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Ripple Invests in Bitwise’s Rebranded XRP ETP Amid Surging Demand

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Ripple Invests in Bitwise’s Rebranded XRP ETP Amid Surging Demand

In a significant development for the cryptocurrency investment landscape, Bitwise Asset Management announced the rebranding of its European XRP exchange-traded product (ETP), now named the Bitwise Physical XRP ETP (ticker: GXRP). Ripple, the blockchain infrastructure giant behind XRP, revealed plans to invest in the newly branded product.

This move underscores the increasing demand for institutional-grade crypto offerings and highlights XRP’s pivotal role in the digital asset ecosystem, valued at over $80 billion in market capitalization.

Also read: Polter Finance Halts Operations After $12M Flash Loan Hack

Why the Rebranding Matters

The rebranding of the ETP, formerly known as the ETC Group Physical XRP ETP, aligns with Bitwise’s strategic focus on its European product suite.

  • Enhanced Market Positioning: As part of the rebrand, Bitwise aims to fortify its presence in Europe by emphasizing institutional-quality crypto products.
  • Strong Regulatory Backing: Issued under a prospectus approved by Germany’s BaFin (Federal Financial Supervisory Authority), the ETP provides secure, compliant exposure to XRP for European investors.

Hunter Horsley, CEO and Co-Founder of Bitwise, remarked, “XRP and the XRP Ledger are among the most familiar and trusted blockchains in crypto, with a 10-year track record of reliability. We’re thrilled to provide access through this institutional-quality product.”

Ripple’s Strategic Investment

Ripple’s decision to invest in the Bitwise Physical XRP ETP reflects its confidence in the product and the broader utility of XRP. CEO Brad Garlinghouse emphasized the growing appetite for crypto-backed investment vehicles, particularly as regulatory clarity in the U.S. has improved.

“As one of the most valuable, liquid, and utility-driven digital assets, XRP stands out as a cornerstone for those seeking access to assets that are resilient and have real-world utility,” Garlinghouse said.

Ripple’s support further solidifies XRP’s position as a key player in cross-border remittances, institutional DeFi applications, and real-world tokenization.

XRP: A Cornerstone of Crypto Innovation

XRP, the fifth-largest cryptocurrency by market cap, has seen a resurgence in popularity in 2024. This growth is driven by its expanding use cases on the XRP Ledger (XRPL), including:

  1. Cross-Border Payments: XRP’s speed and low transaction costs make it a favored choice for international remittances.
  2. Institutional DeFi: The XRPL is increasingly used for decentralized finance applications tailored for enterprises.
  3. Tokenization: Real-world assets like real estate and financial instruments are being tokenized on the XRPL, showcasing its versatility.

These developments have strengthened XRP’s reputation as a digital asset with tangible utility, distinguishing it from speculative tokens.

The Evolution of Bitwise in Europe

Bitwise has been making waves in Europe’s crypto investment scene, particularly after acquiring ETC Group in August 2024. This acquisition brought a diverse portfolio of crypto ETPs under Bitwise’s management, bolstering its presence in the region.

Key milestones include:

  • Expanding Product Line: The Bitwise Aptos Staking ETP launched on the SIX Swiss Exchange on November 19, 2024.
  • Upcoming U.S. Offerings: Bitwise recently filed a Form S-1 with the U.S. SEC for an XRP spot ETF, signaling its intent to dominate the institutional crypto market.
  • $10 Billion Milestone: Bitwise surpassed $10 billion in total client assets this year, a testament to its growing influence.

Horsley highlighted Bitwise’s commitment to delivering innovative and secure investment solutions, stating, “Our European products integrate seamlessly into professional portfolios while ensuring robust security through offline cold storage with regulated custodians.”

Why European Investors Are Turning to ETPs

Europe has emerged as a fertile ground for crypto investment products, thanks to favorable regulations and high demand from retail and institutional investors.

The Bitwise Physical XRP ETP offers several advantages:

  1. Accessibility: Listed on Xetra, Europe’s most liquid ETF trading platform, the ETP is accessible to retail and institutional investors alike.
  2. Security: Assets are held in cold storage by regulated custodians, ensuring a high level of protection.
  3. Transparency: Investors benefit from a redemption feature, providing confidence in the product’s underlying value.

These features make the ETP an attractive option for those looking to gain exposure to XRP without directly managing cryptocurrency wallets.

Ripple and Bitwise: A Synergistic Partnership

Ripple’s investment in the rebranded XRP ETP highlights a shared vision between the two companies.

  • For Ripple: The partnership allows the company to extend XRP’s reach, particularly in the European market, where demand for institutional crypto products is growing.
  • For Bitwise: Ripple’s endorsement boosts the credibility of the GXRP product, potentially attracting more investors.

This collaboration exemplifies how blockchain companies and asset managers can work together to advance the adoption of crypto assets.

What Lies Ahead for XRP and Crypto ETPs

With Bitwise’s rebranding and Ripple’s backing, the future looks promising for XRP-focused investment products. Key trends to watch include:

  1. Increased Institutional Adoption: As regulatory clarity improves, more institutions are expected to add crypto ETPs to their portfolios.
  2. Diversification of Offerings: Bitwise plans to launch additional crypto ETPs, potentially expanding into staking, DeFi, and other niche markets.
  3. Global Expansion: Both Ripple and Bitwise are likely to explore new markets, leveraging XRP’s utility and Bitwise’s expertise in asset management.

A Milestone for Crypto Investment

The rebranding of the Bitwise Physical XRP ETP marks an important moment in the evolution of crypto investment products. By combining regulatory compliance, institutional-grade security, and Ripple’s endorsement, the product is well-positioned to meet the needs of a diverse range of investors.

As the demand for crypto-backed investment vehicles grows, initiatives like this are paving the way for broader acceptance of digital assets in traditional finance. Ripple and Bitwise’s partnership could set a new standard for collaboration between blockchain innovators and asset managers, driving the next wave of crypto adoption.

Also read: The $45 Million Mystery: Trump Election Bets Stir the Crypto Market—A Political and Financial Game Changer?

Kraken to Shut Down NFT Marketplace, Focus on New Initiatives

Degen Team
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Kraken to Shut Down NFT Marketplace, Focus on New Initiatives

Kraken, one of the world’s leading cryptocurrency exchanges, has announced the shutdown of its nonfungible token (NFT) marketplace as part of a strategic shift. The decision, confirmed by the company on November 26, marks the end of its NFT platform, which will fully cease operations by February 27, 2025.

This move highlights a changing landscape in the NFT market, with declining trading volumes and increasing competition prompting some platforms to reconsider their focus.

Also read: Polter Finance Halts Operations After $12M Flash Loan Hack

Timeline of the Shutdown

Kraken has outlined a phased shutdown of its NFT marketplace to ensure a smooth transition for its users:

  • November 27, 2024: Users can no longer list, bid, or sell NFTs on the platform. Asset withdrawals will remain operational.
  • February 27, 2025: The marketplace will be completely shut down.

The company has assured users of its support in moving their NFTs to Kraken Wallet or any self-custodial wallet of their choice.

“Clients have been informed of the changes, and our team will support them as they transfer their NFTs to a secure storage solution,” a Kraken representative stated.

