As a seasoned crypto investor with over a decade of experience in this volatile market, I’ve learned to navigate its highs and lows with a blend of caution and optimism. This week has been a rollercoaster ride, with Bitcoin reaching new heights only to plunge due to seemingly innocuous comments from the Federal Reserve Chair. It’s a reminder that in crypto, even the slightest words can cause significant fluctuations.
This week, Bitcoin (BTC) experienced a significant drop following its record-breaking high, primarily due to remarks made by Federal Reserve Chair Jerome Powell. He expressed worries about inflation and hinted that there might be merely two interest rate reductions in 2025, which negatively impacted the cryptocurrency’s value. Now, let’s explore some other key events that transpired.
Bitcoin (BTC)
On his inauguration day, newly elected President Donald Trump has expressed intentions to issue an executive order and establish a Bitcoin reserve. This move has sparked curiosity about its potential effects on Bitcoin’s ongoing four-year pattern of growth followed by decline.
Despite striking an agreement with the International Monetary Fund (IMF) that required modifications to El Salvador’s Bitcoin policy, the nation intends to persist in purchasing Bitcoin (BTC) for its strategic reserves. This decision was made even after securing a $1.4 billion loan deal with the IMF.
According to Chair Jerome Powell, it’s not within the Federal Reserve’s authority to purchase or hold Bitcoin, and they have no plans to participate in any governmental initiative aimed at establishing a strategic reserve of Bitcoin.
On Monday, Bitcoin (BTC) reached its peak ever, soaring to $106,500, fueling optimism among investors that the ongoing upward trend might persist. Yet, certain market signals suggest an extremely overvalued market, implying a potential correction is imminent.
As an analyst, I observed a notable drop of approximately 6% in Bitcoin (BTC) following comments by Federal Reserve Chair Jerome Powell post the FOMC meeting. In essence, Powell suggested that only two interest rate cuts would be implemented in 2025, which led to a downturn in the cryptocurrency market, causing it to dip into the red.
Technology
Ahead of expectations, Kraken unveiled its Layer2 blockchain, Ink, earlier than planned. Originally scheduled for a 2025 debut, the launch took place on Wednesday due to strong developer interest and community backing. The construction of Ink was done using Optimism’s OP Stack.
Business
In a recent purchase, the foremost Bitcoin mining firm, Riot Platforms, has acquired approximately 510 million dollars’ worth of Bitcoin, boosting their total Bitcoin holdings close to 1.7 billion dollars. This latest batch was bought between December 10 and 12.
Web3
In 2025, Binance is preparing the ground for advancements in blockchain technology using its brand-new Binance Alpha platform. This platform will highlight and display potential platforms that may significantly impact the future of the decentralized web (Web3).
In simple terms, the Web3 gaming platform known as Pixelverse has teamed up with top meme coins on the Base network. This collaboration will result in Pixelverse creating games that utilize meme coins on the Base Network. Furthermore, it will animate the popular meme coin characters within these games.
Io.net is now part of the Dell Technologies Partner Program. This collaboration will enable partners within Dell’s program to access Io.net’s scalable and cost-effective cloud services, expanding the worldwide cooperation between Io.net and their Web2 partners.
MetaMask web wallet now includes compatibility with the EOS Network, enabling a vast number of users to interact with EOS directly, all without requiring adjustments to their existing Web3 infrastructure.
Fraction AI is blazing a trail in data labeling innovation, merging the speed of artificial intelligence with human intuition. The firm has just completed a $6 million pre-seed funding round, headed by Symbolic and Spartan, alongside strategic investments from Illia Polosukhin (Near) and Sandeep Nailwal (Polygon).
What’s the process for turning your cryptocurrency assets into traditional money? You can exchange your cryptos for fiat currency through various methods, including digital trading platforms known as crypto exchanges, peer-to-peer platforms, or on-ramp/off-ramp services that facilitate transactions between cryptocurrencies and traditional banking systems.
Zoth and Singularity Finance are teaming up to debut a Decentralized Finance (DeFi) offering tailored for institutional investors. This new product is known as the Zoth Tokenized Liquid Notes Prime (ZTLN-P).
AI-driven meme token, TURBO, teams up with Aurora Labs and NEAR Protocol to debut its very own blockchain, TurboChain. This collaboration will also see the introduction of TurboSwap, a user-friendly platform designed for seamless trading of digital currencies.
Io.net has formed a strategic alliance with AI agent supplier Zerebro. This collaboration empowers Zerebro to utilize Io.net’s powerful GPU network for the deployment of their Ethereum validator functions.
OpenLedger is teaming up with the restaking platform Ether.Fi to strengthen its security and capacity for handling large amounts of data. This collaboration will enable OpenLedger to utilize Ether.fi’s massive $6 billion Total Value Locked (TVL) to improve network security and scalability.
Ape Terminal is ready for the grand unveiling of its latest project, named EARN’M. This dynamic platform boasts a connection to more than $1.7 billion in assets and serves over half a million active users.
Deploying smart contracts can be intricate and tough, even for seasoned programmers. Simplifying the process of deploying smart contracts is essential for fostering progress in decentralized artificial intelligence.
A distributed AI structure is crucial for ensuring that everyone has access to AI technology, fostering a broader range of individuals contributing to the field of artificial intelligence.
Security
In the year 2024, hackers from North Korea managed to swipe approximately $1.4 billion in cryptocurrency, nearly doubling their haul from the previous year. This means that roughly 61% of all global crypto theft can be attributed to these North Korean cyber-attacks, accumulating total losses of around $2.2 billion.
Regulation
Crypto.com has decided not to pursue its legal action against the Securities and Exchange Commission (SEC), following a meeting between their CEO, Kris Marszalek, and then President-elect Donald Trump.
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2024-12-23 16:03