24.09.202610:30 Forex Analysis & Reviews: With the light press of two keyboard keys, the paper dollar turns into...

Yesterday, news broke that the Trump administration is considering an initiative to promote dollar-pegged stablecoins abroad in an effort to reinforce the dollar's role as the world's reserve currency.

Authorities are already discussing creating joint ventures with private companies specifically for stablecoin projects, pursuing two interconnected goals: to preserve the dollar's dominance in the global monetary system and to boost demand for US Treasuries, since stablecoin issuers traditionally hold reserves for their tokens in cash dollars and short-term government debt.

The causal logic is straightforward: the more dollar stablecoins circulate outside the US, the more Treasury paper is needed to back them, so rising global demand for stablecoins directly becomes an additional source of financing for US government debt without requiring higher yields to attract traditional foreign Treasury buyers.

Broadly, the same logic applies to issuing paper dollars, which lately has not helped Treasuries much. Remember that yields have already topped 5% and show no sign of falling, indicating weak demand for bonds and a heavy US debt-servicing burden.

Notably, this initiative logically continues an existing legislative groundwork: last year's GENIUS Act, signed by the president, set federal rules for stablecoins, obliging issuers to hold reserves in dollars and short-term Treasuries. Treasury Secretary Scott Bessent has previously said the growth of the stablecoin market can strengthen the dollar's role as the global reserve currency, so current discussions look less like a new policy direction and more like a natural next step from domestic regulation to international promotion of an already established model.

The main beneficiary of such a strategy is the US sovereign debt itself, which would gain a structural source of demand tied not to foreign central bank decisions but to the organic expansion of private dollar usage via technological infrastructure. In other words, the need to print US dollars can now be reduced to pressing two keyboard keys to issue its electronic version as a stablecoin.

Technical outlook for Bitcoin Buyers are currently targeting a return to $87,300, which would open a direct path to $90,000 and then to $92,100 — a break above which would signal attempts to restore the bull market. On the downside, buyers are expected to defend $85,300; a move below that level could quickly push BTC toward $83,600. A further downside target is $81,600.

Technical outlook for Ethereum A clear hold above $2,770 opens the way to $2,872, with a further target around $2,920 — a break above which would reinforce bullish sentiment and restore buyer interest. On the downside, buyers are expected at $2,660; a fall below that level could quickly send ETH toward $2,570. A further downside target is $2,486.

What's on the chart

• The red lines represent support and resistance levels, where the 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.