Crypto Compass by BitcoinWalletSG #122

🏛️ Senate Advances Landmark Stablecoin Regulation Bill

The U.S. Senate passed the GENIUS Act, aiming to regulate stablecoin issuers with reserve requirements and anti-money laundering compliance. Despite bipartisan support, some opposed due to Trump's involvement in crypto ventures. The bill now moves toward final passage, signaling increasing political focus on crypto regulation.

📉 Moody’s Downgrades U.S. Credit Rating

Moody’s downgraded the U.S. sovereign credit rating from Aaa to Aa1, citing concerns over the nation's escalating $36 trillion debt and persistent fiscal deficits. This marks the third major credit agency to lower the U.S. rating since 2011. The downgrade could lead to higher borrowing costs and increased scrutiny of U.S. fiscal policies.

📊 Bitcoin Holds Above $100K as Altcoins Slide

Bitcoin remained steady above $100,000, buoyed by cooling U.S. inflation and anticipation of potential Federal Reserve rate cuts. Meanwhile, altcoins like Ether and Solana experienced declines, reflecting a cautious market sentiment. Analysts suggest that despite short-term volatility, the crypto market may rally into summer as macroeconomic conditions improve.

📉 Institutions Reduce Ethereum Holdings Amid Network Challenges

Major investors like Galaxy Digital and Paradigm have decreased their Ether holdings, citing concerns over Ethereum's declining base-layer activity and rising inflation. Despite this, some view the downturn as a buying opportunity, indicating ongoing interest in Ethereum's long-term potential.