A week that could redefine crypto…

So much has happened this week that it feels like months have passed since last week's article.

Let's start with the new most powerful man in the world; President Donald Trump, who signed two executive orders aimed at promoting cryptocurrencies and artificial intelligence in the United States. The first establishes a working group to review and propose regulations that protect and encourage access to blockchain networks, stablecoins, and related banking services. The second executive order seeks to remove barriers to AI innovation, ensuring that these technologies are free of ideological bias and promoting U.S. global leadership in this area, and allocating a $500B budget to research AI development over the next few years.

Additionally, Trump announced plans to impose "very serious tariffs" against Canada and Mexico, arguing that both countries benefit from significant subsidies and rely heavily on the U.S. military. This measure could have implications for the region's trade and economic relations (and let's not mention Trump's dry relationship with Europe).

Trump also made headlines for political pardons for several people, including those who participated in the Capitol Assault in 2021, and has executively signed the pardon for nearly 1,500 convicted people.

Among those pardoned (now you will understand why I am telling you all this) was Ross Ulbricht, who is now 40 years old, was sentenced to prison for more than two decades without parole after being found guilty of drug trafficking, computer hacking and money laundering in 2015, through his website Silk Road. Ulbricht used #bitcoin as a means of payment on Silk Road, which helped many people interact and use the network to be able to buy there. Within the older crypto community, he is considered an antihero who is part of the growth and value that bitcoin has today.

As a final comment on the subject: Will Ross sell or hold the bitcoins that are possibly waiting for him in some inactive wallet for more than 10 years?

Trump assumed power in the United States and on his first day, yes on his first day! he has spoken out about his real interests in the #crypto sector, and has signed an executive order to fulfill his promises.

This Executive Order (EO), which you can see on the White House website, establishes several parameters to be developed soon related to the economy and the crypto sector, among which the following stand out:

- PROMOTE the SOVEREIGNTY of the USD through stablecoins

- CREATION OF A PRESIDENTIAL ADVISORY BODY on cryptocurrencies (Crypto Consulate?)

- A NATIONAL RESERVE OF CRYPTOCURRENCIES, taking into account those that have been seized by the federal government. The most notable thing about this is that it will NOT mean, for now, the FUTURE PURCHASE OF CRYPTO for this national reserve

- BAN ON CBDCs: The BAN on the DEVELOPMENT of any Central Bank Digital Currency (CBDC) in national and foreign territory is established, and any project in the process of development to date is CLOSED

Donald Trump begins by fulfilling several of his promises, which excites the crypto community, but other sectors are outraged by the recent changes (social and cultural situations that we will not touch on here), among which the largest deportation carried out in the US, change in political relations with world leaders, change in the tax regime, stand out, which is why the market is cautious and reserved.

Monetary Policy and the Federal Reserve

The Federal Reserve has signaled a pause in interest rate cuts, in response to a spike in inflation that reached 2.9% in 2024. Under the previous administration, prices rose 21%, prompting the Fed to reassess its monetary stance to balance economic growth and inflation control. In the incongruent speculative theory of the stock market, this should be a signal of caution or danger, as it imposes higher interest rates for a longer time, increasing the recession myth.

In contrast, President Trump has put pressure on the Federal Reserve for an immediate reduction in interest rates, arguing that looser monetary policy could stimulate economic growth. This divergence between the administration and the Fed could lead to tensions in economic policymaking in the near future, for now the markets remained expectant (trading conspiracy theorists would say; ¨the whales are distributing profits to buy the next dip¨).

Global Financial Markets

The main US stock indices experienced slight corrections.

S&P 500 (SPY): Closed at $607.97, down 0.30%.

Dow Jones Industrial Average (DIA): Closed at $444.12, down 0.29%.

NASDAQ (QQQ): Closed at $529.63, down 0.56%.

These changes reflect caution among investors, influenced by mixed economic data and expectations?

about future monetary policies.

Cryptocurrency Market

The crypto market showed notable movements:

Bitcoin (BTC): Reached an intraday high of $105,000, closing at $102,378, representing a weekly appreciation of 3.5%.

Ethereum (ETH): Registered an increase of 2.8%, standing at $3,218.67.

XRP (Ripple): Experienced a 4.2% rise, reaching $3.14.

These trends indicate a renewed interest in digital assets, possibly driven by regulatory developments and institutional adoptions.

Continuing with this week's article on the $TRUMP and $MELANIA #memecoins, they resulted in a classic Pump and Dump, we thought they could have more possibilities to grow over time but unfortunately they followed a classic pattern within memes. This also represented corrections for the entire Solana ecosystem $SOL, $JUP, $ORCA, $RAY between 15% and 40% in their listing prices.

What to expect this week?

Let's look at the most important events to consider in our trades.

Key Economic Events

US Employment Report:

The non-farm payrolls report will be released on Friday, which could provide signals about the health of the labor market and the future direction of the Federal Reserve's monetary policy.

Financial and Corporate Markets

Quarterly results of technology giants:

Companies such as Apple, Microsoft and Alphabet will present their financial reports. The results could significantly influence the technology sector and the NASDAQ.

US Debt Ceiling Review:

Congress will debate a new increase in the debt ceiling, which could create volatility in the markets if an agreement is not reached quickly. (Nowadays, in order to prosper and create wealth in the crypto world, it is increasingly essential to be informed of all the Geo-Economic-Political-Natural-Social events, this is part of the adoption process of blockchain and cryptocurrencies)

Crypto and Blockchain Sector

Ethereum "StarkNet Upgrade" Launch:

Ethereum plans to implement a major StarkNet upgrade to improve scalability and reduce transaction costs. This could attract more projects to the ecosystem. (We will probably be making an article delving into this topic)

U.S. Senate Hearings on Cryptocurrency Regulation:

The Senate is expected to consider proposals to establish a clear regulatory framework for stablecoins and decentralized exchanges.

Solana Expansion in Asia:

Solana Labs will launch an initiative to encourage the adoption of its blockchain in Asian markets, with incentives for developers and users. (We will probably continue to see the price of solana defending the upper part of the range it has created between $230 and $280 in the coming weeks)

Uncertainty about regulations and pressure from central banks could generate very volatile movements in Bitcoin and Ethereum (probably seeking to liquidate longs as shorts before a major move).

The interaction between government policies and technological advances continues to shape the economic and financial landscape. The recent presidential attention towards cryptocurrencies and artificial intelligence could catalyze greater adoption and development in these sectors.?

Note: This analysis is based on information available as of January 25, 2025. (clarification is not superfluous with these days of so much change, stay tuned fellas)