Bitcoin and Ethereum dropped yesterday during a North American session, but most of the decline had been recovered by the time of today's Asian session.

While the market is currently under some pressure, which is likely more related to large players waiting for more attractive prices rather than a complete absence of them, the US Senate has confirmed crypto-friendly candidate Howard Lutnick as the 41st Secretary of Commerce. The confirmation was made with 51 votes in favor and 45 against.

As noted in the final protocol, Lutnick will focus on creating jobs, promoting economic growth, and encouraging innovation in his role as Secretary of Commerce. Lutnick is expected to support Trump's trade agenda, which includes a focus on high tariffs on goods from US trading partners.

Before his appointment, Lutnick gave up his business interests in Cantor Fitzgerald, BGC Group, Inc., and Newmark Group, Inc. to comply with US government ethical standards. Remarkably, Cantor provides services for the storage of Tether, which is currently the largest stablecoin with a market capitalization of $141.7 billion.

Why is Lutnick's appointment a positive development for the cryptocurrency market?

Just a year ago, the new US Secretary of Commerce publicly supported Tether at the Bitcoin 2024 conference in Las Vegas, confirming that USDT is fully backed one-to-one by US Treasury bonds, Bitcoin, and gold. During Senate hearings on trade last month, Lutnick once again defended Tether, answering questions about Tether's USDT reserves and the stablecoin's involvement in illegal financing.

The new US Secretary of Commerce is also known as a strong advocate for Bitcoin and previously stated that he personally owns Bitcoin. In his opinion, Bitcoin, like gold, should be able to freely trade anywhere in the world. No doubt, this stance fuels interest in cryptocurrencies and opens up new horizons for their integration into the US and potentially the global economy. The appointment of a Bitcoin supporter to such a high position signals a potential easing of regulatory policies regarding cryptocurrencies in the US.

Investors and crypto enthusiasts have high hopes that, with the support of the Secretary of Commerce, the creation of clear and favorable legislation for digital assets will be introduced. This could attract more innovative companies and investments into blockchain technologies.

As for the technical picture of Bitcoin, buyers are currently targeting a return to the $96,200 level, which opens the direct path to $97,400. From there, it's close to $98,800. The furthest target will be the high around $100,200, and a breakthrough of this level will signal a return to a mid-term bull market. In case of a Bitcoin decline, buyers are expected around the $95,100 level. A return of the trading instrument to this area could quickly push BTC to the $93,900 region, and from there, the $92,700 level is nearby. The furthest target would be the $90,600 area.

As for Ethereum's technical picture, a clear consolidation above $2,704 opens the direct path to $2,766. The furthest target will be the one-year high at about $2,824. A breakthrough of this level will signal a return to a mid-term bull market. In case of an Ethereum correction, buyers are expected at the $2,649 level. A return of the trading instrument to this area could quickly push ETH to the $2,587 region, with the furthest target at the $2,528 area.