Bitcoin and Ethereum plunged following the latest escalation in the Middle East and the increasing likelihood that the United States will be drawn into the conflict. Bitcoin dropped from $107,600 to $103,600, while Ethereum fell from a high of $2,605 to $2,465. However, during today's Asian session, both cryptocurrencies slightly recovered.

Meanwhile, U.S. Treasury Secretary Scott Bessent stated that the stablecoin market could reach $3.7 trillion by the end of the decade. With the successful adoption of the GENIUS Act, a significant increase in private sector demand for U.S. government bonds is expected. This would help reduce government borrowing costs, curb national debt growth, and improve global consumer access to dollar-based digital asset ecosystems.

This ambitious forecast and legislative initiative reflect the growing recognition of stablecoins as a key component of the modern financial system.

The projected growth of the stablecoin market is largely attributed to their ability to provide stability and transaction efficiency in the digital space, making them attractive to retail and institutional investors. The GENIUS Act aims to create a favorable regulatory environment for the development of the stablecoin market in the U.S.

Previously, the U.S. "Crypto Czar" David Sacks also stated that the adoption of a stablecoin law would significantly increase demand for U.S. government bonds from stablecoin issuers.

Moving forward, I will continue to buy Bitcoin and Ethereum on large pullbacks, anticipating a continuation of the intact medium-term bull market.

For short-term trading, refer to the strategies below:

Bitcoin

Buy Scenario

Scenario #1: Buy Bitcoin today at $105,500, targeting a rise to $106,300. Exit long positions around $106,300 and open short positions on a bounce. Before buying on a breakout, ensure that the 50-day moving average is below the current price and that the Awesome Oscillator is above zero.

Scenario #2: Buy Bitcoin from the lower boundary of $104,800 if there is no market reaction to its breakout, aiming for a rebound to $105,500 and $106,300.

Sell Scenario

Scenario #1: Sell Bitcoin today at $104,900, targeting a drop to $103,600. Exit short positions around $103,600 and open long positions on a bounce. Before selling on a breakout, ensure the 50-day moving average is above the current price and the Awesome Oscillator is below zero.

Scenario #2: Sell Bitcoin from the upper boundary of $105,500 if there is no market reaction to its breakout, aiming for a drop to $104,800 and $103,600.

Ethereum

Buy Scenario

Scenario #1: Buy Ethereum today at $2,542, targeting a rise to $2,576. Exit long positions around $2,576 and open short positions on a bounce. Before buying on a breakout, ensure the 50-day moving average is below the current price and the Awesome Oscillator is above zero.

Scenario #2: Buy Ethereum from the lower boundary of $2,516 if there is no market reaction to its breakout, aiming for a rebound to $2,542 and $2,576.

Sell Scenario

Scenario #1: Sell Ethereum today at $2,516, targeting a drop to $2,465. Exit short positions around $2,465 and open long positions on a bounce. Before breakout selling, ensure the 50-day moving average is above the current price and the Awesome Oscillator is below zero.

Scenario #2: Sell Ethereum from the upper boundary of $2,542 if there is no market reaction to its breakout, targeting a decline to $2,516 and $2,495.