Price Action:
*Bitcoin’s price has seen a slight decline, closing at around $104,842, with a narrow range indicating consolidation. The sentiment among traders is balanced, but pressure from long positions being closed could lead to a bearish scenario if the price falls below $96,938, while a bullish breakout could occur above $108,276.
*Ethereum’s price increased by approximately 3.75%, with significant volatility and a range of about 6.5%. The sentiment remains balanced, with moderate liquidations, and future price action could see a bullish move past $3666 or a bearish retracement towards $3032.
News this week:
*MicroStrategy (MSTR), known for its strong Bitcoin advocacy, has expanded its Bitcoin acquisitions by raising $584 million through a perpetual convertible preferred stock offering. Originally aiming for $250 million, high demand tripled the offering size, resulting in the issuance of 7.3 million shares at $80 each. The funds will be used to purchase more Bitcoin.
*The U.S. Securities and Exchange Commission (SEC) has fast-tracked approval for Bitwise’s dual Bitcoin and Ethereum exchange-traded fund (ETF). This decision permits NYSE Arca to list and trade shares of the fund, which will include holdings in both spot Bitcoin and Ether, along with cash reserves.
*With President Trump’s self-imposed February 1 deadline for the first round of tariffs on Canada, Mexico, and China fast approaching, economic analysts and global leaders are bracing for potential impacts. On Thursday, Trump reaffirmed his plan to impose a 25% tariff on imports from Mexico and Canada but added to the uncertainty by stating that some provisions were still under consideration.
*The Federal Reserve’s preferred inflation measure indicated that price pressures remained persistent in December 2024, reinforcing a cautious stance on interest rates. The core Personal Consumption Expenditures (PCE) index, which excludes food and energy, rose 2.8% year-over-year, unchanged from November’s reading, suggesting little progress in cooling inflation.
*KuCoin, a leading cryptocurrency exchange, pleaded guilty to operating an unlicensed money-transmitting business in the U.S. and agreed to pay nearly $300 million in fines and forfeitures.
*Global technology shares have declined due to concerns over China’s DeepSeek AI app, which rivals top models at a lower development cost.
*Bitcoin rose over 2% to trade at $102,759, while XRP surged by 11% to $3.20, recovering from a broad market decline influenced by DeepSeek’s AI developments.
*Boeing announced an $11.8 billion loss for 2024, its second-largest ever, due to production disruptions, a factory worker strike, and ongoing safety concerns with its 737 Max jet models
*Nvidia’s shares fell by 13%, erasing $465 billion in market value—the largest single-day loss in U.S. market history—amid concerns over competition from DeepSeek’s AI advancements.
*Serbian Prime Minister Miloš Vučević resigned following widespread student-led protests sparked by allegations of government corruption after a fatal incident in Novi Sad
* Global technology shares have declined due to concerns over China’s DeepSeek AI app, which rivals top models at a lower development cost.
* DeepSeek’s cost-efficient AI model has caused a sharp decline in hardware stock prices, including Nvidia, as its success questions the need for resource-intensive approaches in AI development.
* The UK government is considering using £5 billion worth of seized bitcoin from organized criminals to address its £22 billion public finance deficit.
* President Donald Trump pardoned Ross Ulbricht, founder of the dark web marketplace Silk Road, who was serving two life sentences for his involvement in drug trafficking and other crimes.
* Despite China’s stringent restrictions on cryptocurrency trading, underground brokers continue to facilitate large-scale crypto transactions, undermining Beijing’s economic controls.
* President Donald Trump signed an executive order to regulate and promote the cryptocurrency industry, including exploring the creation of a national digital asset reserve.
* The new administration has issued a series of executive orders impacting trade, the economy, and financial services, signaling significant policy shifts.
