In a recent expert commentary, executives from BlackRock, the world’s largest asset manager and a leading issuer of cryptocurrency exchange-traded funds (ETFs), identified a significant trend in the cryptocurrency market, particularly for Bitcoin (BTC).  They foresee a major surge ahead, driven by recent US legislative developments such as the signing of the GENIUS Act. They assert that these developments bolster the role of stablecoins as key players in the future of digital payments. New Regulatory Landscape For Stablecoins Central to BlackRock’s analysis is the recently enacted GENIUS Act, legislation that aims to establish a comprehensive framework for stablecoins as a means of payment.  Stablecoins, digital tokens pegged to traditional currencies such as the US dollar, are gaining significant traction among traditional finance firms seeking to modernize their transactions, and could solidify the dollar’s dominance in global markets.  Related Reading: Bitcoin Demand Drops Among US Investors—Is a Price Correction Coming? Though their current market share is about 7%—equating to approximately $250 billion—the rapid adoption of stablecoins since 2020 indicates a growing acceptance within the financial landscape.   The GENIUS Act delineates stablecoins as payment methods rather than investment products, which includes provisions to prohibit interest payments and restrict issuance to federally regulated banks and select nonbanks.  This regulatory framework is poised to create a tokenized ecosystem centered around the US dollar, facilitating easier access for users in emerging markets while potentially limiting adoption in major economies due to the ban on interest payments.  Additionally, the act specifies the types of assets that stablecoin issuers can hold in reserve, predominantly consisting of repurchase agreements, money market funds, and US Treasury bills with short maturities.  Notably, major stablecoin issuers like Tether (USDT) and Circle (USDC) currently hold over $120 billion in Treasury bills, yet this represents only a small fraction of the total outstanding US Treasury bills. BlackRock Optimistic About Bitcoin’s Potential  BlackRock’s commentary also suggests that while the demand for Treasury bills may increase as the stablecoin market grows, the overall impact on yields could be limited.  This is due to a likely offsetting shift of funds from similar assets rather than generating significant new demand. Furthermore, the US Treasury’s inclination to increase short-term debt issuance to address persistent budget deficits may also dampen any upward pressure on yields. Beyond US borders, other regions are also taking steps to regulate stablecoins. Hong Kong is implementing new regulations aimed at fostering innovation in stablecoins, while Europe is exploring the concept of a digital euro, albeit with limitations to protect traditional banks.  Related Reading: XRP Dormant Coins On The Move: Reason Behind Price Plunge? Should other nations allow interest-bearing stablecoins or pursue central bank digital currencies (CBDCs), the US dollar’s role in trade finance could be at risk, the experts assert, potentially prompting the US to reconsider its stance on interest payments. As digital assets continue to gain mainstream acceptance, the combination of regulatory support and US administration backing suggests a future where Bitcoin and stablecoins play a more integral role in financial systems.  BlackRock remains optimistic about Bitcoin’s potential as a distinct return driver and a key asset in diversified investment portfolios. Featured image from DALL-E, chart from TradingView.com Source: newsbtc.com (Read Full Article)

BNB price is correcting gains from the $860 zone. The price is now facing hurdles near $820 and might dip again toward the $788 support. BNB price is correcting gains and traded below the $820 support zone. The price is now trading below $810 and the 100-hourly simple moving average. There is a key bullish trend line forming with support at $800 on the hourly chart of the BNB/USD pair (data source from Binance). The pair must stay above the $788 level to start another increase in the near term. BNB Price Trims Some Gains After a steady increase, BNB price failed to clear the $860 zone. There was a downside correction below the $850 and $680 levels, like Ethereum and Bitcoin. The price even dipped below $840 and tested $800. There was a clear move below the 23.6% Fib retracement level of the upward move from the $744 swing low to the $861 high. The bulls are now active near the $800 support zone. There is also a key bullish trend line forming with support at $800 on the hourly chart of the BNB/USD pair. The price is now trading below $810 and the 100-hourly simple moving average. On the upside, the price could face resistance near the $810 level. The next resistance sits near the $820 level. A clear move above the $820 zone could send the price higher. In the stated case, BNB price could test $845. A close above the $845 resistance might set the pace for a larger move toward the $860 resistance. Any more gains might call for a test of the $880 level in the near term. More Losses? If BNB fails to clear the $820 resistance, it could start another decline. Initial support on the downside is near the $800 level. The next major support is near the $788 level. The main support sits at $770. If there is a downside break below the $770 support, the price could drop toward the $750 support. Any more losses could initiate a larger decline toward the $735 level. Technical Indicators Hourly MACD – The MACD for BNB/USD is gaining pace in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BNB/USD is currently below the 50 level. Major Support Levels – $800 and $788. Major Resistance Levels – $810 and $820. Source: newsbtc.com (Read Full Article)