{"id":25371,"date":"2025-05-06T12:01:42","date_gmt":"2025-05-06T12:01:42","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=25371"},"modified":"2025-05-06T12:01:42","modified_gmt":"2025-05-06T12:01:42","slug":"crypto-daybook-americas-bitcoin-threatened-by-regulation-hiccup-weakening-demand","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=25371","title":{"rendered":"Crypto Daybook Americas: Bitcoin Threatened by Regulation Hiccup, Weakening Demand"},"content":{"rendered":"
\n

By Omkar Godbole (All times ET unless indicated otherwise)<\/p>\n

As bitcoin (BTC<\/a>) and the wider crypto market await the Fed’s rate decision<\/a> on Wednesday, an anomaly has emerged that could weigh heavily on market mood: renewed doubt over the passing of U.S. crypto regulation.<\/p>\n

Early Tuesday, CoinDesk reported<\/a> that Senate Democrats are hesitant to push forward landmark stablecoin legislation, citing concerns over President Donald Trump’s growing personal gains from his crypto ventures.<\/p>\n

When Trump took office, many observers felt crypto regulation would proceed smoothly. Looking back, that optimism was probably misplaced. With the president actively involved in digital assets through family-linked projects like WLFI<\/a> and memecoins, opposition has mounted, potentially slowing the regulatory progress.<\/p>\n

That might lead investors to reprice regulatory uncertainty just as charts for BTC and XRP are signaling pullback risks<\/a>. Additionally, according to CryptoQuant, there are signs of renewed weakness in bitcoin demand from U.S.-based investors. <\/p>\n

“Over the past month, the premium recovered significantly but is now dropping again \u2014 aligning with the recent BTC price correction,” CryptoQuant contributor AbramChart said<\/a>.<\/p>\n

On the positive side, U.S.-listed spot bitcoin exchange-traded funds (ETFs) marked three straight days of net inflows.<\/p>\n

Acting CFTC Chairman Caroline Pham told<\/a> crypto journalist Eleanor Terret that the derivatives market regulator plans to observe a handful of tokenization pilot programs to evaluate the technology and see how well tokenized assets function in the real world .<\/p>\n

Speaking of traditional markets and macro, Taiwan dollar forward contracts signal extreme pressure<\/a> on the U.S. dollar, meaning the greenback could continue to weaken against the Asian currency and probably major currencies like the euro. The broad-based USD weakness may act as a tailwind for crypto. FX market volatility could drive investors to gold and perhaps bitcoin, too, unless it leads to a broad-based risk-off, in which case BTC may feel the heat.<\/p>\n

The other bullish development is the U.S. Treasury Secretary Scott Bessent’s comments<\/a> that U.S. rates now carry sovereign credit risk and not just long-term growth and inflation expectations. In other words, rates are artificially high because the U.S. government itself is now the risk premium, as pseudonymous observer EndGame Macro said<\/a>. So, a shift away from U.S. assets and into alternative investments could continue. Stay alert!<\/p>\n

What to Watch<\/strong><\/h2>\n