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📈🚀 Bitcoin Breaks $97K! Stablecoin Surge & US Gov't Buys?

The crypto market barrels towards the weekend with a head of steam. Bitcoin brushed past $97,000, a level many thought unlikely just weeks ago, especially with interest rates still biting. It feels less like cautious optimism and more like genuine strength, a sentiment echoed across much of the digital asset landscape. Today isn't just about price action, though; it's about foundations potentially shifting in Washington D.C., and big players finally deciding they can't sit on the sidelines any longer.

We're seeing a powerful confluence of factors: surprising Bitcoin resilience, serious progress on US stablecoin legislation, and traditional finance giants like Morgan Stanley and Schwab making concrete moves into crypto trading. Add a dash of speculation about government Bitcoin buying and signs of an improving regulatory climate, and you have a market buzzing with potential. It’s a lot to unpack as Friday unfolds. Before we delve into the key factors driving today’s market, let’s take a quick look at where things stand.

🔍 Quick Overview

• Stablecoin Sprint: Washington pushes stablecoin bills toward the finish line with surprising speed. Think bipartisan agreement, but hopefully less confusing than assembling flat-pack furniture.

• Bitcoin's Muscle: Holding strong near $97k despite high rates, Bitcoin's acting less like a tech stock and more like digital gold – tough, resilient, and maybe a bit stubborn.

• Titans Turn Crypto: Wall Street giants like Morgan Stanley and Schwab are finally rolling out direct crypto trading. Better late than never, they're joining the digital gold rush.

• DC's Change of Heart: The regulatory mood in Washington feels less like a headmaster's scowl and more like a cautious nod. Bipartisan bills advance, the SEC backs off a bit – progress, perhaps?

• Government Gold Trick?] Whispers grow louder: Could the US revalue its gold hoard and use the paper profit to snag $100B in Bitcoin? Sounds like finding treasure in the national attic.

Trending News

🏛️💨 Senate Fast-Tracks Stablecoin Bill: Is US Crypto Regulation Finally Here?

The US Senate is advancing the GENIUS Act to regulate stablecoins, aiming for a vote soon. Led by key Republican senators and mirroring House efforts, the bill seeks clear rules for issuers. Bipartisan support suggests momentum for the first major US crypto law this year. Passage could unlock significant stablecoin growth and provide regulatory clarity for the industry.

📈🚀 Bitcoin Blasts Past $97K, MicroStrategy Stock Soars Ahead of Earnings

Bitcoin surged above $97,000, driving MicroStrategy's stock (MSTR) to new year-to-date highs above $400. The rally comes as CEO Michael Saylor hints at a significant announcement during the upcoming earnings call. Eyes are on whether MSTR will reveal plans for further Bitcoin purchases after completing a $21B share sale program. Continued institutional accumulation and positive price action could further bolster market confidence.

✅🤝 SEC Ends PayPal Stablecoin Probe: PYUSD Gets Green Light

The SEC has closed its investigation into PayPal's PYUSD stablecoin without enforcement action, removing a key regulatory hurdle. PayPal launched the dollar-backed stablecoin last August, attracting SEC scrutiny. This decision allows PayPal to advance its blockchain payment plans amid growing stablecoin competition. The move could signal a less adversarial SEC stance and encourage further stablecoin innovation.

🇯🇵💰 Japan's Metaplanet Doubles Down on Bitcoin, Raises $24M+ & Expands to US

Japanese firm Metaplanet issued ~$24.7M in bonds to buy more Bitcoin, continuing its aggressive accumulation strategy. Now holding 5,000 BTC, the company aims for 10,000 BTC by year-end and established a US subsidiary in Miami to streamline purchases. Metaplanet plans to raise up to $250M via its new US arm. This highlights the growing trend of international companies adopting Bitcoin treasury strategies.

Beyond the Noise

Perhaps the most significant driver right now is the momentum behind US stablecoin legislation. Congress seems serious this time. The Senate is prepping a vote on the "Genius Act," possibly before Memorial Day (May 23rd), thanks to efforts by Majority Leader Thune to fast-track it. Meanwhile, the House has its own "Stable Act" waiting for a floor vote after clearing committee. As Ron W. Hammond from the Blockchain Association put it, "We have the stable act in the house... We have the Genius Act... waiting for a vote in the Senate." While DC timelines can be famously elastic – Hammond notes macro issues could push things to June – the bipartisan support is strong, with the Senate Banking Committee approving its version 18-6.

Why does this matter so much? Because clear rules for dollar-backed stablecoins are seen as a gateway. Senator Bill Haggerty, author of the Genius Act, wants to "**keep digital asset innovation in America**" and ensure consumer protection. Senator Tim Scott even offered a handy analogy for the rest of us: stablecoins are like "**traveler's checks on blockchain**," simplifying access and reducing costs. Passing these bills, likely combined into a final "Stable Genius Act," is viewed as highly bullish, potentially unlocking a $1 trillion stablecoin market and paving the way for broader crypto market structure rules. Banks like Bank of America are reportedly ready to jump in once the ink is dry.

