratio (SSR) oscillator, further smoothed by a 7-day EMA. For context, SSR represents the ratio between Bitcoin supply and stablecoin supply. Thus, a declining SRC suggests faster growth in stablecoin supply compared to Bitcoin. As depicted in the chart, when SRC hits the green line, it signals an oversold condition for Bitcoin, often preceding prolonged price rallies.
If the stablecoin market capitalization experiences a 15-fold increase in the coming years, the SRC value is likely to drop beneath the green line. Consequently, Romano envisions a “super multiple” for Bitcoin’s price.
Current Bitcoin Market Overview
At the time of writing, Bitcoin is valued at approximately $103,550, marking an almost 1% decrease in the past 24 hours.
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