Coin Stories News Block: New Bitcoin ATH Amid U.S. Debt Crisis, Bank Leverage Rules & Stablecoin Bill Aim to Boost Treasury Demand
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May 26, 2025 Bitcoin soars to $112K, outshining traditional markets in a time of U.S. fiscal challenges. Regulatory changes aim to alleviate bank capital requirements and boost demand for U.S. Treasuries. A bipartisan stablecoin bill moves forward, potentially unlocking new buyers for government debt. Despite Bitcoin's rally, interest and returning trends suggest we're early in the game. The government shifts from focusing on deficit cuts to managing debt through growth, signaling significant changes in economic strategy.
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Bitcoin Rally Is Early But Strong
- Bitcoin reached $112,000, outperforming stocks and bonds amid rising uncertainty and a weaker dollar.
- Despite this, Bitcoin's returns and search interest suggest the bull market rally is still in its early stages.
US Deficit and Debt Costs Rise
- The U.S. deficit is increasing, with new legislation adding $3.3 trillion in debt.
- Higher bond yields make government borrowing more expensive and riskier to refinance.
Bank Rules Tweaked to Boost Bonds
- The government aims to boost treasury demand by easing bank capital rules and encouraging bond buying.
- Changing the supplementary leverage ratio frees banks to purchase more treasuries, effectively a form of quantitative easing.