## Positive Developments in the UK and US

Recent **fundamental developments** in both the **UK** and the **US** have notably influenced the prices of the top three cryptocurrencies: **Bitcoin**, **Ethereum**, and **XRP**. The announcement of a new **Economic Secretary** in the UK has instilled optimism in the market, contributing to the upward momentum in cryptocurrency valuations.

### Market Reactions

As the **crypto market** responds positively, many investors are keenly watching how these changes might further impact **price movements** in the coming weeks. The sentiment among traders is notably **bullish**, with expectations of potential gains as regulations and frameworks around cryptocurrencies evolve.

### What’s Next?

With the **UK's push** to enhance its stance on crypto, investors are advised to stay informed and consider the implications of these political and economic changes on their investment strategies. The **crypto landscape** is rapidly changing, and staying ahead could be key to capitalizing on emerging opportunities.

Positive fundamental development in the UK and the US seems to have boosted the prices of the three top cryptocurrencies: Bitcoin, Ether, and XRP.

UK's New Economic Secretary Sparks Bitcoin, Ethereum, and XRP Price Surge!

Today's CPI report has significant implications for **crypto investors**. 

### Market Movements
**Bitcoin** (BTC) has surged **2.6%** in the last 24 hours, while **Ethereum** (ETH) and **Dogecoin** (DOGE) have also seen impressive gains of **5.72%** and **5.85%**, respectively. This momentum brings Bitcoin closer to the pivotal **$100,000** mark, reflecting a broader bullish trend in the crypto market.

![Bitcoin Logo](https://g.foolcdn.com/art/companylogos/mark/BTC.png)

**Current Price:** $99,771.56  
**Today's Change:** 3.11%  

### Macro Influences
This surge is largely attributed to today's **Consumer Price Index (CPI)** report, which came in lower than expected, leading to increased interest in higher-growth and speculative assets. Despite overall inflation remaining at **2.9%**, the lower core CPI reading has raised expectations for potential interest rate cuts, enhancing the risk-reward outlook for cryptocurrencies.

### The Rise of Risk Assets
On a relatively calm day for specific tokens, macroeconomic conditions appear to be driving market sentiment. The **U.S. dollar** is under pressure, benefiting Bitcoin and other risk assets. Investors are closely monitoring the **10-year U.S. Treasury yield**, which is often utilized as a discount rate for equities and risk assets. Lower yields could lead to a resurgence in risk appetite among investors.

### Looking Ahead
If macro conditions continue to ease, we may witness a revival of investor enthusiasm for cryptocurrencies. Bitcoin, Ethereum, and Dogecoin are regarded as quality digital assets, and this CPI report might just be the catalyst they needed for another bullish run.

Today's CPI report turns out to mean a great deal to crypto investors.

Why Bitcoin, Ethereum, and Dogecoin Are Experiencing a Massive Surge Today: Key Insights

### Ex-Delivery Driver Ordered to Repay **$3.78 Million** for Bitcoin Money Laundering

**Jian Wen**, a former U.K. takeaway worker, has been ordered to repay over **$3.78 million (£3.1 million)** due to his conviction for money laundering involving **Bitcoin**. Failure to comply could result in an additional **seven years in prison**.

Wen, aged 42, was previously sentenced to **six years and eight months** in prison following his connection to a cryptocurrency wallet containing **150 Bitcoin**, valued at nearly **$15 million** at current prices. Prosecutors highlighted that the significant amount of seized Bitcoin, combined with the absence of legitimate evidence regarding its acquisition, indicated that it was **criminal property**.

The **National Crime Agency (NCA)** and police in the UK have recently received enhanced powers to **seize, freeze, and destroy** cryptocurrencies used in criminal activities. This move aims to combat the rising concern of **crypto crime**, with reports indicating that up to **$5.1 billion** in illicit crypto transactions are linked to the UK annually.

In a related case, the **Metropolitan Police** seized Bitcoin wallets estimated to be worth over **£300 million ($364.75 million)**. Investigators found no legitimate explanation for the funds involved in Wen's case, which also included the purchase of two properties in **Dubai** worth more than **£500,000**. Wen claimed these purchases were made on behalf of a Chinese national and denied any connection to criminal proceeds.

The court determined that Wen profited **£3,500,113** from criminal activities, with current assets assessed at **£3,126,572**. He must pay this amount within **three months** or face an extended prison sentence. If additional assets are uncovered, he will be held accountable for the outstanding balance beyond the current **Confiscation Order**.