A Short-Lived Experiment in NFTs

Kraken first announced plans to enter the NFT space in December 2021, during the peak of NFT mania. By November 2022, the platform launched in beta, aiming to capitalize on the burgeoning market.

Despite initial enthusiasm, the marketplace struggled to maintain momentum as the broader NFT market cooled. While notable collections like CryptoPunks saw occasional spikes in trading volume, overall weekly NFT sales have not surpassed $200 million since April 2024, according to The Block’s Data Dashboard.

This prolonged stagnation played a significant role in Kraken’s decision to exit the NFT space and focus on more promising opportunities.

The Broader NFT Market Slump

The NFT market has faced significant challenges throughout 2024. After a meteoric rise in 2021 and 2022, the market’s growth slowed amid shifting investor interest, regulatory uncertainties, and economic pressures.

Key indicators of the market’s decline include:

  • Decreasing Trading Volumes: Weekly NFT trading volumes peaked in early 2024 but have consistently remained below $200 million since April.
  • Lack of New Entrants: Fewer groundbreaking projects have emerged, and many established collections have seen reduced activity.
  • Market Consolidation: Platforms like OpenSea and Blur continue to dominate, leaving smaller players like Kraken’s marketplace struggling to compete.

While certain collections like CryptoPunks have retained interest, the overall market downturn has led to consolidation and, in some cases, closures like Kraken’s.

Kraken’s Strategic Shift

The closure of the NFT marketplace is part of Kraken’s broader strategy to reallocate resources to new and potentially more lucrative ventures.

“We’ve made the decision to close our NFT marketplace so we can shift more resources into new products and services, including unannounced initiatives in development,” Kraken stated.

Though the company has not disclosed specific details about its upcoming projects, industry speculation suggests Kraken may be exploring:

  • Advanced DeFi Solutions: Decentralized finance continues to be a major area of innovation in the crypto space.
  • Institutional Crypto Products: As institutional interest grows, Kraken could focus on tools tailored for large-scale investors.
  • Regulatory-Compliant Offerings: With increasing scrutiny on cryptocurrency exchanges, Kraken may be investing in compliance-driven solutions to secure its position in regulated markets.

What This Means for Users

Kraken’s NFT marketplace users have until February 27, 2025, to withdraw their assets. The company has recommended using Kraken Wallet or transitioning to a self-custodial wallet.

For NFT creators and traders, the shutdown means fewer options for listing and trading assets. However, popular platforms like OpenSea and Blur continue to dominate the market, providing alternatives for those impacted by Kraken’s exit.

The Future of NFTs in a Changing Landscape

While the NFT market has faced significant headwinds, many believe the technology still holds promise beyond its current use cases. Potential areas for growth include:

  • Gaming: NFTs are increasingly integrated into gaming ecosystems, offering players ownership of in-game assets.
  • Art and Collectibles: Digital art remains a strong use case, with creators exploring innovative ways to leverage blockchain technology.
  • Real-World Applications: NFTs are being used for ticketing, real estate, and identity verification, expanding their utility beyond digital collectibles.

Kraken’s exit may signal a need for greater innovation and differentiation in the NFT space, particularly as the market matures.

Kraken’s Role in the Crypto Ecosystem

Despite the closure of its NFT marketplace, it remains a significant player in the cryptocurrency ecosystem. Founded in 2011, the platform has consistently been at the forefront of industry developments, offering a wide range of services, including spot trading, futures, and staking.

By redirecting resources to new initiatives, Kraken aims to stay competitive and adapt to the evolving needs of the crypto community.

Final Thoughts

Kraken’s decision to shut down its NFT marketplace reflects the challenges of navigating a rapidly changing market. While NFTs captured global attention during their peak, the current downturn highlights the need for innovation and adaptability.

As Kraken focuses on its next chapter, the industry will be watching closely to see how the company leverages its resources to shape the future of crypto. For NFT enthusiasts, the closure serves as a reminder of the sector’s volatility and the importance of diversification in a nascent and unpredictable market.

Also read: The $45 Million Mystery: Trump Election Bets Stir the Crypto Market—A Political and Financial Game Changer?

Justin Sun’s $30M Investment in Trump’s Crypto Platform Sparks Controversy

Degen Team
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Justin Sun’s $30M Investment in Trump’s Crypto Platform Sparks Controversy

As Donald Trump prepares to assume office in January 2025, his crypto platform, World Liberty Financial (WLFI), is already making waves. The latest buzz? A $30 million investment from blockchain mogul Justin Sun, the founder of Tron, signaling a new chapter in Trump’s business ventures and raising questions about political and financial entanglements.

Also read: The $45 Million Mystery: Trump Election Bets Stir the Crypto Market—A Political and Financial Game Changer?

A Crypto Power Play: Justin Sun Joins WLFI

On Monday, Justin Sun, known for bold moves in the blockchain world (including purchasing a duct-taped banana artwork for $6.2 million), announced his investment in WLFI. In a post on X, Sun celebrated his role as WLFI’s largest investor, stating:

“The U.S. is becoming the blockchain hub, and Bitcoin owes it to @realDonaldTrump! TRON is committed to making America great again and leading innovation.”

WLFI, Trump’s crypto platform, positions itself as a digital asset bank. It enables users to borrow, lend, and invest in cryptocurrencies, anchored by its native token, WLFI. Sun’s investment pushes WLFI past a critical $30 million threshold, unlocking a significant revenue share for Trump’s LLC.

Trump’s Growing Crypto Empire

Launched last month, WLFI aims to raise $300 million at a $1.5 billion valuation during its initial token sale. The platform has already sold over $51 million worth of WLFI tokens, with 20,400 unique wallets holding the asset.

Trump’s involvement in WLFI is structured to minimize liability while maximizing profit. His company, DT Marks DEFI LLC, holds a 75% revenue share of all earnings exceeding $30 million. The rapid success of WLFI exemplifies how Trump’s ventures in the digital economy could surpass the profitability of his real estate empire.

Crypto Meets Politics: Implications for Trump’s Administration

The timing of Sun’s investment has drawn scrutiny, particularly as Trump finalizes key appointments for his administration. Over the weekend, rumors swirled that Brian Armstrong, CEO of Coinbase, met with Trump to discuss potential crypto-friendly regulatory roles.

Meanwhile, the impending resignation of SEC Chair Gary Gensler, a staunch critic of the crypto industry, has buoyed market optimism. Gensler’s departure paves the way for a Trump-appointed SEC leader, potentially shifting the regulatory landscape.

Under Gensler’s leadership, the SEC aggressively pursued enforcement actions against major crypto firms, including Binance, Coinbase, and Tron. The latter case accused Justin Sun of market manipulation and unregistered securities offerings. With a new SEC chair, industry insiders speculate these cases could be reconsidered.

WLFI’s Unique Business Model: A New Era of Political Enrichment?

Unlike Trump’s previous ventures—hotels and office spaces—crypto presents a more direct revenue stream. Investments like Sun’s $30 million can flow almost instantly, with minimal overhead. Critics argue this setup blurs the line between public service and private enrichment.

