Weekly crypto recap: This week brought some big news in the crypto world, from new market highs to shifts in regulations and updates from major companies. Here’s a breakdown of the top stories that are impacting the crypto industry.
1. Market Milestones and Economic Changes
Source | Decrypt
Bitcoin Nears $77K Amid ‘Long Squeeze’ Concerns
Bitcoin’s price is close to hitting $77,000, which is a major milestone. But analysts are warning about a possible “long squeeze,” which happens when there’s too much borrowing, or “leverage,” in the market. If Bitcoin’s price suddenly drops, this could cause many investors to sell quickly, leading to a big price dip.
Trump Wins US Election: Crypto-Friendly Promises
Donald Trump’s win in the US election may bring big changes for crypto regulation. Trump is known for supporting the crypto industry, and he has made several promises:
- National Bitcoin Reserve: Trump wants to create a US Bitcoin reserve, which would make Bitcoin a bigger part of the country’s digital plans.
- Changes at the SEC: Trump says he’ll fire SEC Chairman Gary Gensler, who has been tough on crypto companies. Dan Gallagher, Chief Legal Officer at Robinhood, might replace him.
- Clearer Crypto Rules and More Bitcoin Mining: Trump wants clearer rules for crypto and plans to support Bitcoin mining in the US.
If these promises happen, they could lead to big changes and encourage more growth in the US crypto industry.
Federal Reserve Cuts Interest Rates by 0.25%
The US Federal Reserve decided to lower interest rates by 0.25%, from 5.00% to 4.75%. This move is meant to boost the economy. Lower interest rates often lead investors to look for other places to put their money, like crypto, to get better returns.
Bank of England Lowers Rates Too
The Bank of England also lowered its interest rate to 4.75%. Similar to the US, this move could drive more interest in cryptocurrency in the UK, as lower bank rates often push people to explore alternative investments like digital assets.
2. Global Economic and Financial Developments
Source | Coincu
Tether Funds Oil Deal in the Middle East
Tether completed a $45 million oil deal in the Middle East, buying 670,000 barrels of crude oil using USDT. This is a major step, as it shows how stablecoins like Tether’s USDT can be used in everyday global trade, possibly making it easier to use digital currencies in the real world.
China Announces $1.4 Trillion Debt Rescue Plan
China has announced a huge $1.4 trillion plan to help reduce its debt and boost its economy. This could affect the global crypto market by increasing cash flow, and it may lead to more investment in blockchain and crypto in Asia.
3. Corporate News in the Crypto Space
Source | J.P. Morgan
BlackRock Looks to Buy Stake in Millennium
BlackRock, one of the world’s largest investment companies, is looking to buy a piece of Millennium, a company that holds close to $2 billion in Bitcoin ETFs. If this deal goes through, it could boost BlackRock’s influence in the crypto market and might make digital assets more appealing to traditional investors.
JPMorgan’s New Blockchain for Instant Payments
JPMorgan announced a new way to make instant payments between the US dollar and euro using its Kinexys blockchain platform. This blockchain-based system, which uses JPM Coin, will make payments faster and more secure. JPMorgan may add British pound payments in the future, potentially setting a trend for other banks to follow.
4. Advances in Blockchain and DeFi
Source | Fintech Frontiers
Chainlink, UBS, and SWIFT Complete Pilot for Tokenized Funds
Chainlink, UBS, and SWIFT have finished a pilot project to test tokenized funds. This project is a big step forward for decentralized finance (DeFi), as it shows how using tokens for payments and investments could make international transactions faster and cheaper.
Singapore Pushes Tokenized Asset Programs
The Monetary Authority of Singapore (MAS), along with SWIFT and UBS, has been working on the Guardian project, which is focused on using tokenized finance. This could help create rules that allow traditional banks and institutions to safely use crypto and blockchain technology.
5. Crypto Investments and Large Transactions
Source | The Block
Mt. Gox Moves Bitcoin for Creditor Repayments
Mt. Gox, the now-defunct crypto exchange, recently moved billions of dollars’ worth of Bitcoin. This move could mean they’re planning to pay back creditors from its 2014 hack. If these Bitcoins are sold off, it could add a lot of Bitcoin into the market, causing potential price swings.
Michigan State Fund Invests $10 Million in Ethereum
The Michigan State Fund has invested $10 million in Ethereum as it looks to diversify. This investment shows that more institutions are getting interested in Ethereum, especially for its smart contract capabilities.
Reddit Sells a Large Part of Its Crypto Holdings
Reddit, the popular social media platform, has sold off a large portion of its crypto holdings. This move could signal a shift in how big companies are handling crypto investments, especially with the recent market volatility.
6. Regulatory Actions Around the World
Source | the-blockchain.com
Pakistan Moves to Recognize Digital Assets as Legal
The State Bank of Pakistan (SBP) is considering a proposal to allow digital assets as legal currency. If passed, this could lead to wider crypto adoption in South Asia.
Switzerland and Hong Kong Grant Bitcoin Licenses
Both Hong Kong and Switzerland recently issued more licenses for Bitcoin-based financial products. This is a positive sign that crypto is gaining acceptance in mainstream financial circles, especially in Asia and Europe.
7. Community Initiatives and New Programs
Source | Ton
TON Blockchain Launches $5 Million Fund
The TON blockchain announced a $5 million fund to support new projects on its network, aimed at attracting more users to decentralized apps (dApps) and growing its ecosystem.
Sheetz Expands Crypto Payments
Sheetz, a major convenience store chain, partnered with Flexa to accept Bitcoin, Ethereum, and stablecoins at over 750 locations. This makes it easier for customers to pay with crypto at these stores.
8. Future Market Trends and Predictions
Source | theowp.org
BRICS Updates on Reducing Dependence on the US Dollar
As the BRICS nations prepare for their 2024 summit, they have hinted at creating a system to reduce their dependence on the US dollar. This could have a big impact on how cryptocurrencies are used for international transactions, especially in emerging markets.
Conclusion
This week, crypto marched through the headlines, not just arriving but taking charge of the conversation! From a surge in Bitcoin’s price and Trump’s crypto-friendly promises to groundbreaking tech and international partnerships, it’s clear that crypto isn’t just playing a supporting role anymore; it’s rewriting the financial script.
As the crypto world continues to evolve, remember to dive in with care, DYOR (Do Your Own Research), and always stay informed. For more insights, visit our blog at millionero.com and explore the latest trends. And of course, this isn’t financial advice—but whether you’re trading spot or looking to the future, Millionero Exchange has you covered for all your crypto trading needs. Happy trading, and stay tuned to watch crypto keep taking new ground!