Crypto prices retreated in the past 24 hours after Jerome Powell insisted that the Federal Reserve would not be in a hurry to cut interest rates this month. Bitcoin price dropped to $96,000, while the market cap of all coins fell to $3.15 trillion. So, let’s explore what happened in the crypto industry in the last 24 hours.
Trump World Liberty Finance Launches Strategic Token Reserve
World Liberty Finance, the crypto project associated with Donald Trump, launched a strategic token reserve as it takes advantage of the growing industry. Arkham data shows that the network has already invested in tokens like Tron, Ethereum, Chainlink, Ondo, and AAVE.
Trump Meda, the parent company of TruthSocial, has also hinted that it will get more into the crypto industry. It has already applied to trademark investment products that track Bitcoin and other assets.
Trump Hires Brian Quintenz to Lead CFTC Crypto Division
Another notable crypto story was that Donald Trump hired Brian Quintenz to be the crypto head at the CFTC. This is notable since Quintenz is the current head of a16z, the venture capital firm run by Andressen Horowitz. He has led investments in tens of crypto projects like Alchemy Pay, Coinbase, Aptos, Avalanche, Arweave, and Dfinity, the parent of Internet Computer.
Trump has also appointed other pro-crypto executives like Paul Atkins to lead the SEC and David Sacks as the AI and crypto czar.
Bitcoin and Ethereum ETF See Outflows
The other key crypto news was that spot, and Bitcoin ETFs had outflows for the second straight day. All Bitcoin ETFs had outflows of $56 million on Tuesday, a day after shedding $186 million. These funds now have cumulative inflows of $40 billion.
Spot Ethereum ETF inflows rose by $12.58 million, bringing the total inflows to about $3.17 billion. All these funds have over $9.8 billion in assets. That is a sign that Wall Street is largely interested in Bitcoin funds.
Goldman Sachs Buys Crypto ETFs
Meanwhile, Goldman Sachs, the giant Wall Street company, remains upbeat on cryptocurrencies. It boosted its investment in spot Bitcoin ETFs to $1.5 billion and its ETH ETFs by $22 million to $476 million. This is a sign that the company believes that these coins will continue doing well in the long term.
The other top Wall Street companies that have invested in these coins are Susquehanna, Fidelity, Citadel, and Jane Street.
US Inflation Data and Powell Statement
Bitcoin and other crypto coins may have volatility when the US publishes the January inflation report. A softer-than-expected headline and core inflation figure will push them higher since they will point to a more dovish Fed.
Jerome Powell, the Fed chair, will also testify before a House committee. In his Senate meeting, he noted that the bank was not in a hurry to slash interest rates since inflation is still high.
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