Bitcoin (BTC) reached a local low of $104,480 today, up 0.50%. Following BTC, Ethereum (ETH) and Dogecoin (DOGE) prices have increased by 1.48% and 0.86%, respectively, at the time of writing. The bullish momentum can be attributed to the passage of the GENIUS stablecoin bill. The bill passed a key procedural vote (to end debate) with a margin of 66 votes in favor and 32 against. This ensures that the bill has enough support to limit debate and ultimately proceed to a full Senate vote. Another reason for the recent market enthusiasm can be observed through blockchain data: as BTC's price gradually approaches its historical high, spot investors are buying the dips.
Reasons for the surge in prices of Bitcoin, Ethereum, and Dogecoin today
As mentioned above, there are two reasons for the surge in the prices of Bitcoin, Ethereum, and Dogecoin today:
The GENIUS bill has passed in the procedural vote.
Spot investors (including retail and major U.S. institutions) are buying BTC during the price dip.
(Guidance and establishment of the National Innovation Act for U.S. Stablecoins) (GENIUS) has achieved an important milestone today in the U.S. Senate vote. The bill passed in the procedural vote with 66 votes in favor and 32 against, moving on to the full Senate vote. This is positive news for the cryptocurrency market. According to CoinGecko, the current market capitalization of the cryptocurrency industry is approximately $3.48 trillion, accounting for 1.3%.
The second and most important reason is that Bitcoin is being sought after by spot investors. CoinGlass data shows that the permanent CVD (Cumulative Volume Delta) is declining, while the spot CVD is on the rise.
Moreover, the depth of spot orders is at 2%, indicating that the order book continues to rise as Bitcoin's price falls. This suggests that investors are buying BTC during market pullbacks. While permanent investors are also buying BTC on dips, their positions are often short-term, thus having less long-term impact. Regardless, their contributions are helping to drive Bitcoin's price up, which in turn drives up the prices of Ethereum and Dogecoin.
With the rise of Bitcoin and other altcoins, the cryptocurrency market seems optimistic and is expected to rise further. Particularly, Bitcoin is just one step away from returning to its historical high.
ETH has retraced 2% during the day and is currently priced at $2,542. Despite the short-term pullback, Ethereum remains above key support levels. Dogecoin (DOGE) is trading at $0.224 today, nearly 3% down from its intraday high of $0.230.
How will the cryptocurrency market develop next?
If Bitcoin returns to its historical high of $109,000, it will attract a lot of speculation and retail investors. A significant surge in buying power could easily push it past this high and set new records. This development may lead to an extended bullish trend in the cryptocurrency market, lasting longer than in recent weeks. It may also trigger explosive growth in altcoins, leading to a peak season for altcoins.
According to options data, Gamma Exposure (GEX) indicates that key resistance levels for upward movement include $110,000, $115,000, $120,000, and $125,000. These levels are concentrated areas for call options. The key support levels for downward movement are around $100,000 for put options, while $95,000 is another critical level to watch. These levels often serve as key support and resistance, potentially impacting BTC's price movements.
