As America shapes its crypto regulatory framework, Bitcoin and altcoins respond to global market fluctuations

Market movements demonstrate how sensitive the crypto ecosystem is to macroeconomic factors. Especially, the new regulatory initiatives in the United States have begun to trigger a structural transformation in the global digital asset market. While Bitcoin is trading at $77.48K, looking at broader market indicators, it has decreased by -1.83% in the last 24 hours; however, some fundamental factors are supporting long-term growth.

Japan Central Bank Rate Hike and Yen Weaknesses’ Global Implications

The rate hike by the Bank of Japan produced unexpected results. In theory, rising interest rates should strengthen the new currency. However, the yen depreciated following this decision. The reason is concerns that Prime Minister Sanae Takaichi’s government spending plans will come under financial pressure. 10-year Japanese government bonds exceeded 2% for the first time in 20 years.

This development indicates that the carry trade mechanism is still effective in the market. Due to investors shifting their funds to higher-yielding assets in a low-interest environment, demand for crypto markets increased. The trading of Bitcoin in the $77.48K-$79.45K range and Ethereum around $2.31K, along with the alignment of altcoins, reflects this redistribution of resources.

US New Crypto Laws Encourage Institutional Investors

The adaptation of the US regulatory approach to the crypto sector is gaining speed by 2026. Named the GENIUS Act, this initiative aims to strengthen the legal framework for the digital asset market. According to Ira Auerbach, president of Offchain Labs, stablecoin issuers will cease offshore operations and transition to domestic operations.

This structural change is designed to increase institutional participation. Some pension funds have started testing adding crypto positions between 0.5% and 1% to target date funds. These long-term, passive investors will help create a stable demand base that buffers volatility. Digital assets are now seen not as a “volatility factor” but as a risk management tool within certain ratios.

Market Dynamics and Technological Trends

Investments in artificial intelligence infrastructure have given new momentum to the crypto mining sector. Some mining companies are diversifying into AI data center operations, with deals reaching billion-dollar scales. However, analysis firms like QCP Capital warn: although capital continues to flow rapidly, AI companies have yet to generate tangible revenue. Valuation risks could lead to sharp declines if revenue does not materialize.

Ethereum is trading at $2.31K, down -4.30% in 24 hours. Major altcoins like BNB and Solana showed more limited movement, while the CoinDesk 20 index closed with a 1.3% increase in the overall market. This divergence indicates that market participants are evaluating risks differently.

Technical Analysis: Fibonacci Levels and Support-Resistance Dynamics

Bitcoin/Dollar pair is stuck between the $84,200 support level and the $90,500 weekly resistance level. Technical indicators show that although trading below the 0.382 Fibonacci level, RSI divergence signals a clear bullish momentum. While the price is in consolidation, indicator strength continues to build.

A steady weekly close above $90,500 would confirm this divergence and could trigger a continuation toward the 0.236 Fibonacci target of approximately $100,400. In the current volatile environment, technical levels remain important reference points for investors.

Crypto Stocks and Market Flows

In the last 24 hours, there has been a -161.3 million dollar outflow from spot Bitcoin ETFs, while cumulative inflows have exceeded $57.55 billion. For spot Ethereum ETFs, a -96.6 million dollar outflow was recorded, but total assets remained above $12.54 billion. Coinbase Global stock closed Thursday at $239.20 with a 2.04% decrease, but showed a recovery with a 3.24% increase in pre-market trading.

Mining company stocks showed mixed signals. Core Scientific closed at $14.56 with a 7.3% increase, while Galaxy Digital declined by 1.32%. This divergence indicates that investors are choosing between AI-focused strategies and traditional crypto mining.

Regulatory Developments and Future Expectations

Coinbase has initiated legal proceedings in Connecticut, Michigan, and Illinois against the prohibition of prediction markets at the state level. This move raises questions about how the US’s foundational principles of free trade will be applied to the crypto and digital asset sectors. Chief Legal Officer Paul Grewal emphasized the need to balance regulatory restrictions with innovation.

Additionally, significant developments are observed in DAO governance votes. Lido DAO is voting on transitioning from a pure staking protocol to a diversified DeFi product suite. Arbitrum DAO has voted to activate the ArbOS 51 upgrade, which introduces a 32M transaction gas limit and dynamic gas targets to enhance network scalability. Such protocol upgrades indicate ongoing maturation of the ecosystem.

The global macroeconomic environment remains uncertain. While US Treasury yields are at 4.145%, the Federal Reserve’s future easing expectations are shaping market outlooks. The resilience of Bitcoin and altcoins during this turbulent period reflects the interplay of structural demand factors and broader market risk dynamics.