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  • How the Fed’s latest decision could affect crypto markets in 2025

    How the Fed’s latest decision could affect crypto markets in 2025

    Bitcoin may have kicked off 2025 with a rebound back to $100,000, but since the release of the U.S. Federal Reserve’s December 2024 Federal Open Market Committee meeting on Jan. 8, the BTC/USD exchange rate dropped to as low as $91,220.84.

    Bitcoin has stabilized at around $95,000 since then, but concerns run high whether further news about the future direction of interest rates and monetary policy will result in an additional negative impact to the performance of Bitcoin and other cryptocurrencies.

    As cryptocurrencies have entered the financial mainstream, they have become increasingly sensitive to policy changes from the Federal Reserve. With this in mind, let’s take a closer look at the latest news from the Fed, and see what it could mean for the performance of both Bitcoins and altcoins in the months ahead.

    Why Cryptos Fell on The Latest Fed News

    As revealed in the aforementioned Fed meeting minutes, the central bank once again cut interest rates by 0.25%, or 25 basis points. This was in line with expectations. However, while the latest rate cuts arrived as expected, other takeaways from the meeting minutes caught investors off-guard.

    Namely, the Fed’s signaling of its plans to reduce the number of 25-basis point rate cuts in 2025. Before the meeting minutes hit the street, the market was still expecting four such cuts throughout the year. The latest remarks from Fed officials regarding quantitative tightening also suggested that the “Fed pivot” this year will not be as rapid of a shift from hawkish to dovish as previously anticipated.

    Taking this into account, it’s not completely surprising that Bitcoin has once again encountered negative volatility. Nor is it surprising that more volatile altcoins, like Ethereum, Solana, and Dogecoin, have all experienced double-digit declines over the past week. As “risk-on” assets, cryptocurrencies, especially altcoins, perform better during times of accommodative fiscal policy.

    Yet while the Fed may be not turning as dovish as previously expected, and is in fact continuing to engage in monetary tightening, the impact of these policy decisions on cryptocurrency prices in 2025 may not be as dire as it seems at first glance.

    What This Means for Bitcoin and Altcoin Prices in 2025

    Although the cryptocurrency market reacted negatively to the Fed’s current policy gameplan, said plans could still result in further upside for Bitcoin and other cryptocurrencies. For one, the planned implementation of fewer 25 basis-point rates still means a further loosening of monetary policy, helping to justify additional upside for this “risk-on” asset class.

    Second, with regards to Bitcoin, other positive factors are at play that could drive further upside for the largest cryptocurrency by market capitalization. These include increased institutional and retail investor allocation, as well as the specter of a more favorable crypto regulatory environment from the incoming Trump administration.

    Binance CEO Richard Teng commented on what we can expect in the crypto industry in 2025, “We expect to see development across all aspects. Crypto regulation saw great growth across the world in 2024 and we expect to see more in 2025. Given the recent U.S. presidential election and expected crypto regulation from its new government, we expect to see other countries follow the lead from the U.S. and enact more legislation across the world.”

    Teng continues, “In terms of institutional interest, financial giants like BlackRock and Fidelity entered the crypto business in 2024, and we expect to see more new players next year. More companies are learning about crypto and integrating crypto features like tokenization into their business. This is a trend that has grown for years and we expect to see more development in.”

    Admittedly, the recently-announced changes to the Fed’s rate cut plans could still negatively impact the performance of altcoins in the short-term. Altcoins are much more sensitive to changes in fiscal policy. Nevertheless, if a bull market continues in Bitcoin, chances are it will spill over into the altcoin space as well. Investors profiting from a continued run up in the price of Bitcoin could cycle their gains into Ethereum, XRP, Solana, and other major and emerging altcoins.

    The Bottom Line

    Over a longer timeframe, the Fed’s decision to more cautiously lower interest rates and loosen fiscal policy may do little to threaten the long-term bull case for cryptocurrencies. Due to a variety of trends, including the proliferation of exchange-traded cryptocurrency investment products, institutional and retail capital inflows into cryptocurrencies are poised to continue.

    Of course, nothing’s for certain. For instance, following the latest jobs report, there is growing doubt whether the Fed will further walk back its 2025 rate cut plans. Even if the Fed sticks to its current plan, this asset class is likely to stay highly volatile. Caution and patience remain key.

    Nevertheless, taking into account not just the Fed news,but the other positive trends at play as well, the opportunity for long-term price appreciation with Bitcoin and other cryptocurrencies is still on the table.

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  • Whales accumulate more Bitcoin after latest pullback

    Whales accumulate more Bitcoin after latest pullback

    • Whales scoop Bitcoin as pullback dents bulls’ momentum
    • Bitcoin price touched lows of $65,911 as US government transferred its Silk Road BTC

    Bitcoin pulled back from its intraday highs around $70k on Monday to wipe gains seen after former US President Donald Trump highlighted the recently concluded Bitcoin 2024 conference.

    But the upside move built around Trump’s speech faded abruptly after the US government moved $2 billion in BTC from the Silk Road. The news spooked investors, crashing the crypto market.

    The price of Bitcoin fell more than 4% to lows of $65, 911 across major crypto exchanges, pushing into the negative territory on the weekly chart and cutting 30-day gains to just 8.8% at the time of writing.

    Gemini co-founder Tyler Winklevoss, commenting on the BTC transfer, noted that it came only two days after Trump “pledged to never sell any of the US government’s bitcoin.” It’s a view that many across the crypto community hold, with the move seen as a continuation of the anti-crypto stance from the Biden-Harris Administration.

    Whales accumulating Bitcoin

    While BTC hovers below the $67k level, large investors are using the low prices as an opportunity to add to their portfolios. These whales have aggressively scooped Bitcoin since Monday’s dip, market intelligence account Lookonchain shared on X.

    One such whale, “12QVsf”, reportedly withdrew 4,500 BTC worth over $302 million from Binance. The whale has also been linked to three other wallets that moved 1,400 BTC worth $94 million from crypto exchange Bitfinex on Tuesday morning.

    The wallets also withdrew a total of 2,510 BTCworth over $163 million from Bitfinex on June 20.

    On-chain insights platform Spot On Chain also highlighted this whale accumulation.

    Bitcoin reached a peak of $73k in March and analysts are bullish the market will see a new bull run that could take BTC to above $100k in coming months.

    The price of Bitcoin hovered around $66,527 at the time of writing.

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  • Shiba Memu’s presale and SEC’s latest Bitcoin ETF news

    Shiba Memu’s presale and SEC’s latest Bitcoin ETF news

    • Shiba Memu on the cusp of market debut as SEC sets deadline for ETF amendments.
    • The SHMU presale ends on December 30, 2023, with debut on crypto exchanges to follow.
    • The SEC has asked spot Bitcoin ETF applicants to submit final changes by December 29, 2023.

    The crypto market is eyeing what could be a 2024 bonanza, with bullish sentiment around the SEC’s potential approval for a spot Bitcoin ETF the leading catalyst. Alongside a few attractively poised altcoins is Shiba Memu, a presale token that’s on the cusp of its market debut.

    Here’s a highlight of the latest crypto news likely to be key this week. Also assess Shiba Memu presale, now down to just three days.

    SEC sets Dec. 29 deadline for spot Bitcoin ETF amendments

    The anticipation for a first spot Bitcoin exchange-traded fund (ETF) for the US market is set to rise further this week. This is after it emerged that the Securities and Exchange Commission (SEC) has asked all applicants seeking to list the ETF to file amendments to their filings by December 29, 2023.

    SEC’s reported deadline for applicants comes after the regulator held multiple meetings with various firms looking to offer spot Bitcoin ETFs last week.

    At least two companies were reportedly asked to submit final changes to their appplications by the stated date. Participants during the last meeting with the SEC were told that any applicant that fails to file final amendements by this Friday should not expect to be among the “first wave” of potential approvals.

    While the crypto market buzz has cooled amid the holiday trading lull and as Mt.Gox reportedly begins to repay some of its creditors, the overall outlook is that Bitcoin is poised for a prolonged dose of upside pressure.

    The altcoin market is similarly poised, and investors out to unlock the next bull cycle gem are betting big on low cap bargain tokens.

    Shiba Memu: On the cusp of presale success

    Meme tokens have exploded onto the scene in recent months, with resurgences for Dogecoin and Shiba Inu paled by the explosive surge for Solana-based Bonk (BONK). But with the market in the mood for a longer bull rally catalysed by Bitcoin ETFs and halving, investors keen on tapping into the potential of Shiba Memu are flocking to its presale.

    The project, which outlines a new artificial intelligence powered meme coin with real-world utility, is now just three days to the presale close. As of December 27, 2023, investors have allocated over $4.8 million into SHMU to support the project’s development.

    After the presale, Shiba Memu is expected to make its market debut on top crypto exchanges, likely entering the market during the forecast upward trajectory in Q1, 2024. The unique AI-powered marketing dashboard, staking program and integration with decentralised applications (dApps) is also outlined on the roadmap.

    SHMU is currently priced at $0.05028 and could be one of the top meme coins to buy given its potential to redefine how meme-inspired crypto projects gain long term traction. Rather than rely on hype, Shiba Memu will be a self-sufficient marketing machine, capable of challenging the top tokens such as Dogecoin and Shiba Inu.

    To check out Shiba Memu’s features and tokenomics, read their whitepaper. You can also join the presale.

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  • MicroStrategy’s latest BTC purchase sets Bitcoin price in motion

    MicroStrategy’s latest BTC purchase sets Bitcoin price in motion

    • Bitcoin is defending the $26k after the recent MicroStrategy’s latest BTC purchase.
    • Concerns over the US dollar’s impact on BTC may be overstated by investors.
    • Coinbase holds about 5% of the total bitcoin in circulation.

    MicroStrategy’s recent acquisition of Bitcoin worth nearly $150 million has made waves in the cryptocurrency market, causing a notable shift in Bitcoin’s price dynamics.

