The cryptocurrency markets are gearing up for an eventful start to the new year, with a series of significant developments that will impact sentiment and trading activity. From decisions made by the Federal Reserve to protocol updates and legal proceedings, investors need to closely monitor the following key events:
#1 Focus on FOMC Minutes Release (January 8)
The release of the Federal Open Market Committee (FOMC) meeting minutes from December on Wednesday will provide important insights into the Fed’s deliberations and potential clues about future rate decisions. These minutes will offer a glimpse into the Federal Reserve’s strategy for managing inflation while maintaining economic stability.
After intense discussions in late 2024, the Fed made three consecutive cuts to US interest rates but revised its forecast for the total number of cuts this year from four to two. Fed Chair Jerome Powell’s remark that the rate cuts were a “close call” underscores the significance of the upcoming minutes in understanding the central bank’s stance for 2025.
#2 THORChain’s Integration of Base
The cross-chain liquidity platform THORChain has confirmed that it will start supporting Base, the largest Layer 2 platform by volume, next week. This integration will facilitate more efficient ETH-BTC swaps by bypassing Ethereum’s mainnet congestion and providing new liquidity options through cbBTC. The community expects a notable increase in trading volume as users take advantage of cheaper ETH-BTC swaps and enhanced cross-chain capabilities.
#3 Jupiter’s Airdrop Checker
Jupiter, a prominent Solana-based decentralized exchange aggregator, is set to launch its airdrop eligibility checker this week as part of the “Jupuary” initiative. During January 2025 and 2026, Jupiter will distribute $700 million worth of JUP tokens to its user base to expand the community and promote participation in the decentralized autonomous organization. Additionally, Jupiter’s upcoming Castanbul conference will feature the live burning of 30% of the token’s supply.
#4 USUAL Fee Switch Activation (January 7)
In the realm of decentralized finance (DeFi), the USUAL ecosystem will activate its fee switch on January 7, 2025. This pivotal change will enable USUAL token holders who stake their tokens to receive a portion of the protocol’s revenue, incentivizing a more engaged user base.
#5 Do Kwon’s Second US Hearing (January 8)
Terra founder Do Kwon faces a critical stage in his legal battle with US authorities, with his second hearing scheduled for January 8. Kwon could face a maximum prison sentence of 130 years if convicted of the fraud charges outlined in the Department of Justice’s indictment. The case includes new allegations, such as intentional deception of investors, as prosecutors build their argument around five alleged fraud schemes.
#6 GMX Trading Fees Reduction (January 6)
Derivatives-focused exchange GMX has reduced its fees across all markets starting from January 6, 2025, to encourage higher trading volumes. The open and close fees have been lowered from 5 basis points (bps) and 7 bps to 4 bps and 6 bps, respectively. This fee reduction aims to promote balanced market participation and improve the overall user experience.
At the current time, the total cryptocurrency market cap stands at $3.45 trillion.
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