The delivery driver was previously sentenced to six years and eight months in prison after being linked to a cryptocurrency wallet containing 150 BTC.

Ex-Delivery Driver Faces $3.8 Million Bitcoin Repayment After Money Laundering Conviction

### A New Chapter in U.S. Financial Regulation
On **January 20, 2025**, the U.S. will not only witness the inauguration of **President Trump** as the 47th President but will also celebrate the resignation of **Gary Gensler**, former Chair of the Securities and Exchange Commission (SEC). This change marks a pivotal moment for the U.S. financial sector, particularly in the realm of **cryptocurrency and blockchain technology**.

As a member of the **House Financial Services Committee**, I have seen firsthand Gensler's heavy-handed approach that often stifled innovation and hindered the growth of the American economy. His **punitive stance** was especially damaging to the burgeoning **crypto sector**, which thrives on innovation and forward-thinking.

While Gensler claimed his actions protected investors, he instead created a climate of **regulatory uncertainty**. This ambiguity has driven many promising projects offshore, significantly impacting American exchanges like **Bittrex**, **Kraken**, and **Coinbase**. Bittrex, for instance, explicitly cited Gensler's influence as a reason for its exit from the U.S. market.

### The Need for a New Regulatory Framework
The conversation around regulation is vital — **cryptocurrency undoubtedly requires oversight**. However, this regulation must be distinct from traditional frameworks, balancing **consumer protection** with the imperative to foster **innovation**. With **Bitcoin recently surpassing the $100,000 mark**, the resilience and potential of digital assets have been firmly established.

Last year, I proudly supported the passage of the **Financial Innovation and Technology for the 21st Century Act** (FIT 21) in the House, a groundbreaking bill aimed at creating a clear regulatory framework for the SEC and the Commodity Futures Trading Commission (CFTC). This legislation represents a shift towards fostering **transparency and innovation** while safeguarding consumers — a stark contrast to the **SEC's enforcement-heavy** approach.

### Trump's Return and the Future of Crypto
**President Trump** has recognized the transformative potential of cryptocurrency, which has resonated with younger, diverse voters. During his previous term, the SEC under Trump worked collaboratively with the crypto industry, providing essential guidance through initiatives like the **DAO Report** and the **Framework for Investment Contract Analysis of Digital Assets**.

With Trump's return and a Republican majority, we see a **bullish trend** emerging in the crypto market, evidenced by a **33% increase in Bitcoin's price** since Election Day. Anticipating the appointment of **Paul Atkins** as the next SEC Chair, we expect a more transparent governance approach that encourages innovation while protecting investors.

This new era promises to position the U.S. as a leader in the **global digital economy**, moving past the missed opportunities of the Biden administration and creating high-paying jobs within the **cryptocurrency and blockchain sectors**.

Passing the Financial Innovation and Technology for the 21st Century Act into law would  establish a responsible new regulatory framework that clearly defines the role of the SEC and the CFTC, says Rep. Mike Lawler, a member of the House Financial Services Committee.

The End of an Era: Gary Gensler's Resignation and What It Means for Cryptocurrency

Donald Trump is known for fueling **volatility** in financial markets. When he won his first election, markets rallied off expectations of huge **tax cuts** and **financial deregulation**. Now, his second election victory is raising certain asset prices, with **cryptocurrencies** as one of the main beneficiaries.

Last year, the combined value of all digital currencies rocketed from **$1.6 trillion** to **$3.29 trillion**, and **Bitcoin**, the industry's poster child, hit a new high just above **$100,000**. Crypto prices began rising again toward the end of 2023, but the biggest gains were seen after Trump won the election following a campaign in which he promised to be the **"crypto president."**

### Trump’s 'Crypto President' Promise
Trump announced his 'crypto president' plans in 2024 at an annual Bitcoin conference in Nashville, Tennessee. He stated he would make the U.S. “the crypto capital of the planet and the **Bitcoin superpower** of the world.” He expressed, “If Bitcoin is going to the moon... I want America to be the nation that leads the way.”

He also discussed creating a **government strategic stockpile** of Bitcoin, similar to the U.S.'s existing **gold** and **oil stockpiles**, and has since nominated cryptocurrency advocates to chair the **Security and Exchange Commission (SEC)** and the **Treasury**.

