Crypto News Today (2/1)

1. Inflation Shakes #Bitcoin… Will the $100,000 Support Level Hold?

- Key Points
Bitcoin (#BTC) is currently trading around $102,000, but concerns over U.S. inflation and employment data could push it down to $100,000.

- Inflation and Market Impact
Yuya Hasegawa, a market analyst at Japan's Bitbank, stated that after Trump's inauguration, market focus has shifted to U.S. inflation indicators and the upcoming employment report.
Although inflation has slightly eased, it remains at a high level, which could negatively affect Bitcoin.

- #Ethereum and #ETF Approval Influence
The #SEC's approval of the Bitwise Bitcoin-Ethereum ETF has led to Ethereum outperforming Bitcoin.
Ethereum ETF net inflows increased by $67.8 million, a positive sign.

- Interest Rate Expectations and Economic Data
The December Personal Consumption Expenditures (#PCE) price index rose by 0.3% month-over-month, reducing expectations for interest rate cuts.
James Wu from Digital Finance Group suggested that if inflation continues to ease, expectations for rate cuts could return, positively impacting the market.

- Federal Reserve and Regulatory Outlook
Fed Chair Jerome Powell stated that "U.S. banks are capable of managing crypto customers," raising hopes for regulatory relaxation.
The repeal of the SAB 121 accounting rule is also seen as a positive signal for the U.S. crypto market.

- Gold Prices and Bitcoin's Impact
10X Research reported that Trump's tariff policies are driving gold prices up, which could also positively influence Bitcoin.
Since Trump’s election, $35 billion worth of gold has flowed into the New York COMEX vaults, hitting the highest inventory level since 2022, reinforcing Bitcoin’s status as a reserve asset.

2. Circle’s Expanding USDC Dominance: A Bearish Signal for Crypto?
 
- Key Points
Circle's USDC stablecoin issuance has surged to $6 billion in 2025, increasing its market dominance.
Some analysts warn that the rising USDC market share could be a bearish signal for the crypto market.

- USDC Market Share and Investor Sentiment
Alphractal, a crypto analysis platform, noted that USDC’s dominance is approaching resistance levels last seen in 2021, suggesting a rise in risk-averse sentiment among investors.
"If USDC share keeps rising, it could indicate growing market caution, which might act as a bearish signal."
 
- USDC Issuance on Solana Network
Circle minted $250 million in new USDC on Solana, pushing the 2025 total issuance to $6 billion.
This surge is linked to the launch of Trump-themed meme coins (#TRUMP & #MELANIA).

- Stablecoin Market Growth
Solana's stablecoin supply grew by 112% year-to-date, reaching $11.1 billion.
Overall stablecoin market cap increased from $121.1 billion (Aug 2023) → $211 billion (Jan 2025), a 73% jump.

- Comparison Between USDT and USDC
Tether (USDT) market cap: $140 billion (Dec 2023) 
→ $139.4 billion (Jan 2025), maintaining a 63.84% dominance.
 
- Expert Opinions
The rise of USDC could enhance short-term market stability but may also indicate a shift toward risk aversion, signaling potential market weakness.

3. Trump’s Tariff Announcement Sends U.S. Markets Lower
 
- Key Points
Trump administration implemented new tariffs on February 1, causing U.S. stock and crypto markets to decline.
White House spokesperson Caroline Leavitt officially confirmed the tariff enforcement.
 
- U.S. Stock Market and Crypto Impact
U.S. stock indices fell: Dow -0.75%, S&P 500 -0.51%, Nasdaq -0.28%.
Crypto market also weakened, with XRP plunging over 4%.
 
- Key Tariff Policies
Canada & Mexico: 25% tariff imposed.
China: Additional 10% tariffs applied.
 
- Tough Stance on BRICS Nations
Trump warned BRICS nations would face 100% tariffs if they shift away from the U.S. dollar.
Affected countries strongly opposed the retaliatory tariffs.
 
- Market Uncertainty Rises
This is Trump’s first large-scale retaliatory tariff policy, escalating global economic tensions.

4. Trump’s World Liberty Financial Adds $10M Worth of Ethereum
 
- Key Points
Trump family’s DeFi project 'World Liberty Financial' purchased $10 million in ETH, increasing its total holdings to 66,239 ETH (~$225 million).
 
- ETH Acquisition Strategy
A second consecutive $10 million ETH purchase following a similar buy on January 28.
Also accumulating WBTC, TRX, LINK, AAVE, primarily through CoW Protocol.
 
- Trump’s Role in Crypto Adoption
Launched in September 2024, Trump holds the title of "Chief Crypto Advocate".
Eric Trump & Donald Trump Jr. serve as Web3 Ambassadors.
 
- #MOVEToken Controversy
Purchased $2 million in MOVE tokens ahead of public availability, raising insider trading concerns.
MOVE issuer Movement Labs reportedly engaged with Elon Musk’s government.

- Ethereum Price Outlook
ETH failed to break the $3,500 resistance, market watching for sustained strength.
Key catalysts for further gains:
 ✔️ Resolution of Ethereum Foundation’s governance issues
 ✔️ Success of Pectra upgrade (Q1 2025)
 ✔️ Increase in spot ETH ETF inflows

5. Ethereum Rally Fueled by SEC ETF Approval & Institutional Inflows
 
- Key Points
Ethereum (ETH) surged 5% to reclaim $3,400, driven by SEC’s Bitwise BTC-ETH ETF approval and increased ETF inflows.
 
- ETF Inflow Surge
January 30: Spot ETH ETF saw a $67.8 million net inflow (highest in 10 days).
BlackRock’s ETHA: $79.9 million inflow, Fidelity’s FETH: $15.4 million inflow.
Grayscale’s ETHE saw a $40.3 million outflow.
 
- Technical Analysis & Bullish Outlook
ETH broke out of a falling wedge pattern, suggesting a trend shift.
Sustained close above $3,430 is key for full bullish confirmation.
 
- Institutional Accumulation & Price Projections
Analyst Wolf suggests whales are accumulating ETH near $3,000.
   ETH projections:
    ✔️ $4,000 by late February
    ✔️ $5,000 in March
    ✔️ $6,500 in April before a correction, then $9,500–$10,000 later.
#Bitcoin #BTC #Ethereum #ETF #SEC #PCE #TRUMP #MELANIA #MOVEToken