On Thursday (May 22), Bitcoin rose above $110,000, benefiting from the cooling of trade war tensions and the Texas House of Representatives formally passing the Strategic Bitcoin Reserve Act SB21. A new report shows that Americans' Bitcoin holdings have exceeded gold, becoming the country's emerging reserve asset.
Positive news on US Bitcoin strategic reserve and stablecoin bill
The Texas House of Representatives officially passed the Strategic Bitcoin Reserve Bill SB21, which is a milestone for the cryptocurrency industry. Once the state governor Greg Abbott signs the SB 21 bill, the United States will officially establish a Bitcoin reserve.
The (Guidance and Establishment of a United States Stablecoin National Innovation Act) (GENIUS Act) was passed by the U.S. Senate on a procedural vote of 66-32 on May 20 after failing to gain support from key Democratic figures on May 8 and is currently being debated in the Senate.
The bill seeks to establish clear rules for stablecoin collateralization and require compliance with anti-money laundering laws.
Andrei Grachev, managing partner of DWF Labs and Falcon Finance, said: “This bill not only regulates stablecoins, it also legalizes them. It sets clear rules, and clear rules bring confidence. This is exactly what institutions have been waiting for.”
He added that stablecoins are no longer just experiments in cryptocurrency. They are a better form of money. Faster, simpler and more transparent than fiat. It is only a matter of time before they become mainstream.
Americans' Bitcoin holdings surpass gold and become an emerging reserve asset
According to River, 49.6 million Americans currently own Bitcoin, while only 36.7 million Americans own gold.
Gold was the primary reserve asset of the United States until 1971, underpinning the value of the dollar and serving as a trusted store of value for many Americans. While gold remains an important investment asset, its role has diminished over time.
Today, Bitcoin is held by more individuals in the United States than gold.
At the national level, the U.S. government is staying ahead of global competitors such as China by embracing Bitcoin. Earlier this year, the White House officially designated Bitcoin as a strategic reserve asset. The federal government's holdings of Bitcoin currently account for twice its market share of global gold reserves.
Will the U.S. Treasury auction affect risky assets such as Bitcoin and stocks?
Well-known opinion leader Phyrex Ni said that the auction of new bonds is equivalent to sucking liquidity. The auction of US bonds is a net financing behavior, especially when repaying old debts and the fiscal deficit continues to expand. If investors are not optimistic about the current interest rate (expecting that the subsequent interest rate will be higher), they must offer a higher winning rate to attract investors' participation, which directly increases the Ministry of Finance's bond issuance costs and also drives up the yield of the entire secondary market.
He went on to point out that rising yields mean funds flowing out of risky markets, making bonds more attractive, attracting funds that should have been invested in risky assets such as stocks and cryptocurrencies into the bond market, which are particularly sensitive to highly valued assets.
Rising borrowing costs are equivalent to actual downward pressure on the economy. Higher medium- and long-term yields push up corporate financing rates and mortgage rates, which not only suppress corporate profit expectations, but also reduce market confidence in future growth.
"Another slightly good thing this time is that the proportion of foreign investors buying 20-year U.S. Treasury bonds has increased slightly, slightly reducing the bond market's bloodsucking of U.S. domestic funds," he finally mentioned.
Bitcoin Technical Analysis
Veteran trader Peter Brandt has predicted that Bitcoin could rise to $150,000 in the coming months, after commenting on Bitcoin hitting new highs and revealing that he currently holds a long position in the flagship cryptocurrency.
However, he noted that all-time highs are not “technically significant” because bull markets always set new all-time highs. He then questioned whether Bitcoin is expected to break through the peak of $125,000 to $150,000 in late August.
Crypto analyst Titan of Crypto asserts that the 2025 Bitcoin price target of $135,000 is still valid. He further claims that the plan is unfolding perfectly.
