| Reading time: 5 minutes | News | Crypto Converter | Crypto Calculators | US Fed's $612B liquidity boost could drive Bitcoin rally in Q1 2025 — Arthur Hayes | | Key points: | Bitcoin dipped below $100,000, falling nearly 6% in the last 24 hours but remains poised for a rally in Q1 2025. $612 billion in new liquidity from the US Federal Reserve by March may offset delays in crypto regulations under the incoming Trump administration.
| News: Fed liquidity and Bitcoin's Q1 outlook - Bitcoin (BTC) dropped below the $100,000 mark on January 8, 2025, marking a 6% decline over the past 24 hours. While the incoming Trump administration has sparked optimism for crypto-friendly regulations, delays in implementing such policies could weigh on investor sentiment. | However, Arthur Hayes, co-founder of BitMEX, believes the US Federal Reserve's injection of $612 billion into the economy during Q1 2025 could act as a major tailwind for Bitcoin. "A letdown by team Trump on his proposed pro-crypto and pro-business legislation can be covered by an extremely positive dollar liquidity environment, an increase of up to $612 billion in the first quarter," Hayes noted in his January 7 blog post. | Insights: Market reactions and institutional optimism - The recent BTC correction is attributed to reduced institutional activity during the holiday season. Analysts anticipate that institutional investors will redeploy capital as the new year gains momentum, potentially helping Bitcoin reclaim the $100,000 level before Donald Trump's January 20 inauguration. | Binance Research suggested that "institutional liquidity boosts" could enable Bitcoin to breach $100,000 in the short term. However, sustaining those levels would require supportive macroeconomic conditions and the timely rollout of pro-crypto regulations. | What's next? - Hayes predicts a Bitcoin correction in March 2025, driven by potential regulatory delays, despite the liquidity boost. Analysts remain bullish for the year, with some forecasting a cycle top above $150,000 in late 2025, fueled by global money supply expansion and increased institutional adoption. | Meanwhile, institutional players like KULR Technology Group have expressed optimism, with the firm forecasting a $200,000 Bitcoin price target by 2025 after "buying the dip" at $97,000. | Shiba Inu faces largest selloff since 2022 as traders realize $426M in profits | | Key points: | SHIB traders realized $426 million in profits on January 7, triggering its largest single-day selloff since February 2022. SHIB's RSI at 41.96 has signaled growing selling pressure, with risks of further declines unless accumulation strengthens.
| News: Traders drive largest SHIB selloff since 2022 - Leading meme coin Shiba Inu (SHIB) recorded its largest single-day profit-taking since 2022, with traders cashing out $426 million on January 7, 2025. This massive selloff caused a 10% price drop in the last 24 hours, reflecting increased market pressure. | Analysis: Selling pressure weighs on SHIB price - The surge in profit realization, as measured by the Network Realized Profit/Loss (NPL) metric, indicates heightened selling activity. With SHIB's RSI dropping to 41.96 — below the neutral 50-mark — bearish momentum has intensified. | Adding to this, SHIB has been trading within a descending parallel channel for 30 days. This bearish technical pattern suggests that unless accumulation increases, SHIB could see further declines, potentially testing $0.000018. | What's next? - For SHIB to avoid further losses, profit-taking must subside, allowing accumulation to stabilize the price. A breakout from the descending channel could shift the narrative, pushing SHIB toward $0.000025 or even $0.000033. Until then, investors should brace for potential volatility. SHIB currently trades at $0.000020, down 10% in the last 24 hours. | XRP ETF on the horizon as Ripple's RLUSD gains momentum, says President Monica Long | | Key points: | Ripple President Monica Long predicts XRP could be the next crypto to secure a U.S. ETF, following Bitcoin and Ethereum. RLUSD, Ripple's stablecoin, gains traction with a $72M market cap and growing DeFi integration.
| News: Ripple president eyes XRP ETF amid regulatory optimism - In a recent Bloomberg interview, Ripple President Monica Long expressed optimism about the approval of an XRP exchange-traded fund (ETF). "I think we will see one very soon," Long said, highlighting the favorable regulatory environment under the Trump administration. | Ripple's RLUSD stablecoin, which launched in December on Ethereum and the XRP Ledger, is also gaining momentum. Long revealed plans for RLUSD to expand its availability on exchanges and play a significant role in Ripple's payments business. | Analysis: Growing U.S. crypto adoption boosts XRP prospects - Ripple's push for an XRP ETF is bolstered by the speculative optimism surrounding the Trump administration's crypto-friendly policies. With multiple firms, including Bitwise and WisdomTree, filing for XRP ETFs, the regulatory landscape appears increasingly accommodating. | Additionally, RLUSD's integration with Chainlink highlights Ripple's efforts to expand its footprint in decentralized finance (DeFi). With a current market cap of $72 million, RLUSD is poised to become a key player in Ripple's ecosystem. | What's next? - Ripple's growing U.S. business activity and XRP's recent 300% price surge signal strong momentum for the token. If approved, an XRP ETF could further solidify its position as a top cryptocurrency. Traders are closely watching for regulatory updates, which could pave the way for more spot ETFs in the coming months. | Ripple's trajectory underlines the increasing convergence of traditional finance and blockchain, with significant implications for both DeFi and institutional crypto adoption. | Bhutan's GMC pioneers crypto reserves with BTC, ETH, and BNB | | Key points: | Gelephu Mindfulness City (GMC), a Special Administrative Region in Bhutan, has incorporated Bitcoin, Ethereum, and Binance Coin into its financial reserves. This move positions GMC as a pioneer in crypto adoption, fostering economic resilience and global technological leadership.
