13.03.202610:21 Forex Analysis & Reviews: Stablecoins could be great tool to strengthen US economy

While Bitcoin continues to show resilience, trading above $71,000 with clear upside toward $75,000, Patrick Witt, the White House crypto adviser, said he is confident that yield-bearing stablecoins will help channel capital into the US banking system.

This view contrasts with concerns voiced by some in the banking sector, who see yield-bearing stablecoins as a potential threat to deposit stability. Recall that this issue is one of the most critical obstacles to passing the CLARITY bill.

The mechanism Witt points to is that foreign investors tend to swap their domestic currency for stablecoins issued by US entities. Those digital assets are typically backed by US dollars or US government bonds. Thus, the purchase of stablecoins effectively results in an inflow of foreign capital to the US economy.

"When investors convert funds into stablecoins backed by dollars or US treasuries, that capital is, in effect, consolidated within the US financial system," Witt said. "This can happen through the stablecoin issuers' purchase of corresponding assets or via deposits placed with US banks." For the banking system, that means, first, increased liquidity and, second, potential access to those funds for lending or investment.

Despite fears that stablecoin yields might compete with bank deposits, Witt suggests the benefits of attracting new — especially foreign — capital could outweigh the risk of deposit outflows. The point is that stablecoins backed by reliable US assets ultimately support the dollar's stability and attractiveness, which indirectly strengthens the banking system.

Trading recommendations

Bitcoin

Buyers are currently aiming for a return to $73,000, which would open a direct path to $74,600 and then to $77,400. The most distant upside target is around $80,000; a break above that would signal attempts to resume the bull market. On the downside, buyers are expected at $70,900. A move back below that area could quickly push BTC down toward $69,300, with a further downside target near $66,700.

Ethereum

A clear close above $2,169 would open the way to $2,279. The most distant upside target is near $2,368; a break above that would indicate strengthening bullish sentiment and renewed buyer interest. On the downside, buyers are expected to enter at $2,078. A move below that area could quickly send ETH toward $1,007, with a further downside target near $1,915.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.