Bitcoin [BTC] has been trading within a tight range of $100K-$105K following the recent FOMC update. As anticipated, the Federal Reserve opted to keep interest rates steady, citing ‘somewhat elevated’ inflation levels.
As of the latest update, the leading cryptocurrency was priced at $104K, just hours before the release of the crucial U.S. PCE (Personal Consumption Expenditure) price index data.
This data is expected to offer insight into the current state of inflation in the U.S. and could significantly impact future interest rate expectations and financial markets.
A lower-than-anticipated inflation report might boost market sentiment, while higher-than-expected figures could potentially lead to a downturn in Bitcoin prices over the weekend. According to the liquidation heatmap, important levels to monitor include $97.5K, $108K, and $110K.
Tether’s Integration with Bitcoin, Kraken’s Staking Resumption
In a separate development, Tether revealed its intention to introduce USDT minting on Bitcoin’s primary layer as well as the layer 2 Lightning Network.
The stablecoin issuer highlighted that this upgrade is facilitated by Taproot Assets, a novel Bitcoin network protocol enabling the existence of tokenized assets like USDT.
In response to this announcement, Paolo Ardoino, Tether’s CEO, expressed that:
“By enabling USDt on the Lightning Network, we are not only strengthening Bitcoin’s fundamental principles of decentralization and security but also creating practical solutions for remittances, payments, and other financial uses that necessitate both speed and dependability.”
Another positive development, particularly for users in the United States, is Kraken’s relaunch of crypto staking after a hiatus of two years. The exchange had previously suspended this service due to regulatory pressure from the SEC.
Nevertheless, on January 30th, Kraken introduced a new on-chain staking service. Customers have the opportunity to stake a portion of their assets for a specific duration based on blockchain specifics and earn rewards after deducting fees.
This service will be catered to 39 U.S. states and will cover cryptocurrencies like Ethereum [ETH], Solana [SOL], Polkadot [DOT], Cardano [ADA], and others.
Mark Greenberg, Kraken’s Head of Consumer, referred to this move as a “favorable” development for the U.S. crypto industry.
“Introducing this new staking offering in the U.S. represents an overwhelmingly beneficial advancement, not only for Kraken but also for the broader U.S. cryptocurrency sector.”
Bitwise Receives Approval from the SEC
Lastly, Bitwise obtained approval from the SEC for its joint BTC and ETH ETF application. The regulatory body sanctioned its 194-b filing (rule amendment), awaiting clearance on its S-1 form (registrant statement) before being available for public trading.
In response to this development, James Seyffart, an ETF analyst at Bloomberg, pointed out that recent activities surrounding S-1 filings suggested that products like those pursued by Hashdex and Franklin Templeton could initiate trading shortly.
Seyffart mentioned:
“There was activity related to Hashdex yesterday and today. Updates were filed in conjunction with their S-1 and 19b-4. This indicates to me that these products are likely to debut in the very near future.”