In the context of strong cryptocurrency market volatility, Bitcoin (BTC) has experienced a significant downturn, leading to liquidations of over $700 million in futures contracts related to major cryptocurrencies, particularly XRP and Dogecoin (DOGE), which have seen significant losses. BTC fell below $100,000 but quickly rebounded during Asian trading on Thursday morning after Federal Reserve Chairman Jerome Powell made comments about the possibility of interest rate cuts in 2025. Powell stated that the Fed is currently not allowed to own bitcoin, which contributed to a 3% drop in BTC and affected other major cryptocurrencies, with Chainlink (LINK) falling by as much as 10%.
These liquidations reflect market volatility, indicating the potential for panic selling. Some analysts suggest that Powell's statements could be a sign that the market has peaked, while others remain optimistic about the bullish trend in 2025, especially with possible policies from the Trump administration supporting crypto.
On another front, the percentage of Ethereum validators supporting the increase of the network's gas limit has risen to 10%, from just over 1% before December. This move comes in response to community members calling for an increase in the gas limit to facilitate more transactions per block and potentially reduce transaction fees. A website called “Pump The Gas,” created by Ethereum developer Eric Connor and former MakerDAO leader Mariano Conti, aims to raise the gas limit to 40 million and suggests that this could reduce fees by 15% to 33%.
However, there are also concerns about the risks of raising the gas limit too high, which could threaten the stability and decentralization of the network. Representatives from the Ethereum Foundation emphasize the need for a cautious approach, acknowledging the potential negative consequences of quickly increasing the gas limit.
