Dow Flat as Bitcoin EXPLODES to New Highs! What’s Next?

Dow Jones seesaws, ends flat as <a href="https://zarusd.com/btc-usd/">Bitcoin</a> hits new all-time high

As a researcher, I observed an assortment of outcomes within the U.S. stock market on Thursday, as investors pondered over the House’s slim endorsement of President Trump’s extensive tax and expenditure bill.

In a modest decline, the S&P 500 dropped by 0.04%, while the Dow Jones Industrial Average remained unchanged, and the Nasdaq Composite saw a slight increase of 0.28% in its performance.

The proposed legislation, estimated by the Congressional Budget Office to increase the federal deficit by almost $4 trillion, encompasses broad tax reductions and higher military expenditures.

After some final adjustments, such as increasing allowances for deducting state and local taxes – a move intended to win over conservative legislators – the bill was narrowly approved in the House. It is now moving on to the Senate for further consideration.

The surge in Treasury yields dampened the optimism among investors. For a moment, the price of the 30-year bond surpassed 5.16%, reaching its peak since 2023, before subsequently decreasing.

The benchmark 10-year yield also pulled back slightly to 4.55%. 

Analysts explained that a low interest in this week’s 20-year government bond sale likely triggered the initial drop in U.S. Treasury bonds. Additionally, worries regarding the long-term solvency of the debt continue to linger.

In the short run, Jed Ellerbroek of Argent Capital believes the tax bill benefits the economy. However, he points out that over a longer period, this legislation increases the national debt, which is not favorable for market conditions.

Bitcoin keeps hitting all-time highs

Bitcoin’s price surge continues, reaching beyond $111,000, due to growing optimism about the progress in Senate regulations for stablecoins and excitement surrounding an upcoming event featuring significant cryptocurrency investors who are also Trump donors.

In contrast to previous surges in Bitcoin’s value, the recent upswing generated less enthusiasm among derivatives traders. The increase in price seems to be fueled more by genuine interest in owning Bitcoin (spot market demand) rather than speculation. Analysts point out that while there is some bullish sentiment, it remains relatively modest as shown by the low long/short ratios and infrequent liquidations.

Read More

2025-05-22 23:57

Previous post FIFA’s Blockchain Bonanza: A Digital Revolution or Just Another Fad? 🤔
Next post Superman Creator’s Estate Reportedly Files New Lawsuit To Block James Gunn’s Movie From Releasing In Certain Countries