During Trump’s first term, questions about foreign government spending at his Washington, D.C., hotel raised concerns over violations of the Constitution’s Emoluments Clause. WLFI’s model introduces a new dynamic, where political allies or foreign entities could potentially inject millions into Trump-branded ventures.

The Crypto Community’s Role in Trump’s Campaign

Trump’s re-election campaign received substantial support from the crypto industry. Notable donors included Gemini co-founders Tyler and Cameron Winklevoss, along with executives from firms battling SEC lawsuits. Their contributions underscore the industry’s hopes for a more favorable regulatory environment under Trump’s leadership.

Sun’s investment and the support of crypto leaders highlight the industry’s growing influence in American politics. The blockchain community sees Trump’s administration as an opportunity to cement the U.S. as a global crypto hub.

Justin Sun: A Controversial Figure in Crypto

Sun’s involvement adds another layer of intrigue to WLFI’s story. Known for his flamboyant marketing tactics and high-profile purchases, Sun has faced legal challenges in the crypto world. In 2023, the SEC charged him with fraud and unregistered securities violations related to Tron and BitTorrent.

Despite these controversies, Sun continues to position himself as a visionary in blockchain innovation. His role as an advisor to WLFI could shape the platform’s strategy, leveraging his expertise to drive adoption and growth.

The Path Ahead for WLFI and U.S. Crypto Policy

As WLFI gains momentum, its impact extends beyond Trump’s business interests. The platform represents a broader trend of crypto and fintech intersecting with political power.

With Sun’s investment and Trump’s political capital, WLFI could become a flagship project in the crypto space. However, its success will depend on navigating regulatory challenges and public skepticism about the ethics of Trump’s dual roles as president and business figurehead.

As Trump’s administration begins, the world will be watching to see how WLFI and U.S. crypto policy evolve—and whether this bold experiment in blending business and politics can succeed.

Key Takeaways

  • Justin Sun’s $30M investment in WLFI solidifies the platform’s financial foundation and highlights its potential as a major player in crypto banking.
  • Trump’s crypto ventures represent a departure from traditional business models, raising questions about political and financial ethics.
  • With a Trump-appointed SEC chair, the regulatory environment for crypto could shift dramatically, impacting major cases and industry growth.

The rise of WLFI signals a new chapter for crypto, politics, and the global financial system—one shaped by bold investments, ambitious visions, and unprecedented intersections of power and technology.

Also read: Polter Finance Halts Operations After $12M Flash Loan Hack

Bitcoin’s Dip to $93K: Analysts Predict a Final “Flush Before the Rush” to Six Figures

Degen Team
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Bitcoin’s Dip to $93K: Analysts Predict a Final “Flush Before the Rush” to Six Figures

The cryptocurrency market faced turbulence this week as Bitcoin’s price dropped below $93,000, triggering concerns among traders. Despite the nearly 7% decline from its recent all-time high of $99,645, analysts suggest this dip is a temporary correction and a potential “last flush” before Bitcoin makes a historic surge past the $100,000 mark.

Also read: Polter Finance Halts Operations After $12M Flash Loan Hack

Bitcoin’s Historical Patterns Signal Optimism

On Nov. 26, Bitcoin briefly hit an intraday low of $92,775 before rebounding to trade around $94,600. Analysts are interpreting this pullback as part of Bitcoin’s cyclical pattern of sharp gains followed by corrections.

“Bitcoin is consolidating ahead of the long Thanksgiving weekend,” said Markus Thielen, founder and CEO of 10x Research. He emphasized that such corrections are typical during overbought technical conditions and often serve to stabilize the market.

Charlie Sherry, head of finance and crypto analysis at BTC Markets, echoed this sentiment, explaining:

“Bitcoin’s recent drop to $93,000 is best understood as part of its historical pattern of sharp gains followed by healthy corrections. These pullbacks allow the market to consolidate gains and reduce leverage before advancing further.”

The Final Flush Before the Rush?

Many traders are calling this drop a necessary shakeout, or “flush before the rush,” as described by popular analyst Bluntz. Such movements, they argue, are part of a healthy bull market.

Sherry pointed out that Bitcoin’s dip to $92,600 aligns with past trends, suggesting that this correction could pave the way for Bitcoin to finally cross the $100,000 threshold. However, he warned of possible further downside, noting:

“If the pullback deepens, BTC could potentially test the $88,000 to $90,000 range, representing key support levels. A more significant correction of 20% to 30% might bring Bitcoin closer to $80,000, but this remains consistent with prior bull market behavior.”

Market Sentiment Remains Strong

Despite the short-term volatility, the long-term outlook for Bitcoin remains overwhelmingly positive. Polymarket, a blockchain-based prediction platform, shows a 72% probability of Bitcoin hitting $100,000 before Christmas.

“I like those odds,” said Sherry, adding that the dip could present an excellent buying opportunity for new investors.

Macroeconomic and Regulatory Factors in Play

Several macroeconomic conditions could also influence Bitcoin’s trajectory. Thielen noted that strong U.S. economic growth data might lead the Federal Reserve to maintain interest rates, which could dampen high-risk assets like Bitcoin in the short term.

However, long-term bullish momentum remains intact, especially with anticipated regulatory changes under the incoming Trump administration. CK Zheng, co-founder of ZX Squared Capital, predicted that Bitcoin would break $100,000 within months, supported by a more crypto-friendly regulatory environment.

“The new Trump government will push for crypto-friendly rules and regulations, likely driving institutional investment and adoption,” Zheng said.

Resistance Levels and Investor Behavior

Analysts have identified $100,000 as a critical psychological resistance level. At this milestone, some long-term holders may choose to reduce their Bitcoin exposure, potentially leading to temporary consolidation.

Zheng described the recent pullback as a “healthy” market movement:

“A 20% pullback will provide a great entry point for new long-term investors. We believe the extent of this correction will be shallow, setting the stage for further gains.”

Investor Strategies Amidst Volatility

Traders are approaching Bitcoin’s current price movement with caution but optimism. Many see the current dip as an opportunity to accumulate. Analysts advise monitoring key support levels in the $88,000 to $90,000 range and watching for buying signals during periods of low volatility.

Thielen added that Bitcoin often experiences reduced activity toward the end of the month, which can help stabilize prices before a renewed surge.

Bitcoin’s Path to $100,000 and Beyond

As BTC inches closer to six figures, analysts agree on a bullish outlook for 2024 and 2025. The anticipated milestone could fuel further institutional adoption, increased media attention, and renewed interest from retail investors.

“Despite short-term headwinds, we remain confident that Bitcoin will surpass the $100,000 milestone within the coming weeks,” said Thielen.

Broader Implications for the Crypto Market

Bitcoin’s performance often sets the tone for the broader cryptocurrency market. A surge past $100,000 could ignite rallies in other digital assets, leading to a new wave of market enthusiasm.

Additionally, regulatory clarity under a new U.S. administration could provide the framework for sustainable growth across the crypto ecosystem.

Key Takeaways

  1. The dip below $93,000 is seen as a temporary correction and part of its historical pattern of pullbacks before major gains.
  2. Analysts predict BTC will surpass $100,000 before the end of the year, supported by macroeconomic factors and anticipated regulatory changes.
  3. Investors are advised to monitor key support levels and consider the current dip as a potential entry point.
  4. The broader crypto market could benefit significantly from BTC’s milestone achievement, driving adoption and innovation in the space.

