Headlines
▌The Trump administration considers letting the CFTC lead digital asset regulation
According to FOX Business, the incoming Trump administration hopes to expand the powers of the Commodity Futures Trading Commission (CFTC), granting it significant regulatory authority over a large portion of the digital asset market.
According to sources familiar with the Trump team's thoughts, with Trump assuming office and the increasing influence of the crypto industry in Republican politics, the CFTC's responsibilities may soon expand to regulate the crypto spot market (such as Bitcoin and Ethereum) that is seen as commodities, as well as the exchanges that facilitate their trading. Key individuals in Trump's team believe that regulatory relief is needed to stimulate innovation in the crypto business, including potentially transformative blockchain technology that can eliminate expensive intermediaries in business transactions.
Former CFTC Chairman Chris Giancarlo told FOX Business: "With sufficient funding and the right leadership, I believe the CFTC can begin regulating digital commodities as soon as Trump takes office."
▌U.S. court rules that sanctions against Tornado Cash smart contracts are unlawful.
The U.S. Fifth Circuit Court of Appeals ruled that the Treasury's sanctions against Tornado Cash smart contracts 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 overstepping their jurisdiction as they were not the property of foreign individuals or entities.
Market
As of the time of publication, according to Coingecko data:
BTC's recent transaction price is $92,077.18, with a daily fluctuation of -1.3%;
ETH's recent transaction price is $3,323.72, with a daily fluctuation of -2.7%;
BNB's recent transaction price is $613.16, with a daily fluctuation of -3.7%;
SOL's recent transaction price is $230.84, with a daily fluctuation of -1.7%;
DOGE's recent transaction price is 0.387 yuan, with a daily fluctuation of -2.0%;
XPR's recent transaction price is $1.40, with a daily fluctuation of -1.4%.
Policy
▌Senator Joni Ernst writes to the U.S. Government Efficiency Department proposing a plan to cut government spending by $2 trillion.
Iowa Senator Joni Ernst recently wrote to leaders of the U.S. Government Efficiency Department, including Elon Musk and Vivek Ramaswamy, proposing ideas for budget cuts. Ernst's suggestions included addressing idle office space and uncommitted COVID-19 relief spending, with proposed total cuts exceeding $2 trillion.
According to previous reports, Iowa Senator and Republican Joni Ernst will lead the U.S. Senate Government Efficiency Department (DOGE) caucus.
▌A Brazilian congressman has officially proposed the establishment of a national strategic Bitcoin reserve
A Brazilian congressman has officially proposed the establishment of a national strategic Bitcoin reserve—the Bitcoin Sovereign Strategic Reserve. This plan, known as the "Bitcoin Sovereign Strategic Reserve" (Reserva Estratégica Soberana de Bitcoins, abbreviated as RESBit), aims to diversify the national treasury. According to the Brazilian media platform Portal do Bitcoin, Congressman Eros Biondini submitted this proposal on Monday.
▌The New York Stock Exchange has submitted 19b-4 and S-1 filings to the SEC regarding Bitwise BTC & ETH ETF.
According to Nate Geraci, president of The ETF Store, on the X platform, the New York Stock Exchange 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 not competitors, just like gold and tech stocks." He believes this ETF will be widely welcomed by investors.
Blockchain Applications
▌Kraken will shut down its NFT market on February 27, 2025
Crypto exchange Kraken announced it will shut down its NFT market on February 27, 2025. After November 27, 2024, users will no longer be able to list, bid on, or sell items on Kraken's NFT market; they can only withdraw assets.
Kraken stated: "We have decided to close our NFT market to redirect more resources to new products and services, including undisclosed plans currently in development. Customers have been informed of these changes, and our team will support them in transferring their NFTs to their Kraken wallet or a self-custody wallet of their choice."
According to previous reports, Kraken first revealed plans to launch its own NFT market in December 2021 and launched a beta version in November 2022.
▌Galaxy: The number of Bitcoin L2 projects has increased approximately sevenfold since 2021, from 10 to 75
Galaxy disclosed data on the X platform that since 2021, the number of Bitcoin L2 projects has increased approximately sevenfold, from 10 to 75. Since 2018, Bitcoin L2 has received $447 million in investments, a trend that is changing the utility of BTC.