    The move was a demonstration of MicroStrategy, a prominent business intelligence firm led by CEO Michael Saylor, of its strong commitment to Bitcoin. The recent Bitcoin purchase sent ripples throughout the cryptocurrency world.

    A boost to Bitcoin price

    Before MircoStrategy’s BTC acquisition announcement, Bitcoin had briefly dipped below the $26,000 level, around which it has been hovering for a week. However, as soon as news of the purchase became public, Bitcoin price saw a significant upward movement, gaining several hundred dollars in value and hitting a daily high of $26,421.51.

    In addition to MicroStrategy’s purchase, China’s Shanghai People’s Court also recently made a significant announcement recognizing Bitcoin as a distinctive digital currency, despite the country’s established ban on cryptocurrencies. This recognition has garnered attention, notably due to Justin Sun, the founder of Tron, drawing attention to the Shanghai No. 2 Intermediate People’s Court’s recent publication, which outlines key characteristics of Bitcoin.

    The Shanghai court clearly distinguished Bitcoin from virtual counterparts like Q coins, emphasizing its unique attributes. These include Bitcoin’s scarcity, widespread global acceptance, and intrinsic monetary qualities. This acknowledgement represents a notable departure from China’s traditional classification of cryptocurrencies primarily as speculative investments.

    The recognition by the Shanghai People’s Court marks a shift in how Bitcoin is officially perceived within the Chinese legal system. While the ban on cryptocurrencies remains in place in China, this recognition of Bitcoin’s distinct nature as a digital currency signifies a nuanced perspective on its role and significance within the broader financial landscape. It highlights the evolving discourse surrounding cryptocurrencies in China and their potential utility beyond speculation.

    Bitcoin’s resilience

    Despite the volatility in recent weeks, Bitcoin has shown resilience. Last week, it reached a 20-day high at $27,500, only to experience a drop to $26,400 by the end of the business week, partly influenced by the US Federal Reserve’s latest meeting.

    The weekend remained relatively stable, with Bitcoin maintaining a level of around $26,600. However, Monday started on a bearish note, leading to a temporary dip below $26,000.

    MicroStrategy’s announcement acted as a catalyst, helping Bitcoin recover from this low point. While MicroStrategy’s continuous accumulation of Bitcoin strengthens the company’s position as a major institutional investor in the cryptocurrency, it also underscores the growing acceptance of Bitcoin as a valuable digital asset.

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  • Shiba Inu [SHIB]: Why investors should closely watch the latest burn reaction

    Shiba Inu [SHIB]: Why investors should closely watch the latest burn reaction

    Contrary to its recent trend, Shiba Inu’s [SHIB] burn rate spiked incredibly by 1858% in the last 24 hours. According to Shibburn‘s data, the hike pushed the total SHIB burned within the period to a figure of 45,165,582 SHIB. In doing so, the total SHIB burned since initial supply is now 410.38 trillion.

    Here’s AMBCrypto’s Price Prediction for Shiba Inu for 2022- 2023

    Source: TradingView

    Not the SHIB you used to know

    In unusual fashion, SHIB did not follow the trend of an increased burn rate and decreased volume. According to CoinMarketCap, SHIB’s volume rose by 32.86% within the same period the burn rate increased. With the 24-hour trading volume at $123.72 million, SHIB’s price failed to react positively as it preferred an almost neutral position at $0.000010.

    While the whole outcome might be surprising, there were other unusual events that took place leading up to the present state. A look at the chart showed that SHIB’s accumulation and distribution had surged incredibly high. With the Accumulation and Distribution Line (ADL) at 97.95trillion, it meant that there was high demand for SHIB. In this case, traders were not only buying to hold, but also using the token to trade.

    Despite the neural reaction of the price, it seemed that the ADL had also helped in raising the SHIB support since 21 October. At press time, SHIB was holding its support level at $0.00000994.

    However, there were indications that the support might not be solid enough. This state was revealed by the Directional Movement Index (DMI). Based on the DMI indication, SHIB seemed to be at risk of falling to the bears. 

    This, because of the buyers’ (green) inability to overcome the sellers’ strength (red). Hence, giving the latter an edge over them. In addition, the Average Directional Index (ADX)  was close to hitting strong directional movement. With the ADX at 23.58, a move further north might spell doom for investors looking to make short-term profit.

    Source: TradingView

    What’s with SHIB on-chain?

    On-chain data from Santiment revealed that SHIB had not done much in terms of its one-day circulation. In fact, the decline from 18 October till the time of this writing was a glaring one. The platform revealed that SHIB’s circulation was 532.71 billion, at the time of writing. The circulating state might prove that investors should not take the DMI’s indications lightly.

    It was not also a positive sight, as per the transactions count. Santiment recorded the transaction count to be 133 billion, at press time. As such, SHIB seemed to be losing hold of attracting more investors to its shield. Considering all of this data, SHIB might require an “all-star” increase both on-chain and on-charts to see a significant hike.

    Source: Santiment

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