While Bitcoin struggles to gain traction, showing weak attempts at growth in early trading, US Treasury Secretary Scott Bessent once again stated that the stablecoin market could reach $3.7 trillion by the end of the decade, which would support demand for US government debt.

This optimistic outlook undoubtedly strengthens the case for long-term stability of the US economy, though it does not have any immediate impact on the current volatility of the crypto market. Against Bitcoin's stagnation, investors are closely monitoring developments around cryptocurrency regulation. According to many experts, a clear regulatory framework remains a cornerstone of the crypto market — including Bitcoin — as it attracts new institutional investors and fosters further market growth.

Bessent's remarks, while forward-looking, highlight the importance of stability and predictability, which are key factors for institutions.

In the short term, however, Bitcoin remains vulnerable to speculative factors and macroeconomic conditions. Despite the upbeat projections for stablecoins, Bitcoin needs to overcome several technical resistance levels and gain support from external factors — such as easing inflation and a more accommodative monetary policy — to resume confident growth. Until then, while Bitcoin "struggles," investors are advised to stay cautious and carefully weigh risks, taking into account both long-term prospects and current uncertainty.

On the legislative front, with the successful passage of the GENIUS Act, demand for US Treasuries from the private sector is expected to grow steadily, helping the government reduce borrowing costs, contain the expansion of national debt, and broaden global access to dollar-denominated digital asset ecosystems.

Previously, US "Crypto Czar" David Sacks argued that passing a stablecoin law would significantly boost demand for US Treasuries from stablecoin issuers, which indeed materialized. Now, with expectations for the stablecoin market's growth increasing, these statements carry even greater weight. Still, the direct link between stablecoin expansion and Treasury demand is not the only decisive factor for the US economy. Much depends on broader macroeconomic conditions, geopolitical risks, and, of course, Federal Reserve policy.

Meanwhile, while debates over stablecoins continue, Tether has once again minted another $1 billion USDT today.

Trading recommendations

Bitcoin

Buyers are now aiming for a return to $114,100, which would pave the way toward $116,000 and then $117,500. The more distant target remains the $119,300 area, with a breakout signaling a stronger bullish market. On the downside, buyers are expected around $113,200. A return below this level could quickly drag BTC toward $110,600, with the final target at $108,500.

Ethereum

A firm consolidation above $4,237 would open the way to $4,376. The ultimate target stands at $4,545, with a breakout indicating stronger bullish sentiment and higher buyer interest. On the downside, buyers are expected at $4,077. A return below this level could push ETH toward $3,941, with the final target at $3,827.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.