Headline
▌The Trump administration considers allowing the CFTC to lead the regulation of digital assets
According to FOX Business, the incoming Trump administration aims to expand the powers of the Commodity Futures Trading Commission (CFTC), granting it significant regulatory authority over the digital asset market.
According to sources familiar with Trump's team's thoughts, as Trump assumes office and the influence of the crypto industry in Republican politics grows, the CFTC's responsibilities may soon expand to regulate the crypto spot market (such as Bitcoin and Ethereum) viewed as commodities and the exchanges facilitating their trading. Key figures in Trump's team believe that regulatory easing is needed to stimulate innovation in the crypto business, including potentially transformative blockchain technologies that could eliminate expensive intermediaries in commercial transactions.
Former CFTC Chairman Chris Giancarlo told FOX Business, "With sufficient funding and the right leadership, I believe the CFTC can start regulating digital commodities on the first day of Trump's presidency."
▌US court rules sanctions against Tornado Cash smart contract unlawful
The Fifth Circuit Court of Appeals in the United States ruled that the Treasury's sanctions against Tornado Cash's smart contract were illegal, stating that the Treasury exceeded its authority in sanctioning immutable smart contracts deployed by Tornado Cash. The immutable smart contracts deployed by Tornado Cash developers were unauthorized because they were not the property of foreign individuals or entities.
Market
As of the time of writing, according to Coingecko data:
BTC recent transaction price is $92,077.18, with an intraday change of -1.3%;
The recent transaction price for ETH is $3,323.72, with an intraday change of -2.7%;
BNB recent transaction price is $613.16, with an intraday change of -3.7%;
The recent transaction price for SOL is $230.84, with an intraday change of -1.7%;
DOGE recent transaction price is $0.387, with an intraday change of -2.0%;
XPR recent transaction price is $1.40, with an intraday change of -1.4%.
Policy
▌Senator Joni Ernst writes to the US Office of Government Efficiency proposing a $2 trillion reduction in government spending
Iowa Senator Joni Ernst recently wrote to Elon Musk and Vivek Ramaswamy, leaders of the US Office of Government Efficiency, proposing budget cuts. Ernst's suggestions include addressing unused office space and uncommitted COVID-19 relief spending, with proposed cuts totaling over $2 trillion.
Earlier reports indicated that Iowa Senator and Republican Joni Ernst will lead the US Senate Government Efficiency Committee (DOGE) caucus.
▌A Brazilian congressman formally proposes the establishment of a national strategic Bitcoin reserve
A Brazilian congressman has formally proposed the establishment of a national strategic Bitcoin reserve - the Bitcoin Sovereign Strategic Reserve. The plan, known as the "Bitcoin Sovereign Strategic Reserve" (Reserva Estratégica Soberana de Bitcoins, abbreviated as RESBit), aims to diversify the national treasury. According to Brazilian media platform Portal do Bitcoin, Congressman Eros Biondini submitted this proposal on Monday.
▌NYSE submits 19b-4 and S-1 filings for Bitwise BTC & ETH ETF to the SEC
According to Nate Geraci, president of The ETF Store, the NYSE has submitted 19b-4 and S-1 filings to the SEC to list the Bitwise Bitcoin & Ether ETF. This product will hold both spot BTC and ETH, weighted by market capitalization.
Bitwise co-founder Matt Hougan stated, "Bitcoin and Ethereum are like gold and tech stocks; they are not competitors." He believes this ETF will be widely welcomed by investors.
Blockchain applications
▌Kraken will close its NFT market on February 27, 2025
Cryptocurrency exchange Kraken announces it will close its NFT market on February 27, 2025. After November 27, 2024, users will no longer be able to list, bid, or sell items on Kraken's NFT market; they can only withdraw assets.
Kraken stated, "We have decided to close our NFT market in order to shift more resources to new products and services, including unpublished plans under development. Customers have been informed of these changes, and our team will assist them in transferring their NFTs to their Kraken wallets or to their chosen self-custody wallets."
Earlier reports indicated that Kraken first revealed plans to launch its own NFT market in December 2021 and went live with a beta version in November 2022.
▌Galaxy: The number of Bitcoin L2 projects has increased about 7 times since 2021, from 10 to 75
Galaxy disclosed data on the X platform, stating that since 2021, the number of Bitcoin L2 projects has increased approximately 7 times, from 10 to 75. Since 2018, Bitcoin L2 has received $447 million in investment, and this trend is changing the utility of BTC.
In addition, Bitcoin L2 projects have achieved unprecedented growth, securing 36% of venture capital funding in 2024 alone. It is expected that by 2030, over $47 billion worth of BTC could access L2, supporting DeFi, fungible tokens, payments, and more.
Cryptocurrency
▌Standard Chartered analyst: The short-term bottom for BTC is in the range of $85,000 to $88,700
Geoff Kendrick, Standard Chartered's global head of digital assets research, attributes recent market turbulence (including the decline in Bitcoin and the rise in US long-term treasuries) to the decline in the term premium of US treasuries. The term premium is the extra yield investors require for holding long-term bonds instead of rolling over short-term bonds. As Bitcoin is often seen as a hedge against traditional financial market instability, increased confidence in US treasuries may temporarily weaken Bitcoin's appeal, leading to a price drop.
