As markets prepare for the U.S. presidential inauguration on Jan. 20, 2025, analysts are sounding the alarm about a potential disruption in global market sentiment: a weakening of the yen carry trade. This strategy, which relies on Japan's ultra-low interest rates, is facing significant pressure due to expectations of a rate hike by the Bank of Japan (BOJ). “The BOJ rate hike will likely cause a significant unwinding of yen carry trades, which could dampen the enthusiasm of the ‘Trump Trade’ market,” Marcin Kazmierczak, COO of RedStone Oracles, told Reuters. WeFi Head of Growth Agne Linge shared similar concerns, saying that the rate hike could lead investors to sell risky assets like Bitcoin to cover carry trade loans. The yen carry trade, a long-standing investment strategy in which investors borrow yen at low interest rates to invest in higher-yielding global assets, could face a serious unraveling if the BOJ raises interest rates. Markets are closely watching the BOJ’s policy meetings next Thursday and Friday, with speculation the central bank could raise its short-term interest rate target to 0.45% from 0.25%. Hawkish signals from BOJ Governor Kazuo Ueda and rising Japanese government bond (JGB) yields have fueled these expectations. A stronger yen would raise borrowing costs for investors using carry trades, potentially making it harder to liquidate global equities and riskier assets like BTC. Related News: Spot ETF Hype for Surprise Altcoin: Countdown for SEC's Decision Begins “If the BOJ raises rates, this could strengthen the yen and cause rapid unwinding of risky asset positions, causing a ripple effect in global markets, as we saw in early August 2024 when Bitcoin fell from $66,000 to $55,000 in a week,” Kazmierczak said. While the weakening of the yen carry trade could dampen optimism around the “Trump Trade,” a term used to describe market optimism tied to President-elect Donald Trump’s pro-growth policies, Kazmierczak believes the impact will be gradual. “The important thing will be to watch how they balance domestic inflation targets against global market stability,” he said. Bitcoin markets remain particularly fragile. BTC has already seen high volatility as investors monitor both BOJ policies and US economic developments. However, positive US Consumer Price Index (CPI) data released earlier this week supported risk sentiment. “Core CPI data showed inflation rose less than expected,” Linge said, adding: “With the upcoming inauguration, the so-called ‘Trump Trade’ effect is likely to trigger a breakout in Bitcoin price, pushing it close to all-time highs.” *This is not investment advice. Continue Reading: Insidious Danger Awaiting Bitcoin and Altcoins: Analysts Warn Ahead
Texas and Oklahoma introduce bills to establish Bitcoin reserves, aiming to position their states at the forefront of the digital economy
Analysts are betting on a high possibility of a price rally for the largest meme coin in the cryptocurrency landscape, as market observers see that Dogecoin is gaining momentum and could be ripe for a price explosion. Data shows that optimism on the meme coin grew, fueled by an uptick in the coin’s open interest and an ongoing price recovery that led the token to breach its resistance level. Related Reading: Ethereum Whales Absorb $1 Million Loss As Market Caution Intensifies Dogecoin Open Interest Hits $4.7 Billion Analysts believe that Dogecoin could potentially experience a rally that would lead to the meme coin hitting the $0.39 level, saying that the token is currently on a recovery mode and gaining momentum. One of the positive indicators that tell a possible upward trend for DOGE is open interest. Data show that there is growth in the open interest in the token. According to CoinGlass, open interest in Dogecoin surged by nearly 10% in the last 24 hours, allowing the meme coin to hit $4.74 billion. Meanwhile, a crypto analyst noted that the long-to-short ratio of 0.9964 might show a slightly higher number of bearish positions. Still, the token is on the positive side in terms of volume-weighted funding rate which has increased by 0.0098% — an indicator that investors are willing to pay a premium to maintain their bullish positions. Overall, analysts are confident that the derivatives data points suggest that the upward movement for the largest meme coin would continue. Remaining Above The Fibonacci Support Level Crypto analysts noted that DOGE reached a price of $0.31385, which remains above its 23.62% Fibonacci support level. They highlighted that while DOGE initially faced strong bearish pressure, the token managed to recover and gain bullish momentum. Market observers said that data indicated that the price of DOGE soared to near the 50% Fibonacci level, trading at $0.3675 and seeing a series of consecutive bullish candles. Dogecoin climbed above the 200 EMA line and reached the 38% Fibonacci level, driving the higher likelihood of positive crossovers for the token. Moreover, indicators highlighted that DOGE has reached its overbought boundary in its 4-hour RSI, supporting the chances that the token will continue to surge. As of press time, Dogecoin is being traded at $0.3776 with a total market capitalization of $55 billion. DOGE is up 3.1% and 15.8% in the daily and weekly frames, data from Coingecko shows. Related Reading: Expert Sees Bitcoin Dipping To $50K While Bullish Momentum Persists Is $0.39 Within Range? Analysts suggested that many indicators are showing that Dogecoin is gaining strength which could propel it to $0.39 per coin. DOGE continues to dominate its segment of the crypto landscape at about 50%, surpassing the psychological resistance level of $0.35. Crypto observers noted a 5% increase in the altcoin market, another metric that could help Dogecoin with its upward trend. Featured image from Cybernews, chart from TradingView
Soros' theories provide insights into cryptocurrency market behaviors. Altcoins often experience faster declines than Bitcoin due to various factors. Continue Reading: Soros’ Theory Illuminates the Rapid Decline of Altcoins Compared to Bitcoin The post Soros’ Theory Illuminates the Rapid Decline of Altcoins Compared to Bitcoin appeared first on COINTURK NEWS .
