Headlines
▌Trump Administration Considers Giving CFTC Oversight of Digital Assets
According to FOX Business, the incoming Trump administration hopes to expand the powers of the Commodity Futures Trading Commission (CFTC) and grant it significant regulatory authority over the digital asset market.
According to sources familiar with the Trump team's thinking, as Trump takes office and the influence of the crypto industry grows within Republican politics, the CFTC's responsibilities may soon expand to regulate the crypto spot market (such as Bitcoin and Ethereum) and the exchanges that facilitate their trading, which are seen as commodities. Key figures in the Trump team believe that relaxed regulation is needed to stimulate innovation in crypto businesses, including potentially transformative blockchain technology that can eliminate expensive intermediaries in commercial transactions.
"With adequate funding and the right leadership, I believe the CFTC could begin regulating digital commodities on day one of the Trump presidency," said former CFTC Chairman Chris Giancarlo to FOX Business.
▌U.S. Court Rules Sanctions on Tornado Cash Smart Contracts Unlawful
The U.S. Fifth Circuit Court of Appeals found that the Treasury Department's sanctions on the Tornado Cash smart contracts were unlawful, as the Treasury Department exceeded its authority in sanctioning the immutable smart contracts deployed by Tornado Cash developers. The immutable smart contracts deployed by Tornado Cash developers were not the property of foreign individuals or entities.
Market
As of press time, according to Coingecko data:
BTC last traded at $92,077.18, with a daily change of -1.3%;
ETH last traded at $3,323.72, with a daily change of -2.7%;
BNB last traded at $613.16, with a daily change of -3.7%;
SOL last traded at $230.84, with a daily change of -1.7%;
DOGE last traded at $0.387, with a daily change of -2.0%;
XRP last traded at $1.40, with a daily change of -1.4%.
Policy
▌Senator Joni Ernst Writes to U.S. Government Efficiency Department, Proposing $2 Trillion Spending Cut Plan
Iowa Senator Joni Ernst recently wrote to the leaders of the U.S. Government Efficiency Department, Elon Musk and Vivek Ramaswamy, proposing ideas for budget cuts. Ernst's suggestions include addressing idle office space and uncommitted COVID-19 relief spending, with the proposed cuts totaling over $2 trillion.
Previously, it was reported that Iowa Republican Senator Joni Ernst will lead the Senate Government Efficiency Subcommittee (DOGE).
▌Brazilian Lawmaker Formally Proposes Establishing a National Strategic Bitcoin Reserve
A Brazilian congressman has formally proposed establishing a national strategic Bitcoin reserve - a Bitcoin Sovereign Strategic Reserve. The plan, called the "Bitcoin Sovereign Strategic Reserve" (Reserva Estratégica Soberana de Bitcoins, or RESBit), aims to diversify the country's Treasury. According to the Brazilian media platform Portal do Bitcoin, Congressman Eros Biondini submitted this proposal on Monday.
▌NYSE Files 19b-4 and S-1 with SEC for Bitwise BTCÐ ETF
According to The ETF Store President Nate Geraci on the X platform, the New York Stock Exchange has filed 19b-4 and S-1 documents with the U.S. SEC to list the Bitwise Bitcoin & Ether ETF. The product will hold both spot BTC and ETH, weighted by market capitalization.
Bitwise co-founder Matt Hougan said, "Bitcoin and Ethereum are like gold and tech stocks - not competitors." He believes this ETF will be widely welcomed by investors.
Blockchain Applications
▌Kraken to Shut Down Its NFT Marketplace on February 27, 2025
The crypto exchange Kraken has announced that it will shut down its NFT marketplace 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 marketplace; they will only be able to withdraw their assets.
Kraken stated, "We have decided to close our NFT marketplace in order to redirect more resources to new products and services, including some unannounced initiatives that we are developing. Customers have been notified of these changes, and our team will support them in transferring their NFTs to their Kraken wallets or self-custody wallets of their choice."
Previously, Kraken first revealed plans to launch its own NFT marketplace in December 2021 and launched a beta version in November 2022.
▌Galaxy: Number of Bitcoin L2 Projects Grew About 7-Fold Since 2021, from 10 to 75
Galaxy disclosed data on the X platform, showing that the number of Bitcoin L2 projects has increased about 7-fold since 2021, from 10 to 75. Since 2018, Bitcoin L2 has received $447 million in investment, a trend that is changing the utility of BTC.
Furthermore, Bitcoin L2 projects have seen unprecedented growth, receiving 36% of venture capital funding just in 2024. It is estimated that by 2030, over $47 billion worth of BTC will be accessible through L2, supporting DeFi, fungible tokens, payments, and more.
