Bitcoin Edges Higher While XRP and Ethereum Jump. Why Altcoins Are Surging. — Barrons.com
By Adam ClarkBitcoin was on the rise on Monday, but other cryptocurrencies were recording stronger gains. Crypto-related legislation looks to be fueling a rotation into other digital currencies that could be more immediate beneficiaries of the new laws.Bitcoin's price was up 0.5% over the past 24 hours at around $119,076. The world's largest cryptocurrency hit a record high of $123,166 last week during "Crypto Week" when multiple pieces of crypto-related legislation made their way through Congress.Several large altcoins were rising at a much faster clip. Ether gained 1.4%, while XRP climbed 0.6%. Solana was up 6.7% and memecoin Dogecoin surged 8.2%."Bitcoin has not been able to maintain its growth over the past week, consolidating around $118K after updating its historical highs. At such moments, enthusiasts carefully reduce their positions in BTC, increasing them in altcoins," wrote Alex Kuptsikevich, chief market analyst at FxPro, in a research note.President Donald Trump signed the Genius Act into law on Friday, establishing a framework for federal regulation of so-called stablecoins, whose prices are pegged to a real currency like the dollar. The bill requires issuers to maintain one-to-one reserves in U.S. dollars or Treasuries and bans interest-bearing stablecoins."The GENIUS Act's ban on yield-bearing stablecoins is driving institutional interest into Ethereum, which largely provides the network for stablecoins," wrote Deutsche Bank analyst Marion Laboure in a research note on Monday.However, arguably the more important piece of legislation is the Clarity Act, which addresses the question of whether cryptos are commodities or securities, and what regulator would oversee them. While it was approved by the House on Thursday, it still needs to pass the Senate.Whether Bitcoin can achieve further gains is likely to depend on the apparent progress of the Clarity Act through the Senate before the August recess. However, it could also receive a boost Tuesday, when a president's working group makes policy recommendations that could include a proposal for a strategic reserve of Bitcoin.Write to Adam Clark at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.