AICoin Focus: Daily Hot Picks (January 11)

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1. In December, the U.S. non-farm payrolls increased by 256,000, exceeding the expected 160,000, with an unemployment rate of 4.1%. The Federal Reserve may delay interest rate cuts.

2. Federal Reserve's Goolsbee stated that if current economic expectations are realized, interest rates will significantly decline in 12 to 18 months.

Goolsbee mentioned that if economic conditions stabilize, inflation does not rise, and full employment is achieved, interest rates should decline. If current expectations are met, interest rates will significantly drop in 12 to 18 months. -Original

3. JPMorgan expects the Federal Reserve to make its next interest rate cut in June, delaying the previous expectation of March.

JPMorgan stated that given the latest strong non-farm employment data, it expects the Federal Reserve to make its next interest rate cut in June, whereas the previous forecast was for March. -Original

4. Non-farm data supports the Federal Reserve's slower pace of interest rate cuts, indicating a strong job market.

The Financial Times commented on the non-farm data, noting that the U.S. created 256,000 jobs in December, exceeding expectations and supporting the rationale for the Federal Reserve to slow down its interest rate cuts. The U.S. Bureau of Labor Statistics reported that employment numbers surpassed the 160,000 expected by Reuters analysts and were also higher than the revised 212,000 for November. The unemployment rate was 4.1%, down from 4.2% in November. As the December employment data was released, a sell-off occurred in the global bond market, partly due to increasing expectations that the Federal Reserve would only make modest interest rate cuts in 2025. -Original

5. FTC Vice Chairman calls for a more open approach to cryptocurrency, criticizing the current "bottleneck strategy."

FDIC Vice Chairman Travis Hill stated in a speech on Friday that he expects the agency insuring deposits for U.S. banks to take a more "open approach" to technology and called for more guidance on digital assets. Hill's comments came after some in the crypto industry expressed concerns that the FDIC had requested financial institutions to pause activities related to cryptocurrency. -Original

6. Bhutan adopts a cryptocurrency reserve strategy, potentially paving the way for economic growth in other countries.

Bhutan, a small country in South Asia, is making waves in the cryptocurrency world. This kingdom, located between India, China, and Nepal, has a population of about 770,000, and one of its cities has adopted a cryptocurrency reserve strategy, making headlines. This includes Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB). El Salvador has previously included Bitcoin as part of its national reserves, and several other countries, including the U.S., are considering similar measures to bolster their already strong economies. However, Bhutan could set an example for smaller nations, as incorporating cryptocurrency into its national reserve strategy could have a significant economic impact. Phillip Shoemaker, Executive Director of the nonprofit Identity.com, stated, "They are fully armed, showcasing the possibilities in the digital asset space to the world by bringing in foreign companies to leverage the growing global interest in cryptocurrency." "I believe this move could inspire other governments around the world to take similar actions, especially those small countries affected by currency fluctuations and geopolitical uncertainties," he said. According to a World Bank report from May this year, while Bhutan's economy is indeed quite strong, there are still downside risks as the country's fiscal deficit is expected to widen. The report suggested that to ensure economic growth, Bhutan needs to attract more foreign investment. Bhutan has heeded this advice and established Gelephu Mindfulness City, where cryptocurrency is being adopted as part of its "mindful, sustainable, and innovative" goals. "The economic zone being established helps attract foreign investment, so its accumulation of digital assets could be very noteworthy on an international level," Shoemaker said. Bhutan is already prepared for this initiative. The country is estimated to have 24,000 megawatts of technically feasible hydropower potential, of which only about 7% has been developed so far. "After all, they get so much power from hydropower, so it makes sense for them to mine," Shoemaker said. Bitcoin mining requires massive energy, raising concerns about the negative environmental impact of cryptocurrency mining. However, using hydropower addresses this issue as it is more cost-effective and reduces the carbon footprint of miners. According to a Forbes article, Bhutan began utilizing its abundant hydropower to mine Bitcoin in April 2019. According to Arkham data, Bhutan now holds over 11,000 Bitcoins, valued at approximately $1.1 billion. According to BitcoinTreasuries data, this makes Bhutan one of the top five countries holding Bitcoin reserves. "Bitcoin mining is a great tool for utilizing various forms of renewable and stranded energy," said Jagdeep Sidhu, core developer of Syscoin and chairman of the Syscoin Foundation. "I think other governments are increasingly looking to Bhutan as a model for how to build their own Bitcoin reserves, especially those with abundant energy that might otherwise go to waste." -Original

7. The dollar rises ahead of U.S. non-farm data, with the market focused on the timing of the Federal Reserve's interest rate cuts.

Ahead of the release of U.S. non-farm employment data, the dollar strengthened. The non-farm employment data may provide hints about the timing of the Federal Reserve's next interest rate cut. Francisco Pesole, an economist at ING, stated in a report that the risk balance leans towards a stronger dollar, as potentially strong employment data could "prompt the market to price in a March rate cut and possibly push the first fully priced cut to June or later." If the data is weaker than expected, investors may cut back on their long positions betting on a rising dollar. However, ahead of the upcoming key data and Trump's presidential inauguration on January 20, these longs may look to rebuild at better levels. -Original

