Washington Gradually Embracing Crypto

In recent developments, Bitcoin has shown resilience, maintaining its value above $66,000 since mid-May despite testing the $65,000 support level on June 14. Regulatory sentiment around cryptocurrency in the U.S. has improved, highlighted by the passage of a Congressional Review Act to explore SEC rules on crypto assets, although it was vetoed by President Biden. This veto underscores the growing influence of crypto advocates in U.S. politics.
The Federal Reserve faces pressure to lower interest rates to prevent an economic recession, as inflation remains above the target, and unemployment shows slight increases. Market dynamics are shifting, with a drop in the U.S. 2-year Treasury yield and a record high for the S&P 500, indicating a move towards equities and scarce assets over cash.
In the Bitcoin derivatives market, the 2-month futures premium stayed above 10% on June 14, suggesting a bullish sentiment despite an 8.5% price drop. This resilience indicates limited downside risk for Bitcoin, supported by favorable regulatory and economic conditions.