The stablecoin market is booming, reaching a new two-year high in 2025. Last week, its capitalization exceeded $263 billion. This surge coincides with significant events like Circle’s IPO and the upcoming Senate hearing for the GENIUS Act.
USDT currently dominates the stablecoin market with 62% of the share, while USDC holds 24%. Historically, Bitcoin’s market capitalization has increased following peaks in the stablecoin market. This suggests a potential for further growth in the Bitcoin market.
The GENIUS Act aims to set clear rules for stablecoin issuers. It is expected to be discussed in a Senate hearing this week, drawing increased attention from market participants. Many believe that the GENIUS Act could protect consumers and create industry standards, potentially making stablecoins a mainstream payment method. The Act would require issuers to maintain reserves and regulate this digital asset class.
Stablecoins are often seen as an entry point to the broader cryptocurrency market. Their market capitalization indicates the level of liquidity within the crypto ecosystem. According to U.S. Vice President JD Vance, the GENIUS Act should be passed without amendments that are not directly related to stablecoins.
However, America’s credit unions are voicing concerns over proposed amendments to the GENIUS Act. They oppose Senator Roger Marshall’s initiative to include the “Big Box Bailout,” or Marshall’s Credit Card Competition Act ‘language,’ to the bill. The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act is considered a framework for crypto innovation and regulation in the United States. Changes to the legislation could harm the credit card payment system and make credit more expensive for consumers.
Data from TradingView indicates that the stablecoin market capitalization reached $263.71 billion last week, marking the highest level in 2025 and nearly a two-year peak. This increase is seen as a potential sign of an upcoming Bitcoin price rally. Historically, Bitcoin’s price has increased in the weeks following peaks in stablecoin market capitalization. The recent peak in stablecoin market capitalization is therefore considered an important factor for Bitcoin’s potential bull run in 2025.
Bitcoin is currently trading above $108,500, nearing its all-time high of $111,980. After dropping to $100,372 on June 5, Bitcoin has been recovering. Analysis of the BTC/USDT price chart suggests further gains are possible. The Relative Strength Index (RSI) is at 60 and trending upwards, while the Moving Average Convergence Divergence (MACD) indicates weakening negative momentum.
Bitcoin could potentially rally by almost 4% and retest its all-time high. A daily close above this level might lead to further price discovery.
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