| News: Bhutan leverages crypto for economic resilience - Bhutan's Gelephu Mindfulness City (GMC) has taken a bold step by adopting Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) as strategic reserve assets. This innovative approach is aimed at strengthening the region's economic resilience and solidifying its position as a global crypto hub. | The official announcement from GMC highlighted the focus on high-liquidity, secure digital assets, ensuring minimal price impact during transactions. This adoption follows the implementation of GMC Law No. 1 of 2024, which established a legal framework for digital asset services. | Development: Strategic and global implications - The inclusion of cryptocurrencies in strategic reserves marks an evolution of Bhutan's involvement in blockchain technology and Bitcoin mining. Notably, BNB's selection has drawn attention, with Binance founder Changpeng Zhao expressing support, citing the blockchain's maturity and scalability. | GMC's leadership also extends to international collaboration. A summit planned for March 2025 will convene global leaders to discuss digital asset strategies, aiming to create an international advisory panel on crypto adoption. | What's next? - Bhutan's move reflects a broader global trend, as countries like the Czech Republic, Switzerland, and several U.S. states explore Bitcoin's integration into national reserves. | By coupling strong legal frameworks with forward-thinking financial strategies, GMC is setting a precedent for the global adoption of digital assets. Its success could inspire similar initiatives worldwide, reshaping the future of financial innovation. | | More stories from the crypto ecosystem | | Interesting facts | In 2017, the Bitcoin network processed over $1 billion in daily transactions for the first time, marking a major milestone in the cryptocurrency's adoption and usage as a store of value and medium of exchange in the global economy. The largest decentralized exchange (DEX) by volume, Uniswap, was launched in 2018. It revolutionized the way people trade cryptocurrencies by allowing peer-to-peer transactions without relying on a centralized intermediary, fueling the rise of decentralized finance (DeFi) platforms. The Ethereum network hosts over 3,000 decentralized applications (dApps), spanning industries from finance to gaming, as of 2024. Ethereum has become the backbone of the DeFi ecosystem, with billions of dollars locked into DeFi protocols, enabling decentralized lending, borrowing, and more.
| | Top 3 coins of the day | Ethereum (ETH) | | Key points: | At press time, ETH was trading at $3,358, reflecting a 0.68% decrease over the last 24 hours. It remained one of the top trending cryptocurrencies, as per CoinMarketCap.
| What you should know: | ETH traded within a relatively narrow range over the past 24 hours, slipping 0.68% and maintaining its position as one of the most closely watched cryptocurrencies. On the daily chart, the Bollinger Bands indicated reduced volatility, with the price hovering near the middle band. This suggests consolidation after recent fluctuations. The Directional Movement Index (DMI) showed a mixed trend. The +DI and -DI lines were nearly converging, hinting at a potential tug-of-war between buyers and sellers. Meanwhile, trading volume showed a mild decline, reinforcing the ongoing market indecision. Immediate support lies around $3,200, which aligns with the lower Bollinger Band, while resistance is positioned near $3,675, coinciding with the middle band. Traders should monitor Ethereum's movement closely, as a break below support may trigger further corrections, while sustained buying could push the price back toward its resistance levels. | XRP (XRP) | | Key points: | At press time, XRP was trading at $2.31, reflecting a 1.90% increase over the last 24 hours. It remained one of the top trending cryptocurrencies, as per CoinMarketCap.
| What you should know: | XRP showed modest gains over the past 24 hours, rising by 1.90%. The Parabolic SAR indicated a bullish trend, with the dotted markers positioned below the price action, suggesting that buying pressure has remained dominant. The Moving Average Convergence Divergence (MACD) displayed a slight bullish crossover, as the MACD line (blue) moved above the signal line (orange), accompanied by green histogram bars. This hints at the potential for continued upward momentum. Trading volume has been relatively steady, with no significant spikes to suggest extreme volatility. The ongoing volume levels align with a phase of gradual price recovery. Immediate support for XRP is located at $2.20, which coincides with the recent consolidation zone. Resistance is positioned at $2.45, near the recent highs. A break above this level could pave the way for a retest of $2.80, while a loss of support at $2.20 might invite short-term bearish action. Traders should monitor the MACD closely for sustained bullish momentum and observe the Parabolic SAR for any potential shifts in trend. | Celestia (TIA) | | Key points: | At press time, TIA was trading at $4.60, reflecting a 5.64% decrease over the last 24 hours. It ranked among the biggest losers in the market, as per CoinMarketCap's data.
| What you should know: | TIA dropped significantly in the last 24 hours, registering a 5.64% loss and cementing its position as one of the biggest market losers. On the daily chart, the Bollinger Bands suggested elevated volatility, with the price nearing the lower band at $4.43, indicating potential oversold conditions. The RSI was at 36.41, moving closer to the oversold territory. This reflects sustained bearish momentum, with sellers maintaining control of the market. Trading volume showed moderate activity, highlighting cautious sentiment among market participants as TIA continued its decline. Immediate support lies around $4.43, aligning with the lower Bollinger Band. Resistance is positioned near $5.68, coinciding with the middle band. Traders should monitor TIA closely, as a break below support could lead to further declines toward $4.00, while sustained buying may trigger a recovery to the $5.00-$5.50 range. | How was today's newsletter? | |
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