The past week has seen major developments in the macroeconomic landscape, including significant movements in the cryptocurrency sector. While Bitcoin (BTC) battles to maintain its $90,000 benchmark, unpredictability associated with Trump’s administration deters investors from declaring a full rebound. Within the last 24 hours, eight substantial events unfolded with potential long-term consequences anticipated.
Noteworthy Developments in Cryptocurrencies
In a recent announcement, Trump expressed his intent to sign a cryptocurrency law soon. However, executive orders hold limited long-term advantages for cryptocurrencies, as a new president could easily overturn them. The GENIUS Act from last year and the ongoing crypto market clarity laws are poised to benefit the sector regardless of Trump’s tenure.
The important developments in the last 24 hours include the Senate Agriculture Committee releasing an updated crypto market structure bill expanding CFTC’s authority on crypto commodities. The Senate Banking Committee, focused on housing affordability efforts by Trump, may delay discussions on this bill to February-March, as reported by Bloomberg.
The White House crypto advisor warned that if the legislative process stalls, Coinbase might confront stricter regulations. Meanwhile, Eric Trump claimed banks are obstructing the crypto bill, although the administration expects banks to take action post-rules endorsement.
Iran bought USD stablecoins worth $500 million to circumvent sanctions, according to Elliptic. The US government also conducted nine auctions last week, selling $654 billion in Treasury securities. Ondo Finance introduced over 200 tokenized stocks, ETFs, bonds, and commodities on Solana.
Neynar shifted focus towards wallet development by acquiring Farcaster. In addition, the US M2 money supply hit a record $22.3 trillion, while the Treasury repurchased $2.8 billion of its debt.
Bitcoin (BTC)
The rapid surge in global liquidity has raised expectations for a substantial inflow into cryptocurrencies. However, without the right conditions, digital currencies continue to lose momentum. Should Trump’s influence in midterms be curtailed, accelerated AI growth could see crypto capitalizing on burgeoning liquidity, triggering potent rallies.
JA_Maartun of CryptoQuant has drawn attention to Strategy’s significant institutional Bitcoin purchasing activity. Such intensified buys were observed during November elections, prompting a major BTC rally. While the current scenario’s outcome remains uncertain, Strategy’s activities suggest the company perceives current levels as the market bottom.
Michale Poppe is anticipating a retrieval of the 21-day moving average in the ETHBTC pair.
This chart confirms the downturn in altcoins, indicating a rebound potential from the local bottom, suggesting an upcoming altcoin rally led by Ethereum (ETH).
