Daily Crypto Signals: Bitcoin Eyes $110K Amid Regulatory Clarity, Uniswap Surges 38% on Fee Burn Proposal
The cryptocurrency market experienced significant developments as Bitcoin formed a double bottom pattern targeting $110,000 while the US
Quick overview
- Bitcoin formed a double bottom pattern, targeting $110,000, while the US Senate released a draft crypto market structure bill to clarify regulatory authority over digital assets.
- Uniswap's native token surged 38% after a proposal to burn 100 million UNI tokens, representing 16% of its circulating supply, and implement a protocol-level fee system.
- The Bank of England initiated consultations on stablecoin regulations, suggesting issuers back a significant portion of their liabilities with deposits and government debt.
- The IRS updated rules to allow crypto exchange-traded products to participate in staking, indicating growing institutional acceptance of cryptocurrency.
The cryptocurrency market experienced significant developments as Bitcoin BTC/USD formed a double bottom pattern targeting $110,000 while the US Senate released a draft crypto market structure bill and opened doors for ETFs to participate in staking. Uniswap’s native token UNI/USD rallied 38% following a groundbreaking proposal to activate protocol fees and burn 100 million UNI tokens, representing 16% of its circulating supply, while the Bank of England launched consultations on stablecoin regulations.
Crypto Market Developments
There were a number of legislative and market changes in the cryptocurrency business that could affect the direction of the industry until 2026. The US Senate Agriculture Committee issued a much-anticipated draft of crypto market structure legislation. This is a big step toward making the rules clearer for everyone. The draft’s goal is to make clear the limits of the Commodity Futures Trading Commission’s and the Securities and Exchange Commission’s authority over digital assets.
The Internal Revenue Service made changes to its rules to provide a safe harbor that lets crypto exchange-traded products take part in staking activities. This is a hint that institutions are becoming more accepting of crypto. This change gets rid of a big legal problem that had kept fund sponsors and asset managers from adding staking yields to regulated investment products. Scott Bessent, the Secretary of the Treasury, said that this advice gives crypto ETPs “a clear path to stake digital assets and share staking rewards with their retail investors.”
The Bank of England wrote a consultation document that suggested a set of rules for “systemic stablecoins” that are pegged to the British pound. The idea would force issuers to back at least 40% of their liabilities with deposits at the BoE that don’t earn interest. They may also back up to 60% of their liabilities with short-term UK government debt. The central bank wants to hear from people until February 2026, and the rules are expected to be final by the end of the year. The framework suggests that individuals can only have 20,000 British pounds worth of stablecoins and businesses can only retain 10 million pounds worth of stablecoins. This shows that regulators are trying to find a balance between innovation and worries about financial stability.
Bitcoin’s Next Target: $110,000
Bitcoin (BTC) formed a perfect double bottom pattern over the weekend, closing the week above its 50-week moving average at roughly $106,000. There was a daily order block between $98,100 and $102,000 at the same time as the formation. BTC kept testing the important $100,000 mark before bouncing back. Bitcoin is now facing resistance near $111,300 after a bullish break of structure on the four-hour chart. However, onchain data suggests that this advance may run into problems.
Glassnode’s research shows that Bitcoin bounced back from the 75th percentile cost basis, which is close to $100,000. However, the next big challenge is the 85th percentile cost basis, which is around $108,500. This level has been a barrier during recovery advances in the past because it is where a lot of investors bought their holdings. There is still a major short-term risk, though: a CME gap between $103,100 and $104,000. This might cause a short-term drop because traders generally fill these gaps when they come back to these levels.
Uniswap Surges on New Token Burn Proposal
Uniswap (UNI) The price of Uniswap’s native token shot up 38.5% to $9.70 when the Uniswap Foundation and Uniswap Labs announced the “UNIfication” proposal. The full proposal intends to set up a protocol-level fee system to burn UNI tokens and a Protocol Fee Discount Auctions system to help liquidity providers get more money. The governance token’s market capitalization rose beyond $6 billion on the news, propelling it to the 34th largest cryptocurrency by market cap.
The main part of the idea is to burn 100 million UNI tokens from the treasury, which is about 16% of the token’s circulating supply. This might have a big effect on how supply and demand work. Also, fees from Unichain, Uniswap’s Ethereum layer 2 solution that has made $7.5 million in annualized fees since it started nine months ago, will go to the same burn mechanism.
The Uniswap Foundation said that this proposal makes the protocol “the default decentralized exchange for tokenized value,” and it also said that it would keep giving out grants for protocol development and help decentralized finance builders through a new Growth Budget that would give out 20 million UNI tokens. Uniswap is the biggest decentralized exchange, with a total volume of about $4 trillion since November 2018. Its decision to move toward value accrual mechanisms is a big change in its tokenomics strategy.
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