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XRP Surges 12% to Lead Crypto Rebound Ahead of U.S. FOMC

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Bitcoin (BTC) rose to nearly $103,000 to usher gains across the crypto market on Tuesday after breakthroughs from China’s DeepSeek led to a steep fall in U.S. indexes on Monday, prompted by concerns of overvaluations of its AI investments.

XRP led gains among crypto majors with a 12% surge, while Cardano’s ADA, BNB Chain’s BNB, Solana’s SOL and dogecoin (DOGE) zooming as much as 9%. Ether (ETH) gained 4.5%, while overall market capitalization rose 3%.

BTC rose nearly 4% in the past 24 hours, easing losses from Monday which saw over $1 billion in futures liquidations and an 8.5% decline in the broad-based CoinDesk 20 (CD20) at peak.

Large liquidation events often present a market buying opportunity, as CoinDesk noted on Monday, as they can signal an overstretched market that indicates a price correction has occurred, among other factors.

As such, TRUMP tokens were up 12% to lead gains among midcaps, or tokens below a $5 billion market cap.

Part of the gains in majors came as Tuttle Capital filed the first-ever 2x leveraged ETFs in the U.S. on Monday, proposing products that would return 200% of the daily price performance of nearly all major tokens, plus BONK, TRUMP and MELANIA.

Monday’s nosedive was largely attributed to breakthroughs from China’s DeepSeek, whose model was shown to outperform AI giant OpenAI’s, all while being built on a budget of $6 million and a fraction of the Graphics Processing Units (GPUs) that OpenAI uses (it recently closed a $6.6 billion round with a valuation of over $157 billion).

However, some traders state that DeepSeek’s breakthrough is among a bunch of factors that may impact bitcoin and crypto markets in the near term.

“Initial fears about DeepSeek presented a buying opportunity for crypto as the industry isn’t in direct confrontation with the Chinese AI firm,’ Nick Ruck, director at LVRG Research, told CoinDesk in a Telegram message. “Instead, founders of crypto projects that use AI can integrate DeepSeek’s open-sourced model into their projects for more efficiency and enhanced innovations.”

“However, there are still choppy waters ahead as this week is heavy with macro data releases from US agencies, including the FOMC, and earnings reports from major companies such as Apple, Meta, and ASML. We remain optimistic for Bitcoin in the long term, as policies are shaping up to be very beneficial for the crypto industry’s growth in the U.S. and abroad,” Ruck added.

Traders expect no indications of a rate cut at the two-day FOMC meeting scheduled for Jan. 28 to Jan. 29, which has typically impacted bitcoin prices as investors either prefer or move away from risk assets.

Meanwhile, Singapore-based QCP Capital provided astrological cues as part of a larger Tuesday market update.

“As we approach the Year of the Snake, the market’s twists and turns remind us of the wisdom, adaptability, and resilience this zodiac symbolizes – qualities that will be essential as we navigate 2025’s challenges and opportunities,” the firm said in a broadcast.

There may be truth to that gospel, as CoinDesk reported Monday. Bitcoin emerged highly profitable for bulls in 2024, the Chinese Year of the Dragon, while Hong Kong-based firms cautions “unpredictable twists” that eventually brings new highs — based on where “Rough Green” and “Brown Tree” snakes are in the lunar charts.





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BTC Price Slips Below $100K as Canada’s Trudeau Retaliates to Trump’s Tariffs

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Bitcoin (BTC), the leading cryptocurrency by market value and the only macro asset open for trading over the weekend, held below $100,000, trading weak for the third straight day, as Canada joined Mexico in announcing retaliatory import tariffs against the United States.

Prime Minister Justin Trudeau said Canada would impose 25% tariffs on U.S. goods, from drinks to appliances, after President Donald Trump imposed a 25% tariff on Canadian and Mexican imports and 10% on goods from China. China said it would file a case against the U.S. at the World Trade Organization while vowing unspecified countermeasures to safeguard its interests.

The renewed trade war, coupled with mass deportations of illegal migrants from the U.S., could add to inflation, weakening the case for speedy Fed rate cuts. BTC’s price weakness likely reflects these concerns and offers risk-off cues to traditional risky assets. The broader crypto market followed BTC lower, with the CoinDesk 20 Index falling over 2%.





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Czech National Bank To Assess Bitcoin as Part of Reserve Strategy

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The Bank Board of the Czech National Bank (CNB) has approved a proposal to evaluate investing in new asset classes, including Bitcoin, as part of its international reserve management strategy. The decision came during a meeting today where the board reviewed a report on its international reserve management for 2024.

The approval is a result of the CNB’s ongoing diversification efforts over the past two years, the central bank said. Governor Aleš Michl proposed the analysis, aiming to determine whether Bitcoin could enhance the diversification and returns of the central bank’s reserves. However, the CNB clarified that no immediate changes will occur, and the results of the analysis will guide any future steps.

This announcement comes just a day after Michl revealed intentions to allocate up to 5% of the CNB’s €140 billion reserves to Bitcoin, in an interview with the Financial Times. This allocation could make the Czech Republic the first western central bank to embrace holding bitcoin on its balance sheet. Michl emphasized that Bitcoin specifically could offer an innovative approach to reserve management and diversification.

If implemented, the CNB’s move could set a disruptive precedent for central banks globally, further highlighting the broader shift toward integrating bitcoin into traditional reserve strategies. The central bank said it plans to disclose any adjustments in its quarterly and annual reserve management reports.





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Stablecoin Supply on SOL Surged by 112% in January With TRUMP Memecoin Frenzy: CCData

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The supply of stablecoins on Solana jumped by 112% in January to a record high of $11.1 billion, CCData (a subsidiary of CoinDesk) said in a research report on Friday.

The surge coincided with the launch of Donald Trump’s memecoin $TRUMP, which caused a wave of inflows to the network, according to the report. Stablecoin supply has risen by 73.6% since $TRUMP launched on Jan. 18.

Trading activity around $TRUMP resulted in record activity on decentralized exchanges (DEXs) and contributed to stablecoin supply on Solana, surpassing its previous record set in 2022 and becoming the third largest network behind Ethereum and Tron, based on this metric.

The report also said that the market capitalization of all stablecoins has passed $200 billion, having grown by $37 billion since Trump won the U.S. election in November.

The increase in supply has also coincided with a decrease in the domination of Tether’s USDT, the largest stablecoin with a market cap of around $140 billion. According to CCData, its share of the sector dipped from 67.5% to 64.9% in January, the lowest since May 2023.

One such beneficiary of this trend appears to be Ripple’s USD, which became the fourth-largest stablecoin by trading volume on centralized exchanges in January, the report said.

Ripple spent much of the last few years locked in a legal battle with the U.S. Securities and Exchange Commission (SEC). The “Trump effect” has helped native token XRP jump by 33% to trade at over $3.10 this month, and CEO Brad Garlinghouse has spoken of a bump in U.S.-based deals and hiring as well.

Read More: Grayscale Files SEC Proposal to Convert XRP Trust Into ETF





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