As the year draws to a close, BTC’s journey toward six figures is being closely watched by traders and analysts alike. The “flush before the rush” could very well mark the start of a historic rally in the cryptocurrency market.

Also read: The $45 Million Mystery: Trump Election Bets Stir the Crypto Market—A Political and Financial Game Changer?

Leak Reveals Wall Street’s Bitcoin and Crypto Surge Set for 2025

Degen Team
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Leak Reveals Wall Street’s Bitcoin and Crypto Surge Set for 2025

The cryptocurrency market is riding an unprecedented wave of optimism, fueled by the election of Donald Trump and rumors of significant developments in the financial sector. Bitcoin has surged to near $100,000, while the broader crypto market has swelled to $3.5 trillion.

Now, a major leak has hinted at Wall Street’s plans to deepen its engagement with the crypto industry in 2025. These include a potential Solana spot ETF, a softening stance by the SEC, and a new, crypto-friendly direction under the incoming administration.

Also read: Polter Finance Halts Operations After $12M Flash Loan Hack

Bitcoin’s Ascent Toward $100,000

Since Trump’s victory earlier this month, Bitcoin has soared, nearing the long-awaited $100,000 milestone. Analysts attribute this to a convergence of factors, including a bullish outlook on a Trump administration’s crypto policy, the approval of spot Bitcoin ETFs earlier this year, and rising interest from institutional investors.

One major player driving the surge is BlackRock, whose landmark Bitcoin ETF approval in January 2024 paved the way for institutional investment in crypto. Analysts are now projecting Bitcoin’s market value could reach $30 trillion as more firms seek regulatory approval for similar financial instruments.

The Solana ETF: A Game-Changer in the Making?

The buzz around Bitcoin has also boosted interest in altcoins like Solana, Ethereum, and Cardano. Solana, in particular, has seen a double-digit price surge following rumors of a spot ETF in the works.

A leak from SEC insiders has revealed that discussions around a Solana ETF are “progressing,” with applications moving through critical approval stages. VanEck, Bitwise, 21Shares, and Canary Capital are reportedly leading the charge, building on the momentum of Bitcoin and Ethereum ETFs approved earlier this year.

Eleanor Terrett, a Fox Business reporter, shared insights on social media, indicating there’s a “good chance” that exchanges could soon file the next steps for Solana ETF approval. However, skepticism remains. “The big question is whether the SEC will allow these to proceed or force withdrawals as they have in the past,” noted Eric Balchunas of Bloomberg Intelligence.

A Changing Guard at the SEC

The optimism surrounding crypto ETFs and broader financial instruments has been bolstered by a significant shift in the SEC’s leadership. Gary Gensler, the outgoing SEC chair often criticized for his hostile stance toward cryptocurrency, announced his resignation shortly after Trump’s electoral win.

With a Trump-appointed replacement expected to take the helm, many believe the SEC’s approach to crypto regulation could see a dramatic shift. The new administration’s stance is anticipated to be more open to blockchain innovation and crypto-friendly financial products, potentially removing hurdles that have stifled the industry for years.

This leadership change has turbocharged investor sentiment. “A crypto-friendly SEC chair could be the missing piece to unlock broader adoption of blockchain technologies in traditional finance,” said a market analyst.

Wall Street’s Growing Crypto Appetite

Wall Street’s increasing embrace of crypto isn’t limited to Bitcoin. Ethereum, which secured its own spot ETF approval in July, has also attracted significant attention. However, its funds have yet to generate the same enthusiasm as Bitcoin ETFs, leaving room for growth in the market.

Meanwhile, the success of Bitcoin ETFs has inspired traders to bet on other cryptocurrencies. XRP, Solana, and Cardano have outpaced Bitcoin’s recent gains, signaling a diversification in investor interest. The combined impact has propelled the market into new territory, with traders speculating on what lies ahead.

Trump Administration and Crypto Policy: What to Expect

Trump’s return to the White House has reignited discussions about crypto regulation in the United States. During his campaign, Trump signaled a willingness to explore innovative financial strategies, including a strategic Bitcoin reserve. This policy direction aligns with the pro-crypto sentiment of his economic team, including Treasury Secretary nominee Scott Bessent.

Observers expect the Trump administration to implement reforms that make the U.S. a more attractive hub for crypto innovation. A more permissive SEC could open the door for other crypto ETFs, giving institutional investors greater access to the market.

However, Trump’s approach will likely aim to balance innovation with oversight, ensuring the crypto sector adheres to anti-money laundering (AML) and consumer protection laws.

The Road to 2025: Challenges Ahead

Despite the optimism, hurdles remain for crypto’s next big leap. The SEC’s evolving stance, while promising, is not guaranteed to lead to blanket approval for crypto ETFs. Regulators may still enforce stringent requirements, particularly for newer digital assets like Solana.

Moreover, skeptics caution against over-optimism, noting that the crypto market remains vulnerable to volatility and external pressures. Macroeconomic factors, including interest rate policies and geopolitical tensions, could also influence crypto’s trajectory.

Nonetheless, many industry leaders view 2025 as a pivotal year for crypto adoption. “The groundwork laid by Bitcoin and Ethereum ETFs could create a domino effect, leading to more robust participation from institutional investors,” said a blockchain consultant.

What’s Driving Institutional Interest?

Wall Street’s growing interest in crypto is fueled by several factors:

  1. Regulatory Clarity: The approval of Bitcoin and Ethereum ETFs has provided a roadmap for institutional investment in crypto.
  2. Mainstream Acceptance: Increasing adoption of blockchain technologies by major corporations has validated the sector’s potential.
  3. Inflation Hedge: With traditional markets facing economic uncertainties, crypto is increasingly seen as a hedge against inflation.

These trends are expected to deepen as more financial products gain regulatory approval.

The $100,000 Bitcoin Dream

For now, the crypto community remains focused on Bitcoin’s race to $100,000—a symbolic milestone that would mark a new era for digital currencies. Analysts believe the combination of institutional interest, favorable regulations, and Trump’s crypto-friendly policies could propel Bitcoin to unprecedented heights.

“Bitcoin at $100,000 is not just a dream; it’s a reflection of the maturing crypto market,” said a financial analyst. “With Wall Street and Washington both warming up to crypto, the sky’s the limit.”

Looking Ahead: A New Crypto Era?

As 2025 approaches, the cryptocurrency market is poised for transformative change. With Wall Street ramping up its crypto investments, a pro-crypto administration taking charge, and new financial instruments on the horizon, the stage is set for a historic evolution in digital finance.

For Bitcoin, Solana, and the broader crypto market, the next year promises to be a defining chapter—one that could forever alter the landscape of global finance.

Also read: The $45 Million Mystery: Trump Election Bets Stir the Crypto Market—A Political and Financial Game Changer?

Ripple’s Legal Chief Charts Path for SEC Crypto Reforms Under New Leadership

Degen Team
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Ripple’s Legal Chief Charts Path for SEC Crypto Reforms Under New Leadership

Ripple’s Chief Legal Officer, Stuart Alderoty, has unveiled a comprehensive blueprint for the U.S. Securities and Exchange Commission (SEC) as it transitions to new leadership following the resignation of Chair Gary Gensler. With a focus on fostering innovation, rebuilding public trust, and establishing clear regulations, Alderoty’s vision could redefine the SEC’s approach to cryptocurrency.

