Bitcoin Gains as Genius Act Progresses
While XRP faced selling pressure, Bitcoin (BTC) experienced a rise on May 20 as investors reacted positively to the potential passing of the Genius Act in Congress. The Senate approved the act on May 19, with support from 16 Democrats. Reportedly, it could change their voting direction in favor of the bill. Successfully passing this legislation could be crucial for advancing further crypto-related laws.
John E. Deaton, a lawyer associated with Crypto Amicus Curiae, recently stated,
“If Congress fails to pass the Genius Act, we are unlikely to see any new legislation regarding market structure. As it stands, significant reforms may not be possible until 2029, depending on the outcomes of the presidential election.”
Importantly, the Genius Act’s passage might create a pathway for the Bitcoin Act. Senator Cynthia Ramis recently suggested reintroducing that act, which would enable the U.S. to acquire 1 million BTC over five years, subject to a 20-year statutory holding period. If approved, BTC could reach new heights due to a tighter supply.
Increased Demand for BTC Spot ETFs
In the meantime, the U.S. BTC spot ETF market added to the profit session with net inflows totaling $667.4 million on May 19. The market could extend this influx streak for a fifth consecutive session on May 20, reflecting favorable investor sentiment.
According to Farside Investors, notable inflow trends for May 20 include:
- The Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $23.3 million.
- ARK 21Shares Bitcoin ETF (ARKB) saw a net inflow of $6.4 million.
- The Grayscale Bitcoin Mini Trust (BTC) accumulated a net inflow of $6.2 million.
- The Bitwise Bitcoin ETF (BITB) experienced a net inflow of $5.8 million.
Disregarding the pending data from the ISHARES BITCOIN TRUST (IBIT) by BlackRock, the total inflow in the U.S. BTC spot ETF market reached $41.7 million.
Market intelligence platform Santiment shared insights into recent inflow trends, noting,
“We’re witnessing a significant inflow into Bitcoin ETFs, a trend that started in mid-April. Over the past five weeks, there’s been a net inflow of $66.3 billion across BTC ETFs, which is historically a strong indicator of future price movements.”
BTC Price Outlook: Monitor Capitol Hill and ETF Trends
On May 20, BTC gained 1.21%, recovering from a 0.85% loss on Monday, ultimately hitting records at $106,856.
The short-term trajectory for BTC largely depends on developments in Capitol Hill, global trade conditions, macroeconomic indicators, and ETF inflows.
Possible scenarios include:
- Bearish scenario: New trade tensions, legislative gridlocks, recession fears, and possible ETF leaks could push BTC below $100,000.
- Bullish scenario: Eased trade tensions, favorable U.S. economic data, progress on the Genius Act, and continued ETF inflows could drive BTC to a record high of $109,312.
