dividends

The cryptocurrency market received a threefold boost, nudging bitcoin (BTC) toward a key test of a former support-turned-resistance zone above $106,000. What happens afterward could set the tone for the next major leg in the cycle.

Optimism was first sparked by a Truth Social post from President Donald Trump, who promised a $2,000 dividend to low-income Americans, funded by trade tariff revenues. The crypto crowd quickly decided the payout would be in the form of direct stimulus checks — a clear parallel to the 2021 Covid-era payments that helped propel unprecedented altcoin rallies.

However, Treasury Secretary Scott Bessent suggested that the #dividends might be delivered through less direct and less potentially bullish, measures, such as tax cuts.

The second thrust was the #US Senate’s decision to advance a measure likely to fund the government through January, ending a record-long shutdown that has kept crucial economic data tightly under wraps. Yet, as ING notes, the real test lies in whether Congress can keep up the momentum over the next 48 hours.

Lastly, financial conditions have eased, with the key #bank ing sector spread reversing the late October spike. Meanwhile, the dollar index's rally has stalled after hitting resistance at the August high of 100.25.

Taken together, these catalysts could help bitcoin move past the $106,000-$107,000 resistance zone and revive demand for the 11 U.S.-listed spot #etf 's, which have collectively experienced $2.8 billion in outflows over the past four weeks.

On the other hand, a failure to penetrate the resistance zone could cement a bearish trend, opening doors for a deeper sell-off.

In altcoins, most of the action is in XRP as five spot ETFs tied to the payments-focused token have appeared on the DTCC list, raising hopes for an imminent approval. Privacy coins continue to shine as well, with ZEC rising to $630 from Friday's drop to $500.

In other news, Acting #CFTC Chair Caroline Pham said the agency is collaborating with registered exchanges to launch leveraged spot crypto products as early as next month.

In traditional markets, futures tied to the S&P 500 are up 0.5%, signaling risk-on. Stay alert!

Source: CoinDesk Daybook

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