Also read: Polter Finance Halts Operations After $12M Flash Loan Hack

Gensler’s Departure: A Turning Point for Crypto Regulation

Gary Gensler, who has chaired the SEC since April 2021, announced his resignation effective January 20, 2025, coinciding with the inauguration of President-elect Donald Trump. Gensler’s tenure was marked by aggressive enforcement actions against the cryptocurrency industry, including high-profile lawsuits targeting major players like Binance, Coinbase, and Ripple Labs.

Under Gensler’s leadership, the SEC pursued Ripple Labs in a landmark case, alleging that XRP tokens were sold as unregistered securities. The lawsuit, filed in December 2020, became a flashpoint for the industry, with Ripple emerging as a symbol of resistance against regulatory overreach.

Gensler’s departure has been welcomed by many in the crypto space, with expectations that the incoming administration will adopt a more innovation-friendly stance.

Alderoty’s Vision: Key Steps for SEC Reform

In a series of posts on social media platform X (formerly Twitter), Alderoty outlined his recommendations for the SEC under its new leadership. His proposals aim to address longstanding issues in crypto regulation while promoting collaboration and accountability.

1. End Non-Fraud Crypto Litigation

Alderoty urged the SEC to immediately halt lawsuits against cryptocurrency companies that do not involve fraud. He argued that these legal battles have stifled innovation and distracted from the commission’s core mission of investor protection.

2. Retain Crypto-Friendly Commissioners

The Ripple legal chief called for SEC Commissioners Mark Uyeda and Hester Peirce, known for their pro-crypto views, to remain in their roles. Alderoty highlighted their importance in fostering balanced and informed decision-making within the agency.

3. Develop Clear Rules with Congress

Collaboration with Congress and other financial regulators is central to Alderoty’s plan. He emphasized the need for straightforward crypto regulations, developed through dialogue rather than unilateral SEC action. This includes refraining from automatically assuming jurisdiction over digital assets.

4. Increase Transparency

Alderoty proposed overhauling the SEC’s Freedom of Information Act (FOIA) process to enhance transparency. This step, he said, would help restore public trust and accountability within the agency.

5. Abandon Legacy Frameworks

The Ripple legal officer recommended discarding outdated guidance, including the 2018 Hinman speech and the 2019 framework for digital asset analysis, which have been criticized for their lack of clarity and inconsistent application.

6. Address Past Missteps

Alderoty called for a thorough review of the SEC’s past actions through its Office of Inspector General. He believes this step is crucial for rebuilding confidence in the agency’s integrity.

Ripple’s Blueprint for the Future

Ripple’s legal battle with the SEC has been a defining moment for the crypto industry. While the case remains unresolved, Alderoty highlighted the resilience and courage of Ripple’s leadership and legal team in navigating the regulatory storm.

“Ripple provided the blueprint to defeat Gary Gensler’s inexplicable war on crypto,” Alderoty wrote on X. He praised Ripple CEO Brad Garlinghouse, co-founder Chris Larsen, and the XRP community, affectionately known as the “XRP Army,” for their unwavering support during the legal battle.

Ripple’s fight against the SEC has set a precedent for other crypto companies, emphasizing the need for clear and consistent regulatory guidelines. Alderoty’s recommendations build on Ripple’s experiences, offering a roadmap for the SEC to adopt a more balanced approach to crypto regulation.

What’s Next for the SEC?

The transition to new leadership at the SEC represents an opportunity for the agency to reset its relationship with the crypto industry. President-elect Trump is expected to nominate a new chair with a more favorable view of blockchain technology and digital assets.

Analysts predict that the incoming administration will prioritize fostering innovation while maintaining safeguards against fraud and misuse. The appointment of crypto-friendly figures to key regulatory positions could signal a new era of collaboration and progress.

The Ripple Case: A Catalyst for Change

The SEC’s lawsuit against Ripple Labs has been closely watched as a bellwether for crypto regulation in the United States. The case revolves around whether XRP, Ripple’s native token, should be classified as a security.

Ripple has argued that the SEC’s approach is inconsistent and lacks clear legal grounding. The outcome of the case could have far-reaching implications for the broader crypto industry, influencing how digital assets are regulated in the future.

Alderoty’s proposals for reform reflect lessons learned from this protracted legal battle. By advocating for transparency, accountability, and collaboration, he hopes to prevent similar conflicts from stifling innovation in the years ahead.

The Crypto Community’s Optimism

Gensler’s resignation and the possibility of regulatory reforms have sparked optimism within the crypto community. Many believe that a fresh approach to crypto regulation could unlock new opportunities for growth and innovation.

“This is an incredible moment for the industry,” Alderoty wrote. “We kept the door open long enough for the industry to survive and seize this opportunity.”

As the SEC transitions to new leadership, the crypto community is watching closely, hopeful that the next chapter will bring greater clarity, fairness, and collaboration.

A New Era for Crypto Regulation?

The SEC’s approach to cryptocurrency has long been a point of contention, with critics arguing that its enforcement-first strategy has hindered progress. Alderoty’s proposals, combined with the upcoming leadership change, offer a chance to reset the agency’s relationship with the industry.

If implemented, these reforms could pave the way for a more inclusive and innovation-friendly regulatory framework—one that balances the need for oversight with the potential of blockchain technology to transform the financial landscape.

For Ripple, the crypto industry, and the millions of investors who have bet on its success, the stakes couldn’t be higher. As Alderoty’s vision for reform takes shape, the SEC has an opportunity to build a foundation for sustainable growth and innovation in the digital age.

Also read: The $45 Million Mystery: Trump Election Bets Stir the Crypto Market—A Political and Financial Game Changer?

Coin Center Warns US Crypto Policies May Drive Innovators Away Despite Trump Victory

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Coin Center Warns US Crypto Policies May Drive Innovators Away Despite Trump Victory

The 2024 US presidential election has ushered in a new wave of optimism for the cryptocurrency industry, with Donald Trump’s victory signaling a potentially favorable stance on digital assets. However, non-profit advocacy group Coin Center has warned that entrenched regulatory policies could still deter crypto investors and developers, threatening innovation in the United States.

In a blog post on November 21, Coin Center’s Research Director Peter Van Valkenburgh outlined three significant threats to crypto users and developers in the US as the new administration prepares to take office in 2025.

Also read: Polter Finance Halts Operations After $12M Flash Loan Hack

Grave Threats to Crypto Under Existing Policies

While Trump’s return to the presidency has been perceived as a net positive for the crypto sector, Coin Center highlighted three persistent “surveillance issues” that could undermine progress:

  1. Tax Reporting Requirements
    Section 6050I of the US tax code mandates that individuals receiving $10,000 or more in cryptocurrency report the transaction to the Internal Revenue Service (IRS). Coin Center has labeled this requirement as unconstitutional, arguing that it infringes on privacy and discourages legitimate use of digital currencies.
  2. Sanctions on Tornado Cash
    Tornado Cash, a decentralized crypto mixer, has faced sanctions and criminal charges for allegedly facilitating unlicensed money transmission. Coin Center warns that the legal actions against Tornado Cash and its founder, Roman Storm, could set a dangerous precedent, penalizing developers of non-custodial services and stifling innovation in the blockchain space.
  3. Anti-Money Laundering (AML) Policies
    Overly stringent AML regulations remain a significant concern. Coin Center argues that these measures, which aim to prevent financial crimes, do little to deter criminals but disproportionately burden law-abiding users and developers.