8. CFTC cryptocurrency enforcement chief departs, potentially affecting future cryptocurrency regulatory direction.

Enforcement Director Ian McGinley will leave the Commodity Futures Trading Commission in a week, ending his relatively short tenure during which several high-profile cryptocurrency cases occurred. He joined the agency in February 2023, and a month later, the CFTC sued Binance and then-CEO Changpeng Zhao for violating U.S. commodity laws. During his tenure, he also oversaw the completion of enforcement actions against the collapsed global platform FTX, which he called the largest dollar recovery for victims in CFTC history. Since then, the agency has taken action against projects like KuCoin and Falcon Labs. In a speech in 2023, McGinley discussed the agency's special focus on digital assets, stating, "The CFTC has risen to the challenge in extraordinary ways." In a statement announcing his departure on January 17, "making the CFTC the primary enforcement agency for digital assets" was listed as one of his top priorities during his tenure. The CFTC's sister agency, the U.S. Securities and Exchange Commission, typically receives more attention (and industry criticism) for its cryptocurrency enforcement work, although both have handled dozens of significant cases. McGinley's departure opens the door for Republicans, as the agency's enforcement work could be realigned when a Trump appointee takes over as chair. Reports indicate that Trump's transition team has been eyeing a long list of potential CFTC heads, but has not acted as swiftly as in the SEC's upper ranks. However, if cryptocurrency legislation progresses in 2025, the CFTC could supplant the SEC as the dominant regulator of the U.S. digital asset market. Current Republican commissioners Caroline Pham and Summer Mersinger are touted as potential candidates for the upcoming chair position, along with former commissioner and current a16z crypto policy head Brian Quintenz. -Original

9. The U.S. Consumer Financial Protection Bureau proposes to include digital wallets under the same protection standards as bank accounts.

Some participants in the cryptocurrency industry criticized the new rules proposed by the CFPB on Friday, stating it is unclear whether these rules will affect non-custodial service providers. Billionaire Elon Musk, co-head of the government efficiency department, previously stated he would "abolish" the Consumer Financial Protection Bureau founded by Elizabeth Warren. -Original

10. Rapper prepares to go to prison over Bitfinex hack incident, releases new music video.

The most notorious rapper in the cryptocurrency industry, Heather Morgan (better known as Razzlekhan), has released a new music video while U.S. authorities are preparing to imprison her for money laundering charges. Her husband was convicted of stealing cryptocurrency from Bitfinex. In the song "Razzlekhan vs. The United States," Morgan's quirky and proactive musical persona spins and grimaces in front of the camera. Although the title of the song contains legal terminology, the lyrics do not openly attack the investigation and court proceedings that led to her 18-month prison sentence. "This is not a free country; it runs on money; capitalists are closely connected; Morgan raps, 'Old white men are angry.'" This aggressive image sharply contrasts with the conservatively dressed defendant, who apologized in a Washington courtroom for concealing and cashing out nearly 120,000 Bitcoins of stolen wealth, crying in the process. Her husband, Ilya "Dutch" Lichtenstein, was sentenced to five years in prison for orchestrating the hack and theft. The couple's cryptocurrency crimes are the subject of the recent Netflix documentary "The Great Heist." Morgan believes her Razzlekhan performance is a tongue-in-cheek commentary, stating in the latest "misfits anthem" released on Friday, "the lines between sexy and awkward memes are blurred." "It symbolizes many of my thoughts and real experiences in the federal case," she said in a statement about the work. "Many creatives and misfits have told me that Razzlekhan's content is really inspiring and makes them feel less alone." Despite her request for a reduced sentence, the federal judge who sentenced her stated that she does not have to report to prison until the end of January. Her computer usage will also be restricted and monitored. Bitfinex hacker money launderer Heather 'Razzlekhan' Morgan was sentenced to 18 months in prison. Morgan lamented in court that due to public attention on her rapper persona, she has been treated as a side show in this high-profile criminal case, and her reputation has been "thoroughly" destroyed. She told the judge at her sentencing hearing that she would be haunted for "the rest of her life," but everything she did was to help steal funds now worth $11 billion. Hours later, she released a Razzlekhan video, celebrating the end of her silence. In her latest appearance less than two months later, Razzlekhan's target was not cryptocurrency executives but someone closely related to the world of digital assets: the CEO of Tesla and social media site X, who is now a political ally of elected President Donald Trump. "Old money, gold everywhere; save me, Elon Musk!" -Original

11. Bybit announces temporary suspension of services for Indian users due to regulatory restrictions.

Bybit will temporarily restrict all trading and product usage for Indian users on its platform starting from 8 AM UTC on January 12, 2025, due to the latest policies from Indian regulatory authorities, with the only exception being the withdrawal function, which will remain operational. Specific impacts include: • Trading and deposits: All cryptocurrency and fiat trading products will stop accepting new orders, and existing derivative positions will be adjusted to "close only" mode, with no new or modified positions allowed. The deposit functions for cryptocurrencies and fiat will also be temporarily halted. • Copy trading and trading bots: All master-slave relationships for copy trading and trading bots will be terminated before 5 AM UTC on January 13. • P2P ads: All ads priced in Indian Rupees (INR) will be removed at 8 AM UTC on January 12. Bybit stated that it will continue to comply with relevant regulations, provide compliant services to users, and facilitate convenient withdrawal channels for affected users. -Original

12. Kenya prepares legislation to legalize cryptocurrency, indicating a shift in government attitude towards crypto.

Kenya's Cabinet Secretary for the Treasury, John Mbadi, stated on Friday that Kenya is preparing legislation to legalize cryptocurrency, marking a significant shift in the government's stance. Kenya currently prohibits the use of cryptocurrency, but the public still widely uses it underground to circumvent restrictions. In a statement outlining the new policy, Mbadi said, "The emergence and development of virtual assets and virtual asset service providers have brought innovation to local and international financial systems, presenting vibrant opportunities and challenges." -Original

The above is a selection of hot topics from the past 24 hours. For faster news, please download AICoin (aicoin.com).

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