This legislative push feels like part of a broader, positive shift in the US regulatory environment. The recent bipartisan vote to overturn the SEC's controversial accounting bulletin (SAB 121, related to the IRS Broker Rule CRA) signals a change in the air. We're even hearing reports the SEC is dropping investigations, like the probe into PayPal's PYUSD stablecoin, which PayPal confirmed was closed without enforcement action. This is a far cry from the more adversarial stance seen previously. Add President Trump reportedly wanting a crypto bill signed before the August recess, and the narrative shifts from regulatory headwinds to potential tailwinds. Some are even suggesting crypto ATMs in federal buildings – a sign, perhaps, that crypto is moving from the fringes towards the mainstream.

Amidst this backdrop, Bitcoin's price action is remarkable. Touching $97,400 marks its highest point since February. As macro expert Dan Tapiro noted, Bitcoin hitting $95k+ with current high interest rates is "**unbelievable... super duper strong**." He contrasts this with the 2021 peak near $60k when rates were zero. Tapiro suggests Bitcoin's "fair value" could be $180,000 later this year if rates ease. Looking at the Top 5 cryptos today, Bitcoin leads the charge, pulling others along. Analysts like Alyssa Painter observe Bitcoin decoupling from equities, behaving more like "**digital gold**" – a hedge against uncertainty. Technical indicators support the bullish case: Bitcoin broke key moving averages, the weekly RSI shows a breakout, and the MACD looks poised to turn positive. Near-term targets cited include $106,000, with potential for $125,000-$130,000 in this quarter.

This strength and regulatory progress are clearly not lost on traditional finance. Morgan Stanley ($1.7 Trillion AUM) admitted plans to offer **Bitcoin and crypto trading via E*Trade**, aiming to challenge crypto leaders by 2025. Charles Schwab ($7.13 Trillion AUM) intends to launch spot crypto trading within 12 months. As one observer put it, "We are literally seeing almost every single big player doing this now..." They understand they must "**adapt or get left behind**." The availability of Bitcoin ETFs, often through these very platforms, provides an easier entry point for many investors, further fueling adoption.

Inspired by pioneers like MicroStrategy's Michael Saylor, who now holds roughly 2.5% of all Bitcoin and plans to "just keep buying," other entities are adopting similar corporate Bitcoin treasury strategies. Adam Back's Blockstream aims to capture 1% of the supply by 2033, and Jack Mallers is reportedly replicating Saylor's approach. Saylor himself sees it as a "ratchet" with "**massive leverage**," predicting exponential price increases as accumulation continues, potentially reaching $1 million per coin if he hits 5% ownership. This signals deep conviction in Bitcoin as a primary reserve asset.

While Bitcoin dominates headlines, the Ethereum ecosystem is also showing robust growth, particularly in its Layer 2 (L2) scaling solutions. Unique L2 addresses just hit an all-time high of 13.6 million – a stunning 74% increase in just one week – with weekly transactions exceeding 832,000. This shows Ethereum's network effect remains strong. Furthermore, new privacy-focused L2s like Aztec, eight years in the making, are launching testnets. These aim to meet growing institutional demand for confidentiality when transacting on public blockchains, a key hurdle for deeper enterprise adoption.

Finally, adding a layer of intrigue is the theory, reportedly from Coinbase Asset Management's President Sebastian Bay, about potential US government Bitcoin accumulation. The idea involves revaluing US gold reserves from the statutory ~$42/oz to market prices, creating a ~$900 billion paper gain. A portion, perhaps $100 billion, could then be used to buy Bitcoin in a "budget-neutral" way, possibly via a sovereign wealth fund. While speculative, Bay suggests the government has signaled intentions for "asset monetization" and adding to its Bitcoin holdings. If the US were to make such a move, it could trigger an international "arms race" for Bitcoin. It’s a wild idea, but one that captures the increasingly bold thinking around Bitcoin's future role.

This Caught My Eye:

Here’s a breakdown of the chart:

• Short-Term Holders (STHs) are back in profit, with Bitcoin’s price now above all key realized cost basis levels—most notably the <1m ($88.9k) and <3m ($89.1k) bands—reducing panic sell pressure and reinforcing bullish structure.

• Support holds at $93K, while $95K–$100K is the key resistance zone. Strong ETF inflows, accumulation off exchanges (~20K BTC), and unwavering Long-Term Holder (LTH) conviction set the stage for a potential breakout—if $93K holds, momentum favors a retest of $100K and possible price discovery beyond.
  

Looking Ahead

So, as we close out the week, the crypto market feels decidedly upbeat. The potential for clear US stablecoin rules before summer is a powerful narrative, offering a glimpse of regulatory clarity the industry has long sought. This, combined with a seemingly less hostile SEC and proactive political interest, removes significant perceived risks. Bitcoin's ability to shrug off macroeconomic pressures and push towards $100k demonstrates underlying strength and perhaps a growing recognition of its unique properties.

The steady march of institutional adoption, with giants like Schwab and Morgan Stanley building on-ramps, adds another layer of validation. These aren't tentative steps; they're strategic moves reflecting a belief that crypto is here to stay. Looking back at the week, the dominant theme is one of building momentum – in price, in regulation, and in adoption.

Heading into the weekend and looking towards next week, the key things to watch remain the progress of the stablecoin bills in Congress (especially with that Memorial Day target looming) and whether Bitcoin can consolidate its recent gains or push towards that next resistance around $106,000. The question now isn't if crypto integrates further into the financial system, but how quickly – and today’s developments suggest the pace might be picking up. Keep building, keep learning.

Until tomorrow,
- Dr.P