Trump’s Pro-Crypto Stance: A Mixed Blessing

President Trump’s administration is widely expected to favor blockchain technology and digital assets, potentially appointing crypto-friendly regulators to key positions in the Securities and Exchange Commission (SEC) and the Treasury Department.

Van Valkenburgh noted that some controversial policies initiated under the outgoing administration could be frozen or abandoned, creating a more accommodating environment for crypto projects.

However, there is skepticism about whether the new administration will roll back sanctions or amend AML policies. The Department of Justice (DOJ), which prides itself on political independence, may continue pursuing ongoing cases against crypto entities like Tornado Cash, regardless of changes at the executive level.

Crypto Reporting Requirements Under Scrutiny

The $10,000 reporting mandate under Section 6050I has been a contentious issue. Critics argue that warrantless reporting to the IRS infringes on users’ privacy and could discourage adoption. Coin Center has challenged the constitutionality of this provision, stating that it undermines the decentralized and private ethos of blockchain technology.

“Overly broad reporting requirements risk alienating users and hindering the growth of legitimate crypto use cases,” said Van Valkenburgh.

Advocates hope that the Trump administration will address these concerns, fostering a regulatory environment that balances transparency with user privacy.

Sanctions and Their Ripple Effects

The sanctions on Tornado Cash have sparked intense debate in the crypto community. The platform, designed to enhance privacy by mixing cryptocurrency transactions, has been accused of facilitating money laundering. Roman Storm, the platform’s founder, faces criminal charges for unlicensed money transmission.

Coin Center warned that such actions could create a chilling effect on developers of decentralized tools. “If sanctions against Tornado Cash are upheld, it could discourage innovation and drive talented developers to jurisdictions with more favorable policies,” said Van Valkenburgh.

AML Policies: A Double-Edged Sword

Anti-Money Laundering policies are another area of concern. While these regulations are intended to curb illicit activities, Coin Center argues that they have been applied in ways that disproportionately target legitimate users and services.

“AML policies need to strike a balance,” Van Valkenburgh stated. “Excessive surveillance not only undermines user privacy but also risks pushing innovation offshore.”

Impact on Developers and Innovation

The uncertainty surrounding US crypto regulations has already caused some developers to seek opportunities abroad. Countries with clearer and more supportive frameworks, such as Switzerland and Singapore, have become attractive alternatives for blockchain innovators.

Coin Center emphasized the need for a collaborative approach, urging policymakers to engage with industry stakeholders to craft regulations that foster innovation while addressing legitimate concerns about security and compliance.

Call to Action for the Crypto Industry

As the Trump administration prepares to take office, Coin Center has called on the crypto industry to engage proactively with policymakers. Van Valkenburgh urged stakeholders to initiate conversations with the new administration early, emphasizing the importance of shaping policies that support growth and innovation.

“Don’t wait. Start knocking on doors from day one,” he advised. “It’s critical to ensure that the regulatory landscape is conducive to the continued development of this transformative technology.”

Balancing Regulation and Innovation

The debate over crypto regulations highlights the broader challenge of balancing oversight with innovation. While effective regulations are necessary to prevent abuse, overly restrictive policies could stifle progress and push the industry to relocate.

Coin Center’s warnings serve as a reminder that the future of crypto in the US depends on thoughtful, well-crafted policies that address risks without undermining the core principles of decentralization and privacy.

As the industry awaits the new administration’s approach, the stakes for the US crypto sector—and its global competitiveness—could not be higher.

Also read: The $45 Million Mystery: Trump Election Bets Stir the Crypto Market—A Political and Financial Game Changer?

Trump Nominates Pro-Crypto Scott Bessent as Treasury Secretary

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Trump Nominates Pro-Crypto Scott Bessent as Treasury Secretary

In a move that signals a potential pivot in US economic policy, President-elect Donald Trump has nominated Scott Bessent, a prominent hedge fund manager and cryptocurrency advocate, as Secretary of the Treasury. Bessent’s nomination underscores the administration’s growing interest in integrating digital assets into the nation’s economic framework.

The announcement, made late on November 22, has sparked widespread discussion among financial experts and the crypto community. If confirmed, Bessent will become the first openly gay Cabinet member in Trump’s administration, adding a historic dimension to the appointment.

Also read: Polter Finance Halts Operations After $12M Flash Loan Hack

Who Is Scott Bessent?

Born in Conway, South Carolina, in 1962, Scott Bessent is a Yale University graduate with a storied career in finance. He launched his financial journey at Brown Brothers Harriman before joining Kynikos Associates, a prominent short-selling hedge fund.

Bessent’s career gained significant attention in 1991 when he became a partner at Soros Fund Management. During his tenure, he played a key role in the firm’s legendary bet against the British pound, contributing to one of the most notable financial events of the 20th century.

After leaving Soros Fund Management in 2000, Bessent founded his own hedge fund, managing $1 billion in assets. His return to Soros Fund Management in 2011 as Chief Investment Officer further cemented his reputation as a financial visionary. In 2015, he founded Key Square Group, a global macro investment firm.

A Pro-Crypto Advocate in the Treasury

Bessent’s advocacy for cryptocurrencies positions him as a strong ally for the industry within the federal government. He has consistently expressed optimism about the potential of digital currencies to drive financial freedom and innovation.

His nomination aligns with Trump’s interest in creating a strategic Bitcoin Reserve, a concept aimed at leveraging Bitcoin as part of the nation’s economic strategy. Bessent has also emphasized the importance of fostering innovation in the financial sector while maintaining regulatory clarity.

This pro-crypto stance has been warmly received by many in the blockchain community. “Scott Bessent’s deep understanding of global markets and his open-minded approach to cryptocurrencies make him an excellent choice for Treasury Secretary,” said a leading blockchain analyst on X.

A Bipartisan Political Donor

Bessent’s political contributions reflect a bipartisan approach, demonstrating his willingness to support candidates from across the political spectrum. In 2000, he hosted a fundraiser for then-Vice President Al Gore’s presidential campaign. More recently, he contributed over $2 million to Trump’s campaign and provided critical economic policy guidance.

This balanced political engagement has earned him respect from both sides of the aisle, potentially smoothing the path for his Senate confirmation.

Bessent’s Economic Vision

As Treasury Secretary, he will face the monumental task of shaping the administration’s economic policies. His responsibilities will include implementing tax reforms, managing the nation’s debt, and overseeing financial regulations.

With his background in global macroeconomics, Bessent is expected to bring a forward-thinking approach to the Treasury Department. His expertise in investment and financial strategy could influence the government’s stance on emerging technologies, including blockchain and cryptocurrencies.

