Crypto Market Soars Amid Stock Market Slump: Bitcoin Hits New Heights

Hold onto your hats, crypto fans! Bitcoin and altcoins are absolutely crushing it today, soaring to new heights even as the US stock market takes a nosedive.

Bitcoin (BTC) just smashed through the roof, hitting a mind-blowing record high of $111,860. And get this - the total market cap of all cryptocurrencies has rocketed to a staggering $3.5 trillion. Meanwhile, the Dow Jones opened lower by about 100 points, adding to the 816 point drop from yesterday. Talk about a wild ride!

So, what's fueling this crypto frenzy? Well, buckle up because the U.S. Senate just passed the groundbreaking GENIUS Act, the first-ever crypto regulation focused on stablecoins. This game-changer requires stablecoin issuers to keep a full 100 percent reserve backed by top-notch assets like U.S. Treasuries and the dollar. Plus, they've gotta spill the beans with monthly disclosures about what's in those reserves.

But wait, there's more! The GENIUS Act also brings in federal and state oversight. Big players with assets over 10 billion dollars will be under the federal microscope, while the states will keep an eye on the smaller fish with less than 10 billion in assets.

This is a huge deal for the crypto world, especially after the Terra meltdown in 2022 and other epic failures like FTX. The GENIUS Act is like a knight in shining armor, safeguarding the industry and finally bringing some much-needed legal clarity.

Bitcoin as a Safe Haven After US Credit Rating Downgrade

But that's not all, folks! Bitcoin and altcoins are also riding high because investors are flocking to BTC as a safe haven after Moody's dropped the hammer on the US credit rating.

The safe-haven hype has sent investors piling into spot Bitcoin ETFs like there's no tomorrow, pouring in over $4.2 billion this month alone. That brings the total to a whopping $43 billion. Cha-ching!

In their statement, Moody's called out the skyrocketing US debt and interest payments, along with some not-so-hot policies coming out of Washington.

Case in point: the House of Representatives just passed what they're calling the "big, beautiful bill" that could add a cool $3.8 trillion to the national debt, according to some estimates. This beast of a bill extends the 2017 tax cuts, throws in new ones like deductions on tips and overtime pay, beefs up the child tax credit, and even tosses in a sweet $4,000 senior tax relief.

With all this debt and deficit drama, investors are bailing on U.S. assets, especially stocks. The U.S. Dollar Index has tanked to 99.6, while bond yields are going through the roof. We're talking a 30-year yield at 5.1 percent and a 10-year at 4.6 percent. Yikes!

Bitcoin Price Has Strong Technicals

And if all that wasn't enough to get you pumped, Bitcoin's breakout is also backed by some seriously solid technical indicators. Check this out: on the daily chart, it's formed a classic cup and handle pattern while narrowly dodging a death cross. A death cross happens when the 50-day and 200-day moving averages cross while trending down, and we almost saw that nightmare in August last year, but BTC pulled off a last-minute escape.

The cup pattern is about 30 percent deep, and if we measure that distance from the breakout level, we're looking at potential gains all the way up to $141,000. Get ready to ride the rocket, crypto warriors!