### Is Trump Responsible for Bitcoin's Rise Over $100,000?
In early November 2024, just before Trump’s election victory, Bitcoin traded at about **$68,300**. Not long after, the price soared beyond **$100,000**, with analysts citing Trump's victory as a catalyst. Other cryptocurrencies also rose sharply, as did investments in crypto-related companies.

Trump’s endorsements and choice of crypto-friendly figures to head key departments in his administration sent a message that the U.S. government is behind Bitcoin, keen to help it flourish, and not planning to hinge its development with regulation. By doing so, he eliminated some of the core concerns that have long spooked investors and kept Bitcoin away from the mainstream.

### Is the Rise in Crypto Sustainable?
Yet it remains to be seen whether Trump will be able to keep the more ambitious of his crypto-related promises and even how genuine they were, given that the crypto industry was the largest corporate donor in the 2024 presidential race. Just three years earlier, he had denounced Bitcoin as a “**scam against the dollar**,” and any diminishment of the dollar as the world's most important trading currency involves a weakening of U.S. economic power. So longer-term U.S. strategic interests may win out.

There are concerns about Trump’s pledge to use taxpayer funds to stockpile Bitcoin. Bitcoin has no intrinsic value, its price is extremely volatile, and, unlike the dollar, its production and supply can't be controlled by the U.S. government. While about **95%** of the potential supply of Bitcoin has already been issued, it remains far from mainstream, so convincing Americans to invest in a stockpile could be a hard sell.

Still, Trump himself is now invested in the crypto industry with the creation of the crypto platform **World Liberty Financial**, so he may prioritize his financial interests with crypto-friendly policies.

### What Could Cause Crypto To Fall?
First, the 'Trump bump' was at least partly a **momentum trade**, so prices could fall as soon as that momentum fades, and in fact this appears to have already begun, though the pullback has been modest so far.

There are also legitimate concerns about the long-term sustainability of digital currencies. One involves their history of facilitating crime. Another is the high cost of producing them and the enormous amounts of energy they consume. Many argue that other technologies, including **artificial intelligence**, are more deserving of our limited energy supplies.

While a high-tech, decentralized financial system carries a lot of appeal and potential value, crypto has yet to live up to its promise. Cryptocurrencies have been around for years, yet their practical use is still highly limited, fueling the argument that they are purely speculative instruments with no intrinsic value.

### The Bottom Line
Donald Trump’s electoral ambition and penchant for prioritizing his own business interests have been great for the crypto industry and its growing band of investors. However, there are a number of reasons to be skeptical that the **"Trump bump"** is sustainable even in the near term. Campaign promises are cheap. Making the U.S. the **"crypto capital of the planet"** won't be.

Trump says he wants to nurture cryptocurrencies and propel them into the mainstream but there are clear conflicts of interest and these digital currencies remain speculative, risky investments.

Can Trump’s Promises Propel Bitcoin Beyond $100,000? The Future of the 'Trump Bump' Explored

### **Panic Selling and Bitcoin's Price Movement**

**Standard Chartered** has issued a warning regarding the potential for a **self-fulfilling sell-off** if Bitcoin approaches the **$90,000** mark again. This situation could exacerbate market volatility, leading to even steeper declines for Bitcoin.

### **Understanding the Dynamics**

The financial institution suggests that if Bitcoin retraces back to **$90,000**, a wave of **panic selling** might ensue among investors, spiraling the cryptocurrency into a more significant downtrend. The concern is that the **fear of loss** could trigger more selling, thereby amplifying the downward pressure on prices.

### **Market Sentiment and Investor Behavior**

Investor sentiment plays a crucial role in this scenario. As prices fluctuate, the psychology of the investors can lead to drastic reactions. **Standard Chartered's** analysis highlights the importance of understanding market psychology to mitigate risks associated with sudden price drops.

### **Conclusion**

With Bitcoin's price hovering around significant levels, it is essential for investors to stay informed and be cautious. The potential for a **self-fulfilling prophecy** of selling could alter the market landscape dramatically if not managed carefully.

Panic selling could invite even steeper declines if bitcoin slides back to $90,000, says Standard Chartered.

Is Bitcoin's Surge to $90,000 a Recipe for Panic Selling? Insights from Standard Chartered

### Exploring the Future of Cryptocurrency

What do **Tether’s** recent move to **El Salvador**, **bitcoin's** potential role in national reserves, and **Coinbase’s** significant victory against the **SEC** tell us about the future of crypto, especially with the possibility of a second **Trump presidency**?