Bessent’s leadership may also provide clarity to crypto businesses navigating the regulatory landscape. His nomination has sparked hopes that the US will adopt policies encouraging innovation while maintaining safeguards against misuse.

Crypto’s Moment in the Spotlight

The crypto community has viewed Bessent’s nomination as a potential turning point for the industry. Advocates believe his appointment could lead to more nuanced regulations, balancing the need for oversight with the imperative to foster innovation.

One area where the secretary could make a significant impact is in creating a more supportive environment for blockchain startups. His global investment experience might also influence policies that encourage international collaboration on crypto-related initiatives.

However, skeptics caution that Bessent’s pro-crypto stance may face resistance from lawmakers concerned about the risks associated with digital assets, such as fraud and money laundering. Balancing these perspectives will be critical to his success.

Historic First: An Openly Gay Cabinet Nominee

The secretary’s nomination is not only significant for the crypto world but also a historic moment for LGBTQ+ representation in politics. As Trump’s first openly gay Cabinet nominee, Bessent’s appointment marks a step forward in inclusivity, sparking widespread discussion on social media.

“Bessent’s nomination is a historic milestone, reflecting a broader shift in American politics,” commented a political analyst on X. “It’s a reminder that representation matters, even in traditionally conservative administrations.”

A Bright Future for Crypto Policy?

Bessent’s nomination comes at a time when the US is grappling with how to regulate the burgeoning crypto industry. His deep financial expertise and pro-innovation mindset position him as a potential catalyst for meaningful change.

The crypto sector, long hampered by regulatory uncertainty, could benefit from a Treasury leader who understands its transformative potential. Industry leaders are optimistic that Bessent will champion policies fostering growth while addressing legitimate concerns about security and compliance.

As the Senate prepares to review the secretary’s nomination, the crypto community and financial markets will be closely watching. Whether his appointment leads to a more supportive environment for digital assets remains to be seen, but his nomination alone has already ignited hope for a brighter future in US crypto policy.

Scott Bessent’s Legacy in the Making

Scott Bessent’s nomination as Treasury Secretary marks a pivotal moment for the US financial sector and the cryptocurrency industry. With his extensive experience, pro-crypto advocacy, and historic representation, Bessent has the potential to redefine the role of the Treasury in the digital age.

As the Senate confirmation process unfolds, the focus will remain on whether the secratary’s vision for innovation and inclusivity can translate into tangible progress for the nation’s economy.

Also read: The $45 Million Mystery: Trump Election Bets Stir the Crypto Market—A Political and Financial Game Changer?

Gary Gensler’s SEC Exit Sparks Crypto Celebration, But Challenges Await Successor

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Gary Gensler’s SEC Exit Sparks Crypto Celebration, But Challenges Await Successor

On November 22, Gary Gensler, Chair of the United States Securities and Exchange Commission (SEC), announced his resignation effective January 20, 2025. Regarded by many as one of the most crypto-critical regulators in U.S. history, Gensler’s departure has been met with a wave of celebration from the cryptocurrency community.

However, while Gensler’s resignation closes one chapter of regulatory friction, it opens another fraught with questions. His replacement, to be nominated by President-elect Donald Trump, will face rigorous Senate confirmation hearings amid divided political and industry expectations.

Also read: Polter Finance Halts Operations After $12M Flash Loan Hack

Gary Gensler’s Legacy: A Thorn in Crypto’s Side?

During his tenure, Gensler adopted a hardline stance toward the crypto industry. The SEC filed lawsuits against numerous high-profile Web3 entities and protocols, including Coinbase, Uniswap, and blockchain developer ConsenSys. These legal actions, often criticized for regulatory overreach, sought to classify many crypto assets as securities, triggering heated debates over the future of decentralized finance (DeFi).

Critics have labeled Gensler’s approach as stifling innovation. However, supporters argue that his aggressive policies aimed to protect retail investors from the risks of unregulated markets.

Crypto Enthusiasts Celebrate on Social Media

The announcement of Gensler’s resignation sparked jubilation across the crypto community, particularly on X (formerly Twitter).

  • Jeremy Hogan, a legal expert and crypto commentator, tweeted, “Ding Dong, Gensler is Gone,” urging followers to sing along to The Wizard of Oz theme song, “The Witch is Dead.”
  • KatieePCrypto, a prominent DeFi advocate, shared a viral AI-generated video of Donald Trump “firing” Gensler, which was widely circulated among pro-crypto users.

The celebration underscores the industry’s dissatisfaction with Gensler’s policies and its anticipation for a potential shift in regulatory tone under new leadership.

Trump’s Choice: Speculation Mounts Over Gensler’s Successor

President-elect Trump has yet to reveal his pick for the next SEC Chair. Speculation is rife, with various candidates emerging as potential nominees.

Who’s in the Running?

  1. Summer Mersinger
    The current Chair of the Commodities and Futures Trading Commission (CFTC) has been floated as a leading contender. Mersinger advocates for crafting clear crypto regulations rather than enforcing them through lawsuits, making her a favored candidate among industry insiders.
  2. Brian Brooks
    Former Binance US CEO and a staunch crypto advocate, Brooks has a 33% probability of nomination, according to predictions platform Kashi. His industry experience aligns with Trump’s deregulatory agenda.
  3. Paul Atkins
    A former SEC commissioner and another top contender, Atkins is viewed as pro-business but may face criticism for his ties to Wall Street.

Notably, Chris Giancarlo, a former CFTC chair and “Crypto Dad,” has ruled himself out, stating that he has no interest in returning to clean up what he called the “mess” left by Gensler.

A Difficult Confirmation Battle Awaits

The Senate must confirm any SEC Chair nominee, and Trump’s pick will likely face intense scrutiny.

A Divided Senate

With a narrowly divided Senate, gaining confirmation for a crypto-friendly candidate could be a challenging process. Even some Republican senators have expressed skepticism about Trump’s previous nominees for other positions, adding another layer of complexity.

Recess Appointments: A Possible Workaround?

Trump has indicated he may use recess appointments to bypass Senate approval for controversial nominees. However, this requires Congress to adjourn, which is unlikely for a high-stakes role like SEC Chair.

What This Means for Crypto Regulation

The departure of Gensler and the potential arrival of a crypto-friendly successor could signal a shift in how the SEC approaches the industry. However, substantial regulatory hurdles remain.

Pending Lawsuits May Persist

Even with a new SEC Chair, lawsuits filed under Gensler’s tenure—against Coinbase, Uniswap, and others—may not be dropped immediately. SEC commissioners typically avoid halting ongoing legal proceedings to maintain the agency’s reputation for impartiality.

Experts like Katrina Paglia, Chief Legal Officer at Pantera Capital, predict these cases may eventually be resolved through settlements, allowing defendants to avoid admitting wrongdoing while paying fines.

A New Regulatory Framework?

If confirmed, a crypto-friendly SEC Chair could prioritize creating clear, consistent guidelines for the industry, replacing the enforcement-heavy approach seen under Gensler.

This shift could provide much-needed clarity for businesses navigating the uncertain regulatory environment, fostering innovation while addressing investor protection concerns.

Broader Implications: A Test for Trump’s Administration

The nomination and confirmation process for Gensler’s replacement will serve as an early litmus test for Trump’s handling of financial and regulatory policy in his second term.

