Market Recap: Markets in Turmoil as Rate Cuts & Tariffs Shake Investors
Interest Rates & Inflation Worries
- Market Recap: Federal Reserve member Neel Kashkari stated that interest rates could be lowered before the end of the year if inflation keeps going down. However, traders are now betting on only one rate cut instead of three this year.
- The unexpected jobs report showed 143,000 new jobs instead of the expected 169,000, while the unemployment rate was 4% (better than the expected 4.1%). Wages, however, rose faster than expected at 0.5% (forecast was 0.3%).
Trump’s Trade Tariff Plans
- US President Donald Trump announced plans to impose new tariffs to match those of other countries.
- China responded with new tariffs on U.S. oil, coal, and agricultural equipment.
- Trump delayed tariffs for 30 days with Mexico and Canada after a sharp market reaction.
Bitcoin’s Wild Ride: Hits 102K, Then Crashes!
- Bitcoin briefly touched 102K, only to drop sharply after news of interest rate uncertainty and Trump’s trade moves.
- More than 2.1 billion USDT in liquidations occurred in just 24 hours—more than during the COVID crash and the FTX crisis!
- Bitcoin recovered after Trump’s tariff delay announcement.
- BTC dominance surged past 60%, signaling investors moving away from altcoins.
Crypto Regulations & Institutional Adoption
New Crypto Laws & Regulations
- Missouri proposed a Bitcoin reserve fund for state investments and requires government institutions to accept crypto payments.
- Ohio also proposed a Bitcoin reserve fund and a law mandating agencies to accept Bitcoin.
- FDIC is reviewing its crypto guidelines, which could let banks engage more with digital assets.
Source | FDCI Website
- The U.S. SEC formed a crypto task force to address digital asset policies.
- The SEC is reviewing Solana, XRP, and Litecoin ETF applications.
Source | Polymarket
Major Adoption Moves
- David Sacks, Trump’s crypto advisor, is evaluating a U.S. Bitcoin reserve.
- New Mexico proposed investing 5% of public funds into Bitcoin.
- Trump signed an executive order to create a U.S. Sovereign Wealth Fund, sparking speculation on Bitcoin investments.
- Ethereum network validators debated increasing gas limits, which could lower fees but might also affect network stability.
- Stablecoin transactions exceeded Visa & Mastercard combined, processing $15.6 trillion in 2024!
Source | Arkinvest
Major Institutional & Corporate Crypto Moves
Big Business in Bitcoin & Crypto
- MicroStrategy changed its name to ‘Strategy’ and stopped weekly Bitcoin buys.
- Trump’s World Liberty Finance (WLFI) bought 86,000 ETH, now holding $422 million in Ethereum.
- Semler Scientific (SMLR) bought 871 Bitcoin worth 88.5M USDT, bringing total holdings to 3,192 BTC.
- BlackRock is planning a Bitcoin ETP in Europe, its first outside North America.
- Grayscale filed to convert its Litecoin Trust to a spot ETF.
- Tether partnered with UAE real estate platform to allow USDT transactions in real estate.
Tech & AI: The Billion-Dollar Race!
- Google announced a $75 billion AI investment.
- Meta followed with a $65 billion AI expansion plan.
- Near Protocol launched a $20M AI Agent Fund to invest in AI-powered blockchain applications.
- 0G announced an $88M ecosystem fund to support AI-driven decentralized finance (DeFAI).
Crypto Drama & Legal Battles
- Pump.fun received a shutdown order for misusing trademarks, leading to the removal of over 200 meme coins.
- FTX creditors in the Bahamas will begin receiving repayments on February 18.
- Trump’s crypto-focused financial firm WLFI transferred $307M in assets to Coinbase Prime.
DeFi & Blockchain Developments
Layer 1s & DeFi Expansions
- Ondo Finance launched ‘Ondo Global Markets’ to tokenize real-world assets (RWAs).
- Ondo Finance also introduced ‘Ondo Nexus’, an instant liquidity platform for tokenized treasuries.
- Lido announced Lido V3 is coming soon.
Crypto Celebrities & Market Sentiment
- Eric Trump tweeted that it’s a ‘great time’ to buy ETH, fueling speculation on Ethereum’s next move.
Source | X @EricTrump
- Michael Saylor’s strategy is expected to add $12.75 billion to his company’s balance sheet under new accounting rules.
- David Sacks hinted at Bitcoin playing a major role in Trump’s financial strategy.
- Bitcoin whales moved 50 BTC (5M USDT) mined 15 years ago, earning 99,999,900% in profit!
Source | Arkham
Looking Ahead: What’s Next for Crypto?
- Will the U.S. Bitcoin reserve become a reality?
- Can Bitcoin hold above $100K, or will more market shocks send it tumbling?
- Will Ethereum gas limits increase, and how will it impact the network?
- Will more states adopt Bitcoin for government use?
- What will happen next with the SEC’s stance on crypto ETFs?
- How will Trump’s tariff war affect global markets and crypto sentiment?
The crypto market is more exciting than ever. Expect big moves ahead!
🚨 This article is not financial advice. Always do your own research (DYOR)! You can start by checking out blog.millionero.com. When you’re ready, trade spot and futures securely on Millionero!