Morning Note: Stablecoin Boom on Senate Bill; SNB and BoE Rate Decisions Awaited

Stablecoin Market Hits Record $251.7B After U.S. Senate Bill

The total market capitalisation of stablecoins soared to a record high on Wednesday, reaching $251.7 billion, according to CoinDesk data. This marks a 22% increase so far this year and reflects growing investor confidence, coinciding with the U.S. Senate’s passage of a landmark bill to regulate the sector. The move represents a significant step toward legitimising what was once a niche segment of the crypto market, now expanding rapidly in both usage and influence.

The market expects the stablecoin market to grow even further if the legislation is signed into law. The bill would require stablecoins to be backed by highly liquid assets, such as U.S. dollars or short-term Treasury bills, and for issuers to publish monthly disclosures of their reserve compositions. Supporters argue that stablecoins could revolutionise payments by enabling instant transactions, while critics warn of increased interconnectedness between crypto assets and the broader financial system.

(Bitcoin Daily Price Chart, Source: Trading View)

From a technical analysis perspective, Bitcoin has been moving in a bullish trend since April 2025, after rebounding from the support zone of 78,000 – 79,000, supported by a significant double bottom candlestick pattern. Recently, it has faced multiple rejections from the resistance zone of 109,000 – 111,000, pushing the price lower and leading to a retest of the current swap zone at 103,200 – 104,400.

If bearish pressure drives the price below this swap zone, Bitcoin could potentially decline further to retest the order block between 99,500 and 100,500. Conversely, if the price finds support at this zone, it may potentially continue its bullish movement and move higher to retest the resistance zone.

Swiss Rate Cut in Sight as Inflation Stays Tame

The Swiss National Bank (SNB) currently maintains its policy rate at 0.25%. However, markets are widely anticipating a rate cut to 0.00% in the upcoming policy decision. This data is set to be released today at 0730 GMT.

This expectation stems from persistent disinflationary pressures in Switzerland, where consumer price growth has remained well below the SNB’s 2% target. The Swiss franc's strength, bolstered by perceived safe-haven flows, has further dampened imported inflation, tightened financial conditions and weighed on exports. Additionally, with major central banks like the ECB signalling dovish pivots, the SNB may seek to ease monetary conditions preemptively to support domestic growth and maintain currency competitiveness without risking inflation overshooting.

(USD/CHF Daily Chart, Source: Trading View)

From a technical analysis perspective, the USD/CHF currency pair has been in a bearish trend since January 2025, as indicated by the formation of lower highs and lower lows. Recently, the pair rebounded from the order block between 0.8060 and 0.8090 and is currently retesting the swap zone at 0.8070 – 0.8200. If the pair can close decisively above this swap zone, it may signal that bullish momentum has temporarily regained control, potentially driving the pair higher.

BoE Likely to Hold Rates at 4.25%

The Bank of England (BoE) last held its benchmark interest rate at 4.25%, and markets widely expect the central bank to maintain the same level in its upcoming policy decision today at 1100 GMT. Holding rates at 4.25% allows policymakers to strike a balance, maintaining pressure on inflation while avoiding an overtightening that could harm the economy.

(GBP/USD Daily Chart, Source: Trading View)

From a technical analysis perspective, the GBP/USD currency pair has been in a bullish trend since January 2025, as indicated by the formation of higher highs and higher lows. Recently, the pair was rejected from the order block at 1.3570 – 1.3600, which has pushed the price lower. It is currently retesting the swap zone between 1.3380 and 1.3420.

If bearish pressure drives the pair below this swap zone, it may potentially decline further to retest the support zone at 1.3230 – 1.3270. Conversely, if the price finds support at this level, it could resume its bullish momentum, possibly leading to another retest of the resistance zone.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.