Balancing Act

Trump’s administration must navigate the fine line between appeasing crypto advocates and ensuring regulatory oversight. Choosing a nominee perceived as too lenient on crypto could spark backlash from consumer advocacy groups and lawmakers concerned about financial stability.

Global Ripple Effects

The new SEC Chair’s stance on crypto will also influence global markets. As the United States continues to play a pivotal role in shaping crypto regulation, any policy shifts will likely impact international regulatory frameworks and investor sentiment.

The Road Ahead: Uncertainty and Opportunity

Gary Gensler’s resignation marks the end of an era defined by regulatory friction between the SEC and the crypto industry. While his departure is being celebrated by many, the road ahead remains uncertain.

The crypto industry awaits Trump’s nominee with a mix of hope and apprehension. Whether the next SEC Chair will usher in a more collaborative approach to regulation or continue the hardline policies of their predecessor will depend not only on the nominee but also on the Senate’s willingness to confirm a crypto-friendly candidate.

For now, the industry watches closely, knowing that the decisions made in the coming months could shape the future of cryptocurrency in the United States for years to come.

Also read: The $45 Million Mystery: Trump Election Bets Stir the Crypto Market—A Political and Financial Game Changer?

Ethereum Alert: Crypto Analyst Predicts ETH Downtrend Against Bitcoin

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Ethereum Alert: Crypto Analyst Predicts ETH Downtrend Against Bitcoin

A closely watched cryptocurrency analyst, operating under the pseudonym “Altcoin Sherpa,” has raised alarms about Ethereum’s (ETH) performance against Bitcoin (BTC). Sharing insights with over 230,000 followers on X (formerly Twitter), the analyst predicts ETH’s Bitcoin pair (ETH/BTC) may plummet further as BTC inches closer to the psychological $100,000 mark.

Also read: Polter Finance Halts Operations After $12M Flash Loan Hack

Ethereum’s Struggle Against Bitcoin: New Lows Expected

Altcoin Sherpa suggests Ethereum’s woes against Bitcoin are far from over. According to the analyst, ETH’s bottom against BTC could be as low as 0.025–0.03 BTC, well below its current trading level of 0.03412 BTC (approximately $3,363).

“ETH lol. This is the chart I had months ago. The true ETH/BTC bottom is probably at like 0.025-0.03 BTC,” he posted, alongside a chart illustrating his bearish outlook.

Market Context

ETH has been under pressure as Bitcoin continues its bull run, driven by institutional interest and expectations of a BTC exchange-traded fund (ETF) approval. Historically, altcoins like Ethereum often underperform during Bitcoin-dominated market cycles, a phenomenon commonly referred to as “Bitcoin season.”

Solana Shines: Analyst Predicts New Highs

While Ethereum faces potential struggles, Altcoin Sherpa is optimistic about Solana (SOL). He believes the blockchain platform, often referred to as an ETH competitor, is poised to hit new all-time highs.

“SOL: I know many people that own zero SOL. It’s too high market cap for them. But it’s still the gateway to the biggest casino in crypto and will go higher… Gambling is going to get way more absurd,” he noted.

Current Performance and Market Sentiment

Solana has surged to $256, up 8.5% in the past 24 hours. The network’s growing popularity for decentralized finance (DeFi) applications and non-fungible tokens (NFTs) has made it a “gateway” for new investors in the crypto space.

Sherpa’s bullish sentiment underscores the platform’s resilience, even in a competitive ecosystem dominated by Ethereum and Layer 2 solutions like Polygon.

GRASS: A Warning of Possible Correction

Altcoin Sherpa has also issued a cautionary note on GRASS, a reward token for users sharing unused internet bandwidth with the network. After a bounce from its 0.50 Fibonacci retracement level, GRASS is trading at $2.41, up 14.3% in the last 24 hours.

Despite its recent rally, Sherpa warns of a potential pullback below $2.06:
“GRASS not going to pretend like I traded this but nice bounce off the .50 Fibonacci retracement region. Still think it could be an interesting one to trade, but wouldn’t be surprised to see a deeper pullback later on this one.”

What to Watch

GRASS has gained attention for its unique utility in monetizing idle internet bandwidth. However, such tokens are highly speculative, and Sherpa’s forecast suggests traders should tread carefully, especially in the event of market corrections.

MANTRA (OM): Strong Performance But Due for Cooldown

Sherpa also shared insights on MANTRA (OM), a real-world asset (RWA) token designed to bridge blockchain with tangible economic activities. Despite its recent strength, he anticipates a price cooldown before the token resumes its upward trajectory.

“OM is still insanely strong but I think a cooldown is needed for the next move. Would like to see price pause a bit and chill around the $2.50-$2.90 region. I’ve got a bag for RWA exposure,” the analyst wrote.

Technical Outlook

OM is currently trading at $3.80, down 1.5% in the last 24 hours. Sherpa’s use of Fibonacci levels suggests OM could retrace to support zones between $2.50 and $2.90, a move that would align with typical consolidation patterns before another leg upward.

Broader Market Trends: Altcoins in the Shadow of Bitcoin

The predictions by Altcoin Sherpa highlight a recurring dynamic in crypto markets: the dominance of Bitcoin during major bull runs.

Bitcoin Approaches $100,000

As Bitcoin inches closer to the $100,000 milestone, altcoins like Ethereum and GRASS may face continued headwinds. BTC’s rally often siphons liquidity from other assets, reinforcing its position as the market leader.

Layer 1 and Layer 2 Ecosystems

At the same time, networks like Solana and MANTRA are showcasing the growing appetite for Layer 1 solutions and real-world asset integration. These projects cater to niche demands, providing alternatives for investors seeking opportunities beyond Bitcoin.

Expert Takeaways: Navigating the Crypto Market

The crypto market’s volatility remains both a challenge and an opportunity for traders and investors. Altcoin Sherpa’s predictions serve as a reminder of the complexities inherent in this asset class.

Key Strategies for Traders

  1. Monitor BTC Dominance: Altcoin performance often hinges on Bitcoin’s market dynamics. Keep an eye on the BTC dominance index for insights.
  2. Diversify Smartly: High-growth tokens like Solana and MANTRA offer opportunities but carry risks. Diversifying investments across sectors can mitigate losses.
  3. Use Technical Analysis Tools: Fibonacci retracements, volume indicators, and relative strength index (RSI) are essential tools for identifying entry and exit points.

Long-Term Prospects

Despite short-term fluctuations, blockchain technology and cryptocurrencies remain on a growth trajectory. Projects with strong utility and innovative approaches—like Solana’s DeFi ecosystem or MANTRA’s RWA model—are likely to thrive in the long run.

A Market at Crossroads

Altcoin Sherpa’s analysis paints a nuanced picture of the crypto market. Ethereum may face near-term challenges against Bitcoin, but tokens like Solana and MANTRA represent the evolving landscape of decentralized finance and blockchain applications.

For investors, understanding these market dynamics and aligning strategies with long-term goals will be crucial as the crypto ecosystem continues to mature.

Also read: The $45 Million Mystery: Trump Election Bets Stir the Crypto Market—A Political and Financial Game Changer?

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