Bitcoin Donald Trump—who has positioned himself as a crypto-friendly candidate in the presidential race—ended the week strongly ahead of his second term inauguration on Monday.
It had a slow start to the week but traded at a two-month low – below $90,000 – as a trader. Be careful Based on the Federal Reserve's plans for interest rates this year.
But new information He came down Wednesday's data showed inflation was at its lowest level at the end of last year, with the consumer price index rising 2.9 points in the 12 months to December. That, traders say, makes another Fed rate cut seem more likely.
Bitcoin tends to do well in low interest rate environments – or has done in the past – so if the Fed sees more reason to lower borrowing costs, Bitcoin could become even more attractive. The property passed $99,000 before he proceeded to take the 100,000 stake again and continue his flight.
Trump's news From crypto-related orders In his first week in office, he helped push the coin to where it is now.
ETF flow
A lot of money — but not all — is flowing into the Bitcoin space through investors buying shares in the new exchange-traded funds.
The world's largest economy has huge liquidity – and large flows into its products will change market sentiment.
Hundreds of millions left the fund earlier this week and late last week – as investors debated what the central bank would do next.
But on Wednesday, the tide turned and a total of $755 million hit the fund, according to data from Farside Investors. Thursday was also a very good day, with investors dumping another $626 million into investment vehicles — but Friday was the biggest.
The problem of mining has reached a high level
It wasn't just the price of Bitcoin that increased this week: the mining problem of the great cryptocurrency also hit New high. It is currently 110.45 trillion, which means that it is harder than ever to issue a new block.
Computers in the mining world race to solve complex mathematical problems so that new blocks can be added to the blockchain. And if the miners find it very difficult to complete that task, the network is working as it should.
Bitfinex hack update
In other news, the Ministry of Justice he said. Recovered bitcoins stolen in the infamous 2016 Bitfinex hack should be returned to the exchange.
The feds say there are no “victims” in the case where Ilya Lichtenstein stole about 120,000 Bitcoin (worth more than $12 billion today), while his wife, rapper and social media personality Heather “Razilkan” Morgan, helped launder some of the money.
About 90,000 bitcoins were eventually recovered and could be returned to Bitfinex, which it says had put customers through a payment program years ago. However, not every customer agrees with this view, especially since the price of Bitcoin has risen.
Gensler disses crypto-but not Bitcoin
Widely regarded as the crypto bogeyman, SEC Chairman Gary Gensler is leaving and will soon be replaced. In an interview on Tuesday, the supervisor They spoke While CNBC sees many cryptocurrencies as unregulated securities, bitcoin may in the future be traded as a commodity like gold.
Referring to how gold has been traded for 10,000 years, he said: “We have Bitcoin, and it could be something else in the future.”
Trump's executive order
Sources They spoke Decrypt The incoming president plans to issue a crypto-related executive order to help the industry on his first day in office. A raft of reforms, some previously unreported, are being considered, including ordering regulators to form a crypto working group to get the industry on the same page.
The incoming president campaigned on his promise to help Bitcoiners and the space in general.
Coinbase Bitcoin Loans
And America's largest crypto exchange, Coinbase, has it He started Bitcoin-backed loans are back – after being discontinued two years ago. The loans allow investors to use their “digital gold” as collateral and instantly borrow up to $100,000 in USDC stablecoins.
The new service is powered by a third party: Morpho, a lending protocol based on the Ethereum layer-2 network created by Coinbase.
Edited by Andrew Hayward.
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