FameEX Morning Crypto News Recap | January 14, 2025
2025-01-14 09:08:35Trump Considers Executive Order to Overturn Cryptocurrency Accounting Rules
Trump is anticipated to issue an executive order on his first day as president, targeting debanking and repealing cryptocurrency accounting rules that classify digital assets as liabilities. His team prioritizes these actions to safeguard cryptocurrency investors and counteract bureaucratic obstacles in Washington, signaling strong support for the crypto sector.
Bitcoin Trading Volume Hits $213 Billion Following Post-Election Surge
Bitcoin's post-election surge boosted weekly trading volume to $213 billion, the highest since May 2021. Increased institutional interest has revitalized U.S. exchange activity, bringing it back to levels seen in the first quarter.
Hedge Funds Buy the Dip as Bitcoin Exchange Reserves Hit 7-Year Low
As of January 13, Bitcoin exchange reserves dropped to 2.35 million BTC, the lowest in nearly seven years since June 2018 when Bitcoin was $7,000. Analysts attribute this decline to crypto hedge funds purchasing Bitcoin during price dips.
Analysts Warn Stock Market Downturn Poses Biggest Risk to Bitcoin
Bloomberg senior ETF analyst Eric Balchunas identified the stock market's decline as Bitcoin's main risk, noting both upsides and downsides. He emphasized optimism, stating that Trump’s likely efforts to sustain stock market growth reduce concerns about short-term pullbacks, offering a more stable outlook for Bitcoin's performance.
Opinion: Trump Confronts Economic Challenges with Limited Policy Options in Second Term
As Trump begins his second term, the U.S. economic landscape differs significantly from 2017. Harvard professor Karen Dynan highlights inflation, federal deficits, and rising government borrowing costs as major constraints, limiting the administration’s policy flexibility amidst ongoing economic challenges.
Russia's Demand for Crypto Mining Machines Soars Threefold After Mining Legalization
In Q4 2024, demand for crypto mining machines and services in Russia tripled year-on-year. The Industrial Mining Association’s chairman attributed this surge to new regulations legalizing cryptocurrency mining, fostering increased interest and activity in the sector.
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