While crypto investors often look to Washington for clues about the next big market move, it seems that public emotions and crowd behavior might be playing an even bigger role. With U.S. interest rates on hold, spending bills, and stablecoin rules, the crypto market often moves faster than the news itself.
But the bigger question remains—are traders reacting to real changes or reacting to what they expect will happen?
Fed Says ‘No Cut Yet’
When the Federal Reserve recently held rates steady at 4.25%–4.50%, nobody was surprised. But many crypto investors had secretly hoped for hints of future rate cuts. That didn’t happen. Fed Chair Jerome Powell played it safe, saying they’ll wait and watch inflation.
This lack of clarity left crypto investors uncertain. Bitcoin, which had climbed as high as $112,000 the previous week, dropped 8% and hovered around $104,000. This shows that the market had likely “priced in” the Fed’s decision ahead of time.
Interestingly, altcoins like Solana, XRP, and Cardano, which usually react more sharply to market news, remained relatively stable.
According to Santiment’s on-chain data, traders appear to be following a pattern of “sell the rumor, buy the news,” reflecting indecision in a market waiting for a clearer direction.
GENIUS Act Brings Hope and Worry to Stablecoin
Another major update is the GENIUS Act, a bill passed by the U.S. Senate. It’s designed to bring clear rules to stablecoins like USDC and USDT. The bill says these tokens must be backed by real dollars and overseen by trusted financial regulators.
If it becomes law, it’ll force companies like Circle and Coinbase to follow strict rules and hold real-dollar reserves.
So far, social sentiment is bullish. But traders had already bought the rumor. If the House delays the bill, or nothing major follows, we could see prices cool off.
Bitcoin and the ‘Big Beautiful Bill’
The U.S. government’s massive spending plan, dubbed the “Big Beautiful Bill,” has reignited Bitcoin’s inflation hedge story. With fears of more money printing, many are turning to BTC as a way to protect their savings.
There’s also fresh interest in privacy coins like Monero and DeFi platforms like MakerDAO. Even meme coins with political themes are getting a moment in the sun.
If this bill adds crypto-friendly tax rules as rumored, it could actually simplify things for U.S. traders and bring more people into the space.
