The US Senate just passed a big law for stablecoins, called the GENIUS Act. This is a win for the crypto world and could be huge for Bitcoin too.
A $3.7 Trillion Stablecoin Market?
Treasury Secretary Scott Bessent thinks stablecoins could become a massive $3.7 trillion market by the end of the decade, thanks in part to the GENIUS Act. He believes this growth will boost demand for US Treasuries, since stablecoins are often backed by them. But this isn’t just about traditional finance; a huge stablecoin market would also massively impact crypto, especially Bitcoin.
Could Bitcoin Go on a Super Rally?
Crypto journalist Rafaela Romano thinks so. She’s been looking at the relationship between stablecoin growth and Bitcoin’s price. She uses something called the Stablecoin Ratio Channel (SRC) to predict market movements.
Understanding the SRC
The SRC is a long-term indicator that smooths out short-term price fluctuations. It basically compares the amount of Bitcoin to the amount of stablecoins. When the SRC falls below a certain level (the green line in her chart), it historically suggests Bitcoin is undervalued and ready for a big price jump.
The Prediction
A 15x increase in the stablecoin market cap would likely push the SRC below that green line, according to Romano’s analysis. This, she argues, could trigger a massive Bitcoin price rally – a “super multiple.”
Bitcoin’s Current Price
Right now, Bitcoin is trading around $103,550. It’s down slightly in the last 24 hours. But with the potential for a huge stablecoin boom, this could just be the calm before the storm.