Yesterday, Bitcoin's volatility was quite large. In terms of fundamentals, the biggest news last night was that the GENIUS stablecoin bill passed the Senate's second procedural motion vote. Although this does not mean the bill has passed, the next steps are for the Senate to debate and amend, the Senate to vote, the House to review, coordination between the two houses, and presidential signing. Although there is still a long way to go before the bill becomes law, it is expected that the earliest it could happen would be in August. However, this stablecoin bill has a significant impact on crypto.
What specific benefits does this bill bring to crypto? First, it brings a huge capital exposure. The stablecoins we currently use, USDC and USDT, are still considered niche assets in the eyes of Wall Street. The compliance and regulatory restrictions are what limit large capital from entering. If the stablecoin bill passes, then institutions will have no more concerns. Some institutions predict that this bill will lead to the stablecoin market size increasing from 200 billion to 2 trillion dollars. If this is true, liquidity for altcoins and a bull market will no longer be a worry. During this period, Bitcoin's position at 100,000 is solid. Technically, there is a slight top divergence on the daily level, while the weekly trend remains healthy. Pay more attention to fundamental information, the Federal Reserve's interest rate cuts, and changes in volume. In the long-term, a weekly golden cross is forming, and a new round of market trends is expected to start! Next, the second phase of FTX compensation is coming, and this part is all in USDT, amounting to 5 billion dollars, representing the most direct purchasing power, which will be visible around May 30. Whether it can directly translate into purchasing power is crucial.
The purchasing volume of spot ETFs has not continued to decline but has started to increase; although not as large as before, it is beginning to rebound. Of course, this does not necessarily mean the market will rise, but it is positively correlated; each price increase is accompanied by an increase in ETF purchasing power.
Recently, the Ethereum Foundation launched a trillion-dollar security plan.
Why is it important for the Ethereum Foundation to launch a trillion-dollar security plan now? Because increasing off-chain TVL is crucial for Ethereum to become the foundational infrastructure of crypto finance, simply put, there are two points!
1. The introduction of off-chain incremental assets will directly raise the security value pricing of Ethereum.
2. RWA will activate real transactions and financial activities within the Ethereum ecosystem.
The purist spirit of DeFi will be reborn in institutional logic!
In the past, mainstream coins were LTC, ETH, BCH, etc., classified as mainstream and altcoins based on large market capitalization.
In the future, there will only be two types of mainstream coins.
One is BTC, the absolute top 1; any positive news for cryptocurrencies is also good news for Bitcoin.
The other is USD, stablecoins like USDT and USDC, issued by the U.S. government as the actual project party.
Other VC coins, meme coins, and platform coins are all referred to as version coins, each version tells a story with a batch of tokens!
Bitcoin is a long-term hard asset, while altcoins have changed from before; previously, altcoins were few, had low market caps, and were all in circulation, but now, most coins are backed by air, with an increasing number, extremely high market caps, and continuous unlocking for cashing out.
So there will no longer be a broad rise in altcoin seasons; there will only be a rebound after a significant drop or structural local opportunities, like the previously hyped AI and meme sectors!
Finally, let's review a few coins recommended in the article.
First is RAY, currently around 3.1, slightly in the red, but it's not a big deal, just hold on!
Next, fan tokens: LAZIO, PORTO, CITY, and OK's MENGO.
Last time I recommended four fan tokens at once: LAZIO, PORTO, CITY, and OK's MENGO.
Currently, there is a slight loss, but the extent is small and not significant! From the entry point to now, this loss is basically outperforming 90% of the coins, and there's no need to watch the overall market trends. We can exit before the Club World Cup next month, so continue to place high orders!
That's all I want to share today, I'm July, and you can follow the daily article updates!
Lone travelers are swift, while many travelers go far! Welcome everyone to discuss and exchange market trends together!
