Crypto markets are poised for a dynamic start to the new year, with a series of important events to reshape the mood and volumes of trade. From macroeconomic decisions by the Federal Reserve to protocol updates and legal proceedings, here are the key developments that demand close attention from investors:
#1 Crypto Awaits FOMC Summary Release (Jan 8)
On Wednesday, the minutes from the December Federal Open Market Committee (FOMC) meeting are expected to be released, offering insights into policymakers' deliberations and possible hints about upcoming rate decisions. The minutes shed light on the Federal Reserve's latest approach to controlling inflation while supporting economic stability.
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The Fed cut US interest rates three times in a row after a tense debate at the end of 2024, although he lowered his forecast for total annual rate cuts this year from four down to two. Investors also remember Fed Chairman Jerome Powell's statement that the decision to cut rates was “a close call.” This underlines the importance of the upcoming minutes for anyone who wants to know how hawkish or dovish the central bank could be through 2025.
#2 TORChain Foundation Integration
Cross-chain liquidity platform THORChain has confirmed that it will start supporting Base – currently the 2nd largest by volume – next week. According to THORChain development updates, this integration enables more efficient ETH-BTC swaps by avoiding Ethereum mainnet congestion and unlocking new liquidity avenues through cbBTC. Market watchers expect a significant increase in transaction volume as the community takes advantage of cheaper ETH-BTC swaps and expanded cross-chain capabilities.
#3 Jupiter's Airdrop Monitor
Jupiter, a leading Solana-based decentralized exchange (DEX) aggregator, is set to release its airdrop eligibility checker this week. This event is part of “Jupuary”, a multi-year airdrop campaign slated for January 2025 and 2026, when the protocol will distribute a total of $700 million worth of JUP tokens to its user base.
The project has stated that this airfield aims to “grow the pie,” expanding the Jupiter community and encouraging participation in one of the world's most important decentralized autonomous organizations. world In addition, Jupiter's Castanbul conference at the end of January will feature a live burn of 30% of the token's supply.
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#4 Standard tax change implementation (January 7)
In the field of decentralized finance (DeFi), the USUAL ecosystem is going to implement its tax revolution on January 7, 2025. This marks an important transformation: USUAL holders will start the involved in their tokens receiving a share of the protocol's revenue. By directly rewarding stakeholders with transaction fees, the protocol hopes to foