Bitcoin is making efforts to grow, but each new rise is achieved with increasing difficulty. Nevertheless, this does not negate its longer-term bullish prospects.

In the meantime, Bitwise has released a report showing that stablecoins are rapidly becoming one of the world's largest holders of US government debt. This new trend reflects the growing integration of digital assets into the traditional financial system and demonstrates the significant liquidity concentrated in stablecoins. The increasing share of stablecoins in US debt obligations raises several questions. First, it indicates diversification of the government bond market and the emergence of new players. Second, it can have an impact on interest rates and the overall stability of the financial system.

Stablecoins are typically backed by reserves that include fiat currencies and short-term government bonds. As stablecoins' market capitalization grows, their share of the government debt market rises accordingly. This creates a unique interdependence between digital assets and macroeconomic indicators.

Regulators will closely monitor the development of this trend in the future. Ensuring transparency and resilience of stablecoins is crucial to minimize systemic risks. The further expansion of stablecoins' role as holders of US government debt could become a key factor in shaping the future financial architecture.

It is worth noting that in January of this year, Trump signed an order stating that the United States would support the growth of the stablecoin market worldwide. The United States is now openly acknowledging that the growth of the stablecoin market drives demand for American bonds. This, to some extent, may help address the problem of rising government debt.

Currently, the total market capitalization of stablecoins has exceeded $280 billion. Clearly, this phenomenal growth—fueled by a demand for stability in the volatile world of cryptocurrencies—has established stablecoins as a key element of the modern financial ecosystem. However, the rapid expansion of stablecoins also brings certain risks. The concentration of capital among a few large issuers, insufficient reserve transparency, and potential vulnerability to regulatory actions all require close attention from market participants and regulators.

Trading recommendations:

As for the technical picture for Bitcoin, buyers are currently aiming to regain the $112,100 level, which would open a direct path to $113,700, followed by $115,600. The most distant target is the high near $117,500. Breaking through this mark would signal a strengthening of the bull market. In the event of a decline, buyers are expected at $110,600. A move below this support could quickly send BTC to the $108,600 area. The furthest downside target would be $106,100.

Regarding the technical picture for Ethereum, a clear consolidation above $4,547 opens a direct path to $4,675. The most distant target is the high near $4,807, and overcoming this level would signal further growth and renewed buyer interest. If Ether declines, buyers are expected at $4,424. Dropping below this area could send ETH quickly to $4,307, with the most distant target at $4,215.

What we see on the chart:

- Red lines indicate support and resistance levels, where either a slowdown or a spike in prices is expected in the near term;

- Green lines represent the 50-day moving average;

- Blue lines represent the 100-day moving average;

- Light green lines indicate the 200-day moving average.

The crossing or testing of moving averages by the price generally either halts the market or gives it new momentum.