- Bitcoin Price Forecast: The US Senate passes the Stablecoin Bill, and here's why Bitcoin enthusiasts are celebrating. Bitcoin's price (Bitcoin-BTC) dropped to settle around $104,450 during yesterday morning's trading session after its recent surge, following the Federal Reserve's decision on its monetary policies and the intensifying geopolitical tensions between Israel and Iran. Despite facing selling pressure recently, markets regained their positive momentum after the US Senate passed the GENIUS Act, a pivotal step in regulating stablecoins within the United States.
BREAKING:
US Senate just passed the Stablecoin Bill!
Programmable, on-chain, 1:1 digital cash with clear rules. Massive acceleration for crypto.
Next up: House ☞ Trump signs.
The U.S. is about to onboard the world. Bullish is an understatement pic.twitter.com/3zpD2xwT4i
— Matan (@matan_si) June 17, 2025
The US Senate has approved the GENIUS Act - aimed at directing and enhancing national innovations related to stablecoins within the United States - with a majority of 68 votes to 30, becoming the first federal law to regulate stablecoins backed by cash equivalents. The law requires stablecoin issuers to maintain 1:1 cash reserves, undergo audits by neutral entities, and obtain the necessary regulatory licenses.
It is worth noting that stablecoins compliant with the new legislation will operate outside the oversight of the U.S. Securities and Exchange Commission (SEC), representing a turning point in favor of crypto innovations. This legal clarity is expected to encourage institutions to adopt stablecoins and expand institutional participation in digital asset markets, with Senator Bill Hagerty describing the law as a strategic step towards making the United States the 'global crypto capital.'
The intensifying geopolitical tensions overshadow the markets.
Geopolitical tensions in the Middle East continue to cause traders to shy away from the markets following the escalation of the conflict between Iran and Israel after President Donald Trump called on Iran to 'unconditionally surrender' in a social media post, leading to increased doubts surrounding the potential role of the United States in this conflict and igniting an atmosphere of uncertainty.
GM to those who say it back!
Where is Bitcoin headed in the next 12 hours? Trump has created so much uncertainty, sellers are in panic mode. Will Iran-Israel tensions send us further down?
At end of day, what are your predictions for $BTC? pic.twitter.com/ZkC6QDnNcF
— Microscopic (@PayMeInSats) June 17, 2025
The overall mood of the Bitcoin market has soured due to fears of escalating regional tensions.
Market participants have become more sensitive to any new geopolitical developments.
Risk aversion has cast a shadow over digital assets, temporarily limiting their gains.
However, investors still see the GENIUS law as a long-term bullish catalyst that could mitigate some of the negative impacts of geopolitical tensions.
The Fed's decision coincides with Bitcoin's price movements forming a technical triangle pattern.
The Federal Reserve kept interest rates steady in the range of 4.25% to 4.50% during its meeting yesterday, as markets searched for indicators suggesting it might lean towards lowering them later in 2025, which could weaken the performance of the US dollar (USD) and support the outlook for Bitcoin (BTC) in contrast.
From a technical standpoint, Bitcoin's price outlook still leans towards decline, as the BTC/USD pair continues to move within a symmetrical triangle pattern on its two-hour chart between a significant resistance barrier at $106,658 and a strong support level at $103,431, while the reading of the 50-period Exponential Moving Average (EMA) stabilized around $105,807 to reflect traders' hesitance, and the MACD momentum indicator's signals turned negative, suggesting a tendency to continue declining unless a decisive breakout occurs that could determine the next direction.
Bitcoin price chart, source: TradingView Suggested trading settings:
Open a short position: by breaking the support level of $103,430
Target 1: $102,180
Target 2: $100,450
Stop loss: High of $105,800
These settings indicate a higher likelihood of continued price decline in the foreseeable future unless the price can decisively break through the upper trendline, and it is advised to monitor a confirmed close of two hours outside the triangle accompanied by increasing trading volumes before making a decision.
With the pace of macroeconomic volatility and regulatory changes accelerating, Bitcoin traders are cautiously monitoring the market and preparing to face potential price fluctuations.
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