5 min readBitcoin is holding firm around the 105 level for a second straight day after the Federal Reserve left interest rates unchanged and raised its inflation forecast. Meanwhile, the conflict in the Middle East enters a seventh straight day.
As expected, the Federal Reserve left interest rates unchanged at 4.25- 4.5%. The Fed lowered its growth forecast for this year to 1.4% but raised its inflation projection to 3%. While the dot plot continues to show a median of two rate cuts this year, seven Fed officials see no rate cuts at all in 2025, up from previously.
Federal Reserve Chair Jerome Powell made it clear that tariffs are expected to increase inflation in the coming months. Following the press conference, U.S. stocks closed mixed, and the U.S. dollar has continued to rise. Bitcoin is unchanged.
Interestingly, Bitcoin has remained unmoved despite rising concerns over the conflict in the Middle East as Trump evaluates the possibility of intervening against Iran. Trump says he has yet to decide whether the US will become directly involved, saying, “I may do it, I may not.”
Genius Act is passed by the US Senate
One reason for Bitcoin’s buoyancy could be the progress in regulatory reform in Washington. The US Senate passed the Genius bill, the crypto industry’s first major legislation, paving the way for stablecoins to enter the mainstream arena across banks, fintech, and retailers.
The bill, which was passed on Tuesday with a vote of 68 to 30 in the US Senate, aims to regulate stablecoin issuers in the US and help to establish a legal framework, enhancing legitimacy and facilitating wider adoption. Industry giants like Amazon and Walmart are reportedly moving towards stablecoin-style offerings as payment networks brace for disruption. It is the first major crypto bill to hit this milestone.
U.S. Treasury Secretary Scott Bessent believes the stablecoin market could reach $2 trillion by 2028 and $3.7 trillion by 2030.
Chainlink to lead stablecoin surge
According to Chain Link CEO, Nazarov, the Genesis Act could kick off a wave of new stablecoins, and LINK is well-positioned to benefit from this trend.
Nazarov recently said on his official X profile that LINK’s advanced proof of reserves and cross-chain connectivity mean it has the necessary infrastructure for efficient stablecoin development. Chain Link is the only platform that provides proof of reserves and cross-chain connectivity in one system. As a result, its native LINK cryptocurrency could see its value rise.
LINK is rising for a second straight session and is up 1.5% so far this week, outperforming Bitcoin and other major peers. However, the longer term trend is still bearish.
LINK technical analysis
LINK trades below a falling trendline dating back to December last year; however, sellers have failed to break support below 12.7.
Sellers would need to take out this support to extend losses towards 10.25, the April low.
Should buyers rise above 14.5, this could pave the way for a breakout to 15.5, the June high, before bringing the 200 SMA at 17.75 into focus.
Trading involves risk.
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