23rd May

You can read last week's “This week in crypto” here.

Bitcoin (BTC) reached a new all-time high of $111,970 on Wednesday, driven by positive market sentiment and progress in crypto-related legislation. The cryptocurrency has risen by over 8% in the past week and 19% since the start of the year. Spot Bitcoin ETFs, including the iShares Bitcoin Trust, also broke above key resistance levels. Ethereum, by contrast, hovered around $2,645, remaining more than 20% down year-to-date.

Analysts attribute the rally to several drivers, including the US Senate advancing a stablecoin regulation bill and JPMorgan Chase CEO Jamie Dimon’s announcement that the bank will now allow clients to purchase Bitcoin. Corporate demand has also played a role—MicroStrategy’s recent $765 million Bitcoin buy has pushed its total holdings to over $63 billion. Technical indicators show Bitcoin is following a rising wedge pattern, which may signal a potential reversal due to declining trading volume and overbought conditions. However, the emergence of a “golden cross” pattern—where the 50-day moving average crosses above the 200-day moving average—suggests continued upward momentum. Bullish projections now place the next key level at $120,000. In the near term, support is expected around $107,000, with psychological support at $100,000 and more robust levels near $92,000, based on historical trading ranges and moving averages.

The latest price movement reflects Bitcoin’s growing detachment from traditional risk assets, backed by a wave of institutional interest and clearer regulatory direction. US-listed ETFs, particularly BlackRock’s IBIT, have seen significant inflows, reinforcing Bitcoin’s role as one of the world’s most liquid and valuable financial assets, with a total market cap now standing at $2.17 trillion. Easing US–China trade tensions and renewed bipartisan support for stablecoin legislation have further strengthened the crypto market outlook.

In a notable shift, JPMorgan Chase CEO Jamie Dimon has confirmed that the bank will now allow clients to purchase Bitcoin, walking back his previously critical stance on the asset. While JPMorgan will not custody Bitcoin itself, it will include Bitcoin holdings in client statements. This move comes amid increased competition, particularly from Morgan Stanley, which began supporting client Bitcoin purchases in August 2024. It also reflects a broader regulatory pivot under the Trump administration, which has adopted a more crypto-friendly approach compared to the SEC’s earlier enforcement under Gary Gensler.

Dimon made the announcement during the bank’s annual investor day, and it has been interpreted by many as a major signal of Bitcoin’s legitimacy within traditional finance. The decision will likely draw further institutional investors into the market and marks another milestone in mainstreaming digital assets. The announcement also coincides with speculation around JPMorgan’s leadership transition, as Dimon confirmed he plans to eventually step down as CEO, remaining on as executive chairman. Several senior executives are reportedly under consideration as successors.

This development highlights the changing nature of global finance, where digital assets are no longer viewed as fringe investments. JPMorgan’s decision to facilitate Bitcoin purchases reflects growing demand among its private banking and wealth management clients, and reinforces the increasing normalisation of crypto within the legacy financial system.

Texas is on track to become the third US state to establish a strategic Bitcoin reserve, following the Texas House of Representatives' 101–42 vote in favour of Senate Bill 21 (SB 21). Co-authored by Senator Charles Schwertner and Representative Giovanni Capriglione, the bill proposes the creation of a state-managed Bitcoin reserve as a special fund separate from the state treasury. The Texas Comptroller of Public Accounts would oversee the fund, enabling the state to purchase, hold, and manage Bitcoin and approved cryptocurrencies using public funds. The initiative aims to position Texas at the forefront of financial innovation and digital asset adoption.

Under SB 21, only cryptocurrencies with an average market capitalisation exceeding $500 billion over the past year would be eligible for investment—effectively limiting the fund to Bitcoin under current conditions. The bill also authorises the Comptroller to engage third-party custodians and liquidity providers headquartered in Texas, supporting local economic activity while ensuring the secure handling of the reserve. Furthermore, the fund may accept private cryptocurrency donations, offering additional opportunities to strengthen its holdings.

The creation of the Texas Strategic Bitcoin Reserve is part of a wider trend among US states exploring the use of digital assets to improve financial resilience and diversify investment strategies. Once Governor Greg Abbott signs it into law, Texas will join New Hampshire and Arizona in integrating Bitcoin into state-level fiscal planning, demonstrating the increasing institutional legitimacy of crypto in public finance.

The US Senate has taken a major step forward in digital asset regulation with the advancement of the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins), a bill aimed at establishing a federal framework for the oversight of stablecoins. On 19 May, the Senate voted 66–32 in favour of progressing the legislation, marking a key moment in the formal recognition and regulation of stablecoins—cryptocurrencies pegged to assets such as the US dollar.

The bill includes provisions for reserve requirements, consumer protection measures, and issuance rules, offering much-needed regulatory clarity to a fast-growing segment of the crypto market. It has attracted bipartisan support, with backers arguing it could help integrate stablecoins into the broader financial system and reduce systemic risks. Market analysts suggest the act could accelerate the sector’s growth, potentially pushing stablecoin market capitalisation to between $2 trillion and $2.5 trillion by 2030. Critics, however, have raised concerns over potential conflicts of interest, citing former President Trump’s recent crypto ventures—including a meme coin and a family-backed stablecoin.

Despite the controversy, the GENIUS Act represents a landmark effort to regulate digital assets in a way that balances innovation with investor protection. If passed, it could solidify the United States’ position as a leader in digital finance. The bill now awaits further review and possible reconciliation with legislation introduced in the House of Representatives.

This week, Bitcoin reached a new all-time high of $111,970, driven by stronger institutional interest and positive regulatory developments. JPMorgan Chase reversed its stance to allow clients to buy Bitcoin, signalling a broader shift in traditional finance. Texas progressed plans to establish a state Bitcoin reserve, while the US Senate advanced the GENIUS Act to regulate stablecoins. Together, these events underscore the accelerating integration of digital assets into financial institutions and public policy.

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