Additionally, Bitcoin L2 projects have experienced unprecedented growth, obtaining 36% of venture capital funding just in 2024. It is expected that by 2030, BTC worth over $47 billion can 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, head of global digital asset research at Standard Chartered Bank, attributed recent market turmoil (including Bitcoin's decline and the rise in U.S. long-term Treasury bonds) to the decrease in the term premium of U.S. Treasuries. The term premium is the extra yield that investors require for holding long-term bonds instead of rolling over short-term bonds. Since Bitcoin is often seen as a hedge against traditional financial market instability, increased confidence in U.S. Treasuries may weaken Bitcoin's appeal in the short term, leading to a drop in its price.
Kendrick stated: "MicroStrategy's purchases show no signs of slowing down, and they are unlikely to sell, but since the election, the average purchase price for the ETF and MSTR has been $88,700, which may become a short-term bottom. Bitcoin may consolidate in the range of $85,000 to $88,700 before resuming an 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, aiming to ensure that options positions and exercise limits are consistent with existing rules. The SEC is also soliciting public comments on this proposal, which can be submitted in various ways.
▌Cipher Mining announces the acquisition of a new mining site in Texas and signs a 100 megawatt facility expansion agreement.
Cipher Mining Inc. (NASDAQ:CIFR) announced that it has completed a transaction to acquire a new power plant named Stingray in West Texas for $4.1 million in cash and an initial floating fee of $1.5 per megawatt-hour for the first five years after the plant is energized. The 250-acre site has been approved and has signed an agreement for facility expansion of up to 100 megawatts.
Cipher CEO Tyler Page said: "With the addition of this site, we now have a data center planned to go live in 2026, which 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 in the Solana ecosystem DEX
According to Dune data, pump.fun accounted for 62.3% of the trading volume in the Solana ecosystem DEX in November, while the trading volume share was 42.3%. Over the past three months, this platform has averaged over 60% of the DEX trading volume in Solana.
▌Grayscale opens private placement for 17 token trust funds to qualified investors, including SOL, SUI, XRP, and others.
Grayscale stated on the X platform that it has now opened private placements for 17 token trust funds 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 for qualified investors based on net asset value (NAV).
Important economic dynamics
▌The probability of a 25 basis point rate cut by the Federal Reserve in December is 62.8%
According to CME's 'Fed Watch', the probability that the Fed will maintain current rates unchanged by December is 37.2%, while the cumulative probability of a 25 basis point rate cut is 62.8%. The probability of maintaining current rates unchanged by January next year is 28.4%, while the cumulative probability of a 25 basis point rate cut is 56.8%, and the cumulative probability of a 50 basis point rate cut is 14.8%.
▌Federal Reserve mouthpiece: Federal Reserve minutes suggest that if inflation stagnates, rate cuts will become cautious
"Federal Reserve mouthpiece" Nick Timiraos wrote that Fed officials discussed the possibility of slowing or pausing rate cuts if progress in lowering inflation stagnates during a meeting earlier this month. According to the Federal Reserve minutes released on Tuesday, officials believe that if economic performance aligns with their expectations, meaning inflation will continue to decline steadily, then "gradually moving towards a more neutral interest rate setting may be appropriate." The minutes show that all 19 officials participating in the discussion agreed to lower the Fed's benchmark short-term interest rate by 25 basis points. Some policymakers believe that since the September meeting, the risks of a more pronounced slowdown in the job market or economy have diminished. Many of them also expressed greater uncertainty about where interest rates should be set for an economy that does not need stimulus or monetary restraint. The minutes state that these considerations "make it appropriate to gradually reduce policy constraints."
▌The Federal Reserve is considering a technical adjustment to lower the reverse repo rate by 5 basis points.
The Federal Reserve meeting minutes indicate that the Fed is considering a technical adjustment to lower the reverse repo rate by 5 basis points. Some participants suggested that it may be appropriate to consider resetting the overnight reverse repo rate to the bottom of the federal funds rate target range in the future.
Jinse 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 or coins from new blockchain projects. Crypto airdrops involve the free distribution of digital assets to users' wallets or as an exchange for completing simple tasks, such as following a project on social media or joining their online community.
In the crypto ecosystem, airdrops play a crucial role. New projects use airdrops as a marketing strategy to increase visibility and build user bases. They are like free samples in a supermarket, enticing users to try new products. From the user's perspective, airdrops offer an opportunity to gain new cryptocurrencies with minimal effort and the potential for significant rewards. These tokens are not just free giveaways; they are a way to participate in the evolving digital economy.
Disclaimer: Jinse Finance, as a blockchain information platform, publishes articles for informational reference only and does not constitute actual investment advice. Everyone should establish a correct investment philosophy and be sure to improve risk awareness.
