Bitcoin price forecast: The U.S. Senate passes the stablecoin bill, and here’s why Bitcoin enthusiasts are celebrating its approval. The price of Bitcoin (BTC) fell to around $104,450 during trading sessions yesterday morning after its recent surge, following the U.S. Federal Reserve's decision regarding its monetary policies and increased geopolitical tensions between Israel and Iran. Despite facing recent selling pressures, markets regained positive momentum after the U.S. Senate approved the GENIUS Act, a pivotal step in the regulation of stablecoins within the United States.
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 U.S. Senate has approved the GENIUS Act - aimed at directing and enhancing national innovations related to stablecoins within the United States - by a majority of 68 votes to 30, making it the first federal law to regulate stablecoins backed by cash equivalents. The law requires stablecoin issuers to maintain cash reserves at a 1:1 ratio, undergo audits by neutral parties, and obtain the necessary regulatory licenses.
It is noteworthy 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 facilitate increased institutional participation in digital asset markets, with Senator Bill Hagerty describing the law as a strategic step towards transforming the U.S. into the "crypto capital of the world."
Escalating geopolitical tensions loom over the markets.
Geopolitical tensions in the Middle East continue to deter traders from the markets due to escalating conflict between Iran and the Israeli entity following U.S. President Donald Trump's call for Iran to "unconditionally surrender" in a social media post, leading to increased doubts surrounding the potential role of the U.S. 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 sentiment in the Bitcoin market has worsened due to fears of escalating regional tensions.
Market participants have become increasingly sensitive to any new geopolitical developments.
Risk aversion has cast a shadow over digital assets, temporarily restraining their gains.
However, investors still see the GENIUS Act as a long-term bullish catalyst that could mitigate some of the negative impacts of geopolitical tensions.
The Federal Reserve's decision coincides with Bitcoin price movements following a symmetrical triangle pattern.
The Federal Reserve kept interest rates steady within the range of 4.25% to 4.50% during its meeting yesterday, amid markets searching for indicators suggesting a potential reduction later in 2025, which could weaken the performance of the U.S. dollar (USD) and support the prospects for Bitcoin (BTC) in return.
From a technical standpoint, Bitcoin price forecasts remain tilted toward decline, as the BTC/USD pair continues to move within a symmetrical triangle pattern on its two-hour chart between a significant resistance level at $106,658 and a strong support level at $103,431, while the reading of the 50-period Exponential Moving Average (EMA) has settled around $105,807 to reflect trader indecision, and the MACD momentum indicators have turned negative, suggesting a tendency to continue declining unless a decisive breakout occurs to determine the next direction.
Chart for Bitcoin price, source: TradingView Suggested trading settings:
Open a short position: Breaking the support level of $103,430
Target One: $102,180
Target Two: $100,450
Stop loss: Highest level $105,800
These settings indicate a likelihood of continued price decline in the near term unless the price can decisively break through the upper trend line, and it is advised to monitor a confirmed close outside the triangle with increased trading volumes before making a decision.
As macroeconomic volatility and regulatory changes accelerate, Bitcoin traders are cautiously monitoring the market and preparing to face potential price fluctuations.
