Recent events in the cryptocurrency markets and US politics create diverse signals for investors. Ethereum continues to see deposits on Binance, while Bitcoin shows positive trends among short-term holders.
Signals in the Crypto Markets
Ethereum deposits have continued for five consecutive days on Binance. Meanwhile, the Short-Term Holder Net Position Realized Cap for Bitcoin has surged from negative over $49 billion to more than $5 billion. This trend indicates aggressive accumulation by retail traders looking to benefit from the current rally.
Political Situation in the USA
US President Donald Trump announced that Senate Republicans are finalizing a bill he described as "ONE, BIG, BEAUTIFUL BILL." This bill proposes sweeping tax cuts, including the elimination of taxes on tips, overtime, and seniors' Social Security income. If passed, it could increase disposable income for households and boost short-term consumer spending. However, concerns arise that unfunded tax cuts may worsen the federal budget deficit.
Current Situation with Bitcoin
Bitcoin is observed to be quietly testing resistance levels amid new all-time highs in US equities. Despite this, Bitcoin's upside volatility remains muted. It is anticipated that a weakening US dollar could drive Bitcoin higher, consistent with previous cycles where the cryptocurrency surged during significant dollar devaluation.
Current events in the cryptocurrency markets and US politics create interest and concerns among investors. The growing activity of short-term Bitcoin holders, along with the potential impact of tax changes, introduces uncertainty regarding future market trends.