Cryptocurrencies
▌Standard Chartered Analyst: BTC Short-Term Bottom Range is $85,000 to $88,700
Geoff Kendrick, Standard Chartered's Global Head of Digital Asset Research, attributed the recent market turmoil (including Bitcoin's decline and the rise in U.S. long-term bonds) to the decline in the U.S. bond term premium. The term premium is the additional yield investors demand for holding long-term bonds rather than rolling over short-term bonds. As Bitcoin is often viewed as a hedge against instability in traditional financial markets, increased confidence in U.S. bonds may temporarily diminish Bitcoin's appeal, leading to a price decline.
Kendrick stated, "There are no signs of MicroStrategy slowing their purchases, and they are unlikely to sell, but since the election, the average purchase price for ETFs and MSTR has been $88,700, which could be a short-term bottom, and Bitcoin may consolidate in the $85,000 to $88,700 range before resuming an upward trajectory."
▌Nasdaq ISE Excludes Bitcoin Trust Products from FLEX Options Trading
Nasdaq ISE LLC has filed a rule change proposal to exclude Bitcoin-related trust products such as the 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 now effective, aiming to ensure that option positions and exercise limits are consistent with existing rules. The SEC is also seeking public comments on this proposal, which can be submitted through various channels.
▌Cipher Mining Announces Acquisition of New Texas Facility, Signs 100MW Expansion Agreement
Cipher Mining Inc. (NASDAQ:CIFR) announced that it has completed a transaction to acquire a new facility called Stingray in West Texas for $4.1 million in cash and a floating rate of $1.5/MWh for the first five years after the facility is energized. The 250-acre site has been approved and a contract for up to 100MW of facility expansion has been signed.
"With this site added, we now have a plan for data centers that will be operational by 2026, complementing our other new data centers planned for 2025 and 2027," said Cipher CEO Tyler Page. With this new site, Cipher's active portfolio and development pipeline will total 11 sites with 2.6GW.
▌In November, pump.fun Accounted for Over 62% of Solana Ecosystem DEX Trading Volume
According to Dune data, pump.fun accounted for 62.3% of the trading volume on Solana decentralized exchanges (DEXs) in November, with a 42.3% share of trading value. Over the past three months, the platform has contributed over 60% of Solana's DEX trading volume on average.
▌Grayscale Opens 17 Token Trust Funds, Including SOL, SUI, and XRP, to Accredited Investors
Grayscale has posted on the X platform that it has now opened up private placement subscriptions for 17 token trust funds to 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 placement subscriptions to qualified investors based on net asset value (NAV).
Important Economic Dynamics
▌ The probability of a 25-basis-point rate cut by the Fed in December is 62.8%
According to the CME "Fed Watch", the probability of the Fed maintaining the current interest rate in December is 37.2%, and the probability of a cumulative 25-basis-point rate cut is 62.8%. The probability of maintaining the current interest rate in January 2023 is 28.4%, the probability of a cumulative 25-basis-point rate cut is 56.8%, and the probability of a cumulative 50-basis-point rate cut is 14.8%.
▌Fed Mouthpiece: FOMC Minutes Suggest Rate Cuts May Become More Cautious If Inflation Stagnates
Nick Timiraos, the "Fed Mouthpiece", wrote that Fed officials discussed at their meeting earlier this month the possibility of slowing or pausing rate cuts if progress in lowering inflation stalls. According to the FOMC minutes released on Tuesday, officials felt that if the economy performs as expected, with inflation continuing to decline steadily, "it may be appropriate to move the policy rate to a more neutral setting." The minutes showed that all 19 participants agreed to a 25-basis-point cut in the Fed's benchmark short-term rate. Some policymakers felt that the risks of a more pronounced slowdown in the job market or the economy have diminished since the September meeting. Many of them also said there is greater uncertainty about where to set rates for an economy that doesn't need stimulus or monetary restraint. The minutes said these considerations "made it appropriate to begin reducing policy accommodation."
▌The Fed is considering a 5-basis-point cut in the reverse repo rate as a technical adjustment
The FOMC minutes show that the Fed is considering a 5-basis-point cut in the reverse repo rate as a technical adjustment. Some participants said that it may be appropriate to reset the overnight reverse repo rate to the bottom of the federal funds rate target range in the future.
Jinse Encyclopedia
An airdrop is like a surprise gift of cryptocurrency. Imagine opening a box and finding coins inside! This is similar to receiving an announcement from a new blockchain project about free tokens or coins. 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.
Airdrops play a crucial role in the crypto ecosystem. New projects use airdrops as a marketing strategy to increase awareness and build a user base. They are like free samples in a supermarket, enticing users to try out new products. From the user's perspective, airdrops provide an opportunity to acquire new cryptocurrencies with minimal effort, and the potential for significant gains. These tokens are not just freebies, but a way to participate in the evolving digital economy.
Disclaimer: Jinse Finance, as a blockchain information platform, the articles published are for reference only and do not constitute actual investment advice. Please everyone to establish the correct investment concept, and must improve risk awareness.
