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Crypto Week: U.S. Rating Downgrade, Senate Vote for Stablecoins, Vance to Bitcoin 2025

Bitcoin (BTC) is up 2.3% to $106,513 this week, retreating slightly from a peak of $107,478. With prices nearing the all-time high of $109,974 and showing no significant pullbacks, market momentum remains strong, suggesting a potential breakthrough above the $108,000–110,000 resistance. Despite a slowdown in inflows to spot Bitcoin ETFs—$786 million last week compared to $1.2 billion and $1.88 billion in the previous two weeks—continued buying at high price levels indicates investor confidence.

The brief dip to $102,037 on Monday following Moody’s U.S. sovereign credit rating downgrade to AA1 was swiftly reversed, with buyers stepping in aggressively. Bullish sentiment was further boosted by the U.S. Senate’s unexpected approval of the GENIUS Act, a stablecoin regulatory framework that opens the door for broader institutional adoption. Bitcoin quickly recovered its losses and surged by another 2.7% to $107,081.

Options markets reflect growing optimism, with many traders betting on BTC reaching $120,000 by June 27. JPMorgan has responded to increasing client demand by enabling Bitcoin purchases, despite CEO Jamie Dimon’s personal skepticism. The bank’s shift aligns with a broader trend among financial institutions, driven by supportive regulatory signals from the new U.S. administration. Vice-President JD Vance, a noted crypto supporter, plans to attend the Bitcoin 2025 conference in Las Vegas on May 28, potentially providing further bullish momentum.

Technically, BTC’s breakout above the $98,000–100,000 range and its successful retest have paved the way for a push toward the next major resistance zone at $108,000–110,000. A sustained move above this level could trigger a rally toward $117,000–127,000, where markets might temporarily pause to consolidate.