This week, Bloomberg’s **James Seyffart**, **Ram Ahluwalia** from Lumida, and guest **Tom Dunleavy** delve into these pressing questions. They examine whether the **“Fed pivot” is officially dead**, the implications of **AI** on the job market, and the consequences of Tether's actions for U.S. stablecoin policy.

The discussion also touches on whether **bitcoin** could become a **risk-off asset**, how sovereign nations might be accumulating **BTC**, and what Coinbase's legal triumph signifies for the future of cryptocurrency.

### Key Discussion Points:
- The status of the **“Fed pivot”** and potential **rate cuts**.
- The impact of **AI** on the **job market**.
- The current market volatility and whether we have hit the bottom.
- Predictions on what a **Trump presidency** could mean for the crypto industry in his first 100 days.
- Speculations on whether the U.S. sold the **Silk Road** bitcoin.
- Insights on why **bitcoin** is unlikely to be a risk-off asset in the near term.
- Discussion on the potential accumulation of **bitcoin** by sovereign nations.
- Analysis of Tether's move to **El Salvador** as a setback for the U.S.
- The influence of the **L.A. fires** on the political landscape in the U.S.
- Overview of **Coinbase’s** significant legal victory against the SEC.

### Show Highlights:
- **James Seyffart**, **Ram Ahluwalia**, and **Tom Dunleavy** share their insights on the current state of crypto.

![Podcast Episode](https://www.youtube-nocookie.com/embed/tAuE51TXvqU?iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=1&autoplay=0)

### Sponsors:
- [Stellar Build Better](https://betteron.stellar.org/) 

### Hosts:
- [James Seyffart](https://twitter.com/JSeyff), Research Analyst at Bloomberg Intelligence
- [Ram Ahluwalia](https://x.com/ramahluwalia), CFA, CEO and Founder of Lumida

### Guest:
- [Tom Dunleavy](https://x.com/dunleavy89?lang=en), Partner at Master Ventures

What do Tether’s move to El Salvador, bitcoin’s role in sovereign reserves, and Coinbase’s major SEC victory reveal about the future of crypto—especially under a second Trump presidency?

The Future of Crypto: Tether's Move, Bitcoin's Role, and the SEC Showdown

### Major Developments in the Bitfinex Hack Case

U.S. prosecutors have recently filed a motion requesting a federal judge to approve the return of **94,643 bitcoins**, nearly **80%** of the **119,754 bitcoins** stolen during the infamous **2016 Bitfinex hack**. This significant development could lead to a major restitution for the crypto exchange.

In their filing, prosecutors indicated that these bitcoins, recovered from the original wallet of hacker **Ilya Lichtenstein**, can be returned to Bitfinex as restitution once the court grants the necessary permission. Additionally, any **Bitcoin Cash**, **Bitcoin Satoshi Vision**, and **Bitcoin Gold** generated through subsequent hard forks will also be included in this restitution.

### Sentencing of the Hackers

In a related case, Lichtenstein was sentenced to **5 years in prison** after pleading guilty to conspiracy to commit money laundering in **2023**. His wife, **Heather Morgan**, also known by her rap name **Razzlekhan**, received an **18-month sentence** for her involvement in laundering a part of the stolen funds. As part of their plea agreements, both have agreed to forfeit the stolen cryptocurrency.

### Complications in Returning Remaining Bitcoins

However, the return of the remaining **25,000 bitcoins** will be more complex. Prosecutors pointed out that Lichtenstein and Morgan used a range of **sophisticated methods** to launder these coins, including:
- Extensive **peel chain transactions**
- Transactions through **non-compliant virtual currency exchanges**
- **Darknet markets** and **mixers**
- Commingling funds in their personal and business accounts

Due to these complexities, the remaining bitcoins cannot be classified as the **specific property** lost in the hack. Consequently, they will need to be returned through an **ancillary forfeiture proceeding**.

The remaining 25,000 bitcoins stolen in the 2016 hack must be returned through a more complex claims process.

UK's New Economic Secretary Sparks Bitcoin, Ethereum, and XRP Price Surge!

Summary:

Positive Developments in the UK and US

Market Reactions

What’s Next?

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U.S. Court Moves to Return 94,643 Stolen Bitcoins to Bitfinex: What You Need to Know