Kendrick stated, "There are no signs of a slowdown in MicroStrategy's purchasing, and they are unlikely to sell, but since the election, the average purchase price for ETFs and MSTR has been $88,700, which could become the short-term bottom, and Bitcoin may consolidate in the range of $85,000 to $88,700 before resuming its upward trajectory."
▌Nasdaq ISE excludes Bitcoin trust products from FLEX options trading
Nasdaq ISE LLC submitted a rule change proposal to exclude Bitcoin-related trust products such as Fidelity Wise Origin Bitcoin Fund, ARK 21Shares Bitcoin ETF, and Grayscale Bitcoin Trust from FLEX options trading. The proposal has been approved by the SEC and is effective immediately, aimed at ensuring that options positions and exercise limits are consistent with existing rules. The SEC also solicited public comments on the proposal, which can be submitted in various ways.
▌Cipher Mining announces acquisition of a new mining site in Texas, signs a 100 MW facility expansion agreement
Cipher Mining Inc. (NASDAQ:CIFR) announced that it has completed a transaction to acquire a new power plant called Stingray in West Texas for $4.1 million in cash and an initial floating fee of $1.50 per megawatt-hour for the first five years after the plant goes online. The 250-acre site has been approved and a facility expansion agreement of up to 100 MW has been signed.
Cipher CEO Tyler Page stated, "With this site coming online, we now have a data center planned for 2026 that will complement our other new data centers planned for 2025 and 2027." With the addition of this new site, Cipher's active portfolio and development pipeline will total 2.6 GW across 11 sites.
▌In November, pump.fun accounted for over 62% of the trading volume on Solana's DEX
According to Dune data, pump.fun accounted for 62.3% of the trading volume on Solana's decentralized exchanges (DEX) in November, while its trading volume share was 42.3%. Over the past three months, the platform has contributed over 60% of Solana's DEX trading volume on average.
▌Grayscale opens private placements for 17 token trusts including SOL, SUI, and XRP to qualified investors
Grayscale announced on the X platform that it has now opened private placements for 17 token trusts to eligible qualified investors, including: $AAVE, $AVAX, $BAT, $BCH, $TAO, $LINK, $FIL, $LTC, $LPT, $MKR, $NEAR, $SOL, $STX, $XLM, $SUI, $XRP, $ZEC.
According to official disclosure, Grayscale will periodically reopen private placements to qualified investors based on net asset value (NAV).
Important economic dynamics
▌The probability of the Federal Reserve cutting rates by 25 basis points in December is 62.8%
According to CME's "Fed Watch," the probability that the Federal Reserve will maintain current rates unchanged by December is 37.2%, with a cumulative probability of a 25 basis point rate cut at 62.8%. The probability of maintaining current rates unchanged by January next year is 28.4%, with a cumulative probability of a 25 basis point cut at 56.8% and a cumulative probability of a 50 basis point cut at 14.8%.
▌Federal Reserve spokesperson: The Federal Reserve meeting minutes suggest that if inflation stagnates, rate cuts will become cautious
Federal Reserve spokesperson Nick Timiraos wrote that Fed officials discussed whether to slow or pause rate cuts if progress in reducing inflation stalls. According to the Federal Reserve meeting minutes released on Tuesday, officials believe that if economic performance meets their expectations, i.e., inflation continues to decline steadily, then "gradually moving toward a more neutral interest rate setting may be appropriate." The minutes indicate that all 19 officials involved in the discussion agreed to lower the Fed's benchmark short-term rate by 25 basis points. Some policymakers believe that the risks of a more pronounced slowdown in the labor market or economy have diminished since the September meeting. Many of them also expressed greater uncertainty about where interest rates should be set for an economy that neither needs stimulus nor monetary restraint. The minutes stated that these considerations "make it appropriate to gradually reduce policy constraints."
▌The Federal Reserve considers lowering the reverse repo rate by 5 basis points as a technical adjustment
The Federal Reserve meeting minutes indicate that the Fed is considering lowering the reverse repo rate by 5 basis points as a technical adjustment. Some attendees suggested that it might be appropriate to consider resetting the overnight reverse repo rate to the lower bound of the federal funds rate target range in the future.
Golden Encyclopedia
▌What is an airdrop?
Airdrops are akin to surprise gifts in cryptocurrency. Imagine opening a box and finding coins inside! This is similar to receiving announcements about free tokens from new blockchain projects. Crypto airdrops involve the free distribution of digital assets to users' wallets or in exchange for completing simple tasks, such as following the project on social media or joining their online community.
In the cryptocurrency ecosystem, airdrops play a crucial role. New projects use airdrops as a marketing strategy to increase visibility and build a user base. They are like free samples in a supermarket, enticing users to try new products. From the user's perspective, airdrops provide an opportunity to acquire new cryptocurrencies with minimal effort and the potential for significant returns. These tokens are not just free giveaways; they are also a way to participate in the evolving digital economy.
Disclaimer: Golden Finance, as a blockchain information platform, provides articles for informational reference only and does not constitute actual investment advice. Please establish the correct investment philosophy and be sure to raise risk awareness.
