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For a deeper dive, see our full XRP forecast here.
Bitcoin Gains as GENIUS Act Makes Progress
While XRP faced selling pressure, Bitcoin (BTC) trended higher on May 20 as investors considered the GENIUS Act vote on Capitol Hill. The Senate passed the GENIUS Act on May 19, with 16 Democrats reportedly changing their vote to support the bill. The passing of the GENIUS Act into law could be crucial for other crypto-related legislation to progress.
Crypto Amicus Curiae attorney John E. Deaton recently remarked:
“If Congress can’t get the GENIUS Act passed, we won’t see a Market Structure’s Bill, which means we won’t see any long-lasting reform until 2029, depending on how the Presidential election goes.”
Significantly, passing the GENIUS Act into law could pave the way for a vote on the Bitcoin Act. Senator Cynthia Lummis recently reintroduced the Bitcoin Act, proposing the US acquire one million BTC over five years with a 20-year statutory hold. If passed, BTC could climb to new highs on tighter supply.
BTC-Spot ETF Inflows Boost Demand
Meanwhile, the US BTC-spot ETF market contributed to the session’s gains, with total net inflows of $667.4 million on May 19. The US BTC-spot ETF market may extend its inflow streak to five sessions on May 20, underscoring positive investor sentiment.
According to Farside Investors, key flow trends for May 20 included:
- Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows of $23.3 million.
- ARK 21Shares Bitcoin ETF (ARKB) reported net inflows of $6.4 million.
- Grayscale Bitcoin Mini Trust (BTC) registered net inflows of $6.2 million.
- Bitwise Bitcoin ETF (BITB) had net inflows of $5.8 million.
Excluding BlackRock’s (BLK) pending iShares Bitcoin Trust (IBIT) data, the US BTC-spot ETF market saw total inflows of $41.7 million.
Market intelligence platform Santiment remarked on recent flow trends, stating:
“Bitcoin ETFs are seeing massive inflows, a trend that began in mid-April. Over the past 5 weeks, there has been a net inflow of $6.63B across BTC ETFs. This is historically a bullish sign for future price movement.”
BTC Price Outlook: Monitor Capitol Hill and ETF Trends
BTC gained 1.21% on May 20, reversing Monday’s 0.85% loss to a record high close at $106,856.
BTC’s short-term trajectory hinges on Capitol Hill developments, global trade conditions, macro data, and ETF inflows.
Potential scenarios:
- Bearish Scenario: Renewed trade tensions, legislation deadlock, US recession fears, and ETF outflows. Bearish sentiment could send BTC below $100,000.
- Bullish Scenario: Easing trade tensions, upbeat US economic data, GENIUS Act progress, and ETF inflows. Bullish sentiment could drive BTC above the record high of $109,312.
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