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  • ExtraOrdinal Daily #110 | Fed Signals Openness to Crypto—Is a Rate Cut Next?

ExtraOrdinal Daily #110 | Fed Signals Openness to Crypto—Is a Rate Cut Next?

30th Jan 2025 ||| Issue #110
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Table of Contents

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Todays Top Stories

Fed Signals Openness to Crypto—Is a Rate Cut Next?

Bitcoin surged past $105,000 after the Federal Reserve held rates steady, but the real headline came from Fed Chair Jerome Powell’s stance on crypto banking.

“Banks are perfectly able to serve crypto customers as long as they understand and manage the risks,” Powell stated at Wednesday’s FOMC press conference. This provides some clarity on where regulation is heading, however, some insiders see mixed messages. FOX Business’ Eleanor Terrett reported that a major bank source viewed Powell’s remarks as a subtle warning: “I wouldn’t do it, but you make your own decisions.”

Powell’s Shifting Tone on Bitcoin

Powell’s stance on Bitcoin has noticeably softened. Last month, he dismissed it as a speculative asset similar to gold. Now, his messaging suggests more openness to the industry—while still emphasizing the risks. This is in contrast to last month, where Powell stated that the Fed is legally barred from holding Bitcoin, distancing itself from Trump’s proposal to establish a national Bitcoin reserve.

Powell hinted that Congress—not the Fed—should be responsible for clearer crypto regulations. That alone was enough for some to interpret his words as a step toward legitimacy for the industry, and just like magic, the vibes on the X timeline were once again immaculate!

The Fed Holds, But Will It Cut?

While the Fed held rates steady, the European Central Bank took a different approach, cutting interest rates by 25 basis points in response to slowing economic growth. The ECB’s move raises the question—will the Fed follow suit?

So far, Powell remains firm that inflation is still too high to consider rate cuts. However, if economic conditions shift, the Fed may have no choice but to pivot. Historically, lower rates have fueled risk assets such as Bitcoin.

If the Fed signals a rate cut is coming, BTC’s next move could be even bigger and we’ll be in for a massive couple of months, if all goes to plan!

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Daily Bites: Today’s Top Articles

Todays Markets

Catch up with Landy in yesterday’s Wednesday Check-In:

Ordinals

Fomojis break into the top 5 for volume today, thanks largely to a massive 16 asset sweep totaling just under $16,000! What do they know?!

The rest of the market has been holding the line the past couple of days. Quantum Cats are slightly up from the start of the week, while everything else has been tightly ranged.

Based Angels and Pizza Ninjas are in the green, but Clay 44 steals the spotlight with a huge 51% surge.

Runes

Today’s board is looking aesthetically pleasing, with more green than red—but truth be told, there’s not much progress over the past week.

We may have passed peak FUD in the Ordinals vs. Runes battle, and for now, all eyes are on what potential enhancements Hyperliquid might bring.

Until we get more clarity (if any), things likely won’t change much in the short term—unless we finally get T1 CEX listings. That said, patience is wearing thin, with many openly mocking the delays now.

Todays Opportunities

Giveaways

There is currently one raffle live, so join the Discord below and make sure you have notifications on so you don’t miss out!

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Nothing in this or any other ExtraOrdinal Daily publication should be construed as financial or investment advice.

We trust this ExtraOrdinal Daily provided you with the information, insight and opportunities needed to have an ExtraOrdinal day! If you have any questions, suggestions, or a desire to contribute, reach out in the ExtraOrdinals Discord!

See you tomorrow!