Crypto assets faced a bumpy ride over the last seven days, resulting in huge outflows in institutional and retail markets. Like Bitcoin (BTC) and Ethereum (ETH), Solana was among the affected assets that recorded negative weekly figures after showing signs of a bullish uptick. Despite these exits, a spark in Solana’s institutional demand has ignited explosive optimism in bulls. Solana Records Weekly Fund Inflows Solana turned the tide in a week that saw most altcoins in the red zone, holding on to weekly inflows. A new CoinShares Weekly Fund Flows Report shows crypto assets saw a modest $48 million inflows last week, a sharp decline from previous positions. Amid massive whale exits, the total crypto market cap slumped 7%, with billions liquidated within days. Solana proved its status as an institutional investor favorite, recording slight gains. Last year, the asset picked up consecutive gains as anticipation for spot ETFs grew in the United States. According to CoinShares, SOL notched a $15 million net flow to its funds, recovering monthly gains to $14 million. At the time of writing, total assets under management (AUM) surpassed $1.59 billion. Most traders view these gains as a catalyst for SOL demand. Notably, Solana rebounds faster than the wider market, leading to projections of explosive gains in the next bull peak. In the last 24 hours, crypto prices have gained momentum as most on-chain metrics flipped green. SOL trades at $212, moving up over 5% and recovering weekly outflows. Cardano (ADA) also notched swift gains as participants leveraged intraday trading to open new positions. The community dubbed ETH killer exchanges hands at $1.13, gaining 5.7% today. Ethereum Woes Continue Ethereum (ETH) lagged amid slight gains recorded on the institutional front in many altcoins. ETH saw $255 million in outflows in one week, changing the dynamics of Bitcoin and other assets. Ethereum loss comes as whales dump the asset to gauge little gains. After the ETH price fell below $3,300, several large holders heightened sell pressure, lowering sentiments. Overall, the market saw large outflows towards the end of the week due to macroeconomic factors. “ Although nearly US$1 billion poured in during the first half of the week, the release of new macroeconomic data and the US Federal Reserve’s minutes which pointed to a stronger US economy and a more hawkish Fed led to outflows of US$940 million in the latter half. This suggests that the post-US election honeymoon is over, and macroeconomic data is once again a key driver of asset prices,” CoinShares wrote.
An employee of a diamond mining company in Russia was reportedly sentenced to seven years in prison for providing financial assistance to the military forces of Ukraine. According to local media outlet Izvestia, a man from the Mirninsky district of Yakutia is now detained in a maximum security prison after using cryptocurrency to repeatedly transfer funds to the Armed Forces of Ukraine (AFU). The report says the man aided a unit of the AFU in carrying out intelligence and subversive activities against Russia by providing financial assistance. He is said to have received instructions to transfer funds to a digital wallet after joining a group on a social network. Says Russia’s Federal Security Service (FSB), according to the report, “A criminal case was initiated and investigated against a resident born in 1988 under Art. 275 (‘Treason in the form of financial assistance to a foreign state, international or foreign organization or their representatives in activities directed against the security of the Russian Federation’) of the Criminal Code of Russia.” Russia and Ukraine are taking advantage of crypto amid the ongoing war between the two countries. Following Russia’s invasion, the Ukrainian government announced it was accepting crypto donations for wartime support . Companies in Russia now use Bitcoin ( BTC ) and other digital currencies to engage in foreign trade as the nation faces Western sanctions. Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post Russian Sentenced to Seven Years in Prison for Sending Crypto Assets to Ukrainian Military: Report appeared first on The Daily Hodl .
Mining-as-a-service firm Blockware has proposed that DeFi protocol Aave create a Bitcoin treasury by mining Bitcoin. In a temperature check proposal submitted to the Aave DAO, the firm is offering to partner with the DeFi protocol to mine BTC. According to the proposal , Aave, which has grown to become a leading DeFi protocol in terms of total value locked (TVL), could benefit tremendously from mining. Blockware Head of Institutional Sales David Gamble explained that the successful lending platform could create a new revenue stream through Bitcoin mining, which would improve its balance sheet and position it for more adoption. Gamble wrote: “This isn’t just any treasury strategy—it’s an untapped opportunity that not only strengthens the protocol’s balance sheet but also opens the door to significant capital gains tax depreciation strategies.” The proposal also noted that Bitcoin mining as a strategy would benefit Aave-issued decentralized stablecoin GHO. GHO, which launched in 2023, has struggled to compete with more established stablecoins such as USDT and USDC. The Blockware proposal believes BTC mining could help GHO adoption rate. The strategy is expected to enable the integration of the Aave protocol into the Bitcoin network, expanding its reach and creating more market attention for the platform. Blockware wants to offer white-glove mining service to Aave A critical part of the proposal is the possibility of a partnership between Blockware Solutions and Aave. According to the proposal, Blockware has been offering mining services since 2017 and could aid Aave mining efforts without extra cost. Gamble explained that Blockware has economies of scale for its mining services, and the DeFi platform can leverage this to acquire Bitcoin mining machines at a significant discount while Blockware hosts them. He added that this strategy offers multiple benefits for the platform as they get their own discounted mining hardware that will appreciate over time, grow their treasury, and generate positive publicity. Interestingly, the mining expert noted that this is the best time to make such a move due to the current stage of the mining cycle. According to him, the cost of acquiring rigs is currently low, and there is an increasing appetite to acquire BTC among institutions. Aave DAO member questions mining profitability While the proposal is still in the “Temp Check” phase, where the proponent determines whether there is enough interest from the community, there are already some opponents. One member of the Aave DAO disagreed with Gamble’s projections, noting that Bitcoin mining is not as profitable as the proposal makes it. They observed that several publicly traded Bitcoin miners are unprofitable on a cash basis, adding that the proposal fails to account for several other costs, including the acquisition and hosting of the miners. In response, Gamble noted that publicly traded miners usually have more overhead costs, which is why they are not so profitable. He added that Blockware clients produce BTC at approximately $44,402.85, which represents a significant return on investment. However, the influential DAO delegate, Aave Chan Initiative (ACI), is also against the proposal. Its founder, Marc Zeller, posted, “The ACI is strongly against this proposal.” ACI is one of the key delegates responsible for decision-making on Aave, and its opposition increases the odds that the proposal will not get past the initial phase. Nevertheless, it is still a relatively new proposal that could be discussed further. Aave already holds close to $100 million worth of non-native assets in its treasury including ETH, stablecoins, and other cryptocurrencies. It remains to be seen whether its own mined BTC will join the list. Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap
The cryptocurrency market experienced notable volatility on Thursday, with some altcoins surging while most Top 100 digital assets swung between gains and losses in response to a mix of regulatory developments and shifting investor sentiment. Bitcoin (BTC) is down 1% to $99,000 in the past 24 hours, while Ethereum (ETH) declined 1.5% to $3,300. In contrast, XRP surged by 15% to $3.38, and Solana (SOL) rose by 8% to $214, flipping BNB to become the fifth-largest cryptocurrency by market capitalization. To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io
XRP’s surge to new highs aligns with Bitcoin’s brief reclaim of the $100K mark, showcasing a pivotal moment in the crypto market. The recent CPI inflation report has helped bolster
Cody Maynard, a lawmaker at the Oklahoma House of Representatives, has presented a bill that could allow the state to own digital assets. Maynard proposed the “ Strategic Bitcoin Reserve Act ” or House Bill 1203 to Oklahoma to invest in cryptocurrencies like other U.S. states. Motivation Behind the Bill Speaking on the motivation behind the proposed bill, Maynard maintained that Bitcoin represents freedom from manipulation either by government or private entities. He stated that Bitcoin prevents the system from printing away the purchasing power of the citizens, and as a decentralized form of money, it represents financial freedom. The Oklahoma lawmaker described Bitcoin as the ultimate store of value . He also noted that people who believe in sound money principles embrace the asset. Provisions of the Strategic Bitcoin Reserve Act According to the bill’s proposal, if passed, Oklahoma’s savings accounts and pension fund could be invested in different crypto assets, including Bitcoin. If the lawmakers enact the bill, the State Treasures could hold Bitcoin or any other crypto assets with a market capitalization of $500 billion. The same conditions apply to stablecoins. As it stands, only Bitcoin qualifies as its market capitalization is approximately $2 trillion. Ethereum, the second largest crypto asset by market cap, is almost $100 billion short of cutting. Its market capitalization stands at $401.87 billion at current market price. Ethereum and other assets can only qualify when their value exceeds the prevailing price. However, the bill’s terms specify the public funds that can be safely invested in these crypto assets. It stipulates that crypto investments must not exceed 10% of the cumulative public funds. Other notable provisions in the bill include allowing the treasurer to stake crypto assets using third-party services. This provision comes with a clause that states the treasurer can retain legal ownership of the assets. Legislative Path to Actualization The proposed bill will gain legislative consideration at the next House session, which will commence on February 3. If it scales all legislative proceedings and gets approval for enactment, it would take effect on November 1, 2025. Oklahoma is not alone in the push for a Bitcoin Reserve Act. Lawmakers from other states, such as Pennsylvania, New Hampshire , and Texas, have recently pushed to accumulate Bitcoin by establishing a reserve in their different states. The post Oklahoma Lawmaker Pushes Bill to Make Bitcoin a State Investment appeared first on TheCoinrise.com .