KEYTAKEAWAYS
- Trump: "We Will Do Some Great Things with Cryptocurrency"
- U.S. Core CPI Unexpectedly Cools, Market Anticipates Fed Rate Cuts
- MicroStrategy to Issue Preferred Shares for Bitcoin-Leveraged Investments
CONTENT
1. TRUMP: “WE WILL DO SOME GREAT THINGS WITH CRYPTOCURRENCY”
On January 16, former U.S. President Donald Trump stated during an interview at the New York Stock Exchange: “We will do some great things with cryptocurrency.” This remark has sparked speculation about Trump’s potential policies to promote cryptocurrency in the future.
Analysis:
Trump’s positive statement on cryptocurrency could elicit a favorable market response, especially for mainstream cryptocurrencies like Bitcoin.
This suggests that under his administration, cryptocurrencies may gain broader recognition and support, potentially attracting more institutional investors.
If Trump pursues a more favorable regulatory environment, market confidence could strengthen further, especially during a potential future presidency. Given Trump’s influence, such remarks may garner significant attention from the cryptocurrency community, driving demand and possibly boosting prices of crypto assets.
2. U.S. CORE CPI UNEXPECTEDLY COOLS, MARKET ANTICIPATES FED RATE CUTS
On January 16, Wednesday, the latest U.S. inflation report revealed that December’s overall CPI largely met expectations, while core CPI unexpectedly declined, marking its first drop in six months and falling below both expectations and previous levels.
Following the report, traders moved their expectations for the Federal Reserve’s first rate cut from September to June, with the likelihood of two rate cuts this year returning to pre-nonfarm payroll levels.
Analysis:
Cooling U.S. inflation has a generally positive impact on the cryptocurrency market. Slower inflation may prompt the Federal Reserve to ease interest rate hikes or even implement rate cuts, boosting market sentiment and encouraging capital inflows into the crypto market.
This would benefit Bitcoin and other cryptocurrencies. Additionally, a weakening U.S. dollar could further support crypto prices. However, if inflation cools less than anticipated, it might spark doubts about policy direction, causing short-term market volatility. Investors should closely monitor Fed policy and market sentiment.
3. MICROSTRATEGY TO ISSUE PREFERRED SHARES FOR BITCOIN-LEVERAGED INVESTMENTS
On January 16, MicroStrategy co-founder Michael Saylor announced at the Benchmark Investor Conference in Orlando that the company plans to issue perpetual preferred shares as a new means to provide investors with leveraged exposure to Bitcoin.
Analysis:
MicroStrategy’s plan to offer leveraged Bitcoin investment products could significantly impact the cryptocurrency market. By issuing perpetual preferred shares, the company seeks to provide higher returns and volatility, which will likely appeal to investors seeking high yields.
However, the risks of such high-leverage investments cannot be overlooked, particularly given the volatility of assets like Bitcoin.
Also Read：
CoinRank Crypto Digest: January 13, 2025
CoinRank Crypto Digest: January 14, 2025
CoinRank Crypto Digest: January 15, 2025
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