Yesterday, Bitcoin (BTC) experienced a significant drop below the crucial $40,000 support level – the first such occurrence in 50 days. The question on everyone’s lips: will the downtrend continue? The impending $4.5 billion BTC monthly options expiry scheduled for January 26 is poised to play a pivotal role in determining the persistence of the ongoing downtrend. Interestingly, despite Bitcoin’s recent decline, the U.S. stock market achieved an all-time high on January 22. This discrepancy suggests that the factors influencing Bitcoin’s performance might not be directly tied to the broader macroeconomic landscape.
What to Watch Out for Today
1. Mt. Gox Crypto Compensation Coming Soon?: Victims of the Mt. Gox exchange collapse may finally receive compensation, with circulating emails hinting at BTC/BTH repayments. The collapse in 2014 resulted in the loss of 850,000 Bitcoins worth $272 million, now valued at $33.9 billion. Speculation surrounds the potential impact on Bitcoin’s price, with some expressing positive views on regulatory reinforcement, particularly in light of the swift and regulated response to the well-known collapse of the FTX crypto exchange.
2. BIS Unveils Tokenization and CBDC Privacy Projects: The Bank for International Settlements (BIS) Innovation Hub introduces ‘Project Promissa’, a collaboration for digital tokenized promissory notes. Simultaneously, Project Aurum focuses on retail central bank digital currency (CBDC) privacy, intending to advance central banks’ understanding of privacy in CBDC systems. Both initiatives aim to leverage blockchain for financial instruments and privacy, reflecting growing interest and innovation in CBDCs.
3. Trump Reiterates Opposition to CBDCs: Donald Trump emphasizes his stand against CBDCs, crediting crypto-friendly but CBDC-opposed candidate Vivek Ramaswamy for influencing this stance. Trump emphasized that a CBDC could pose a threat to freedom by giving the federal government control over money. While CBDCs are not central in the 2024 U.S. presidential race, recent candidate withdrawals may lessen crypto’s prominence in discussions. Trump’s pledge against CBDCs aligns with a broader Republican sentiment, potentially impacting the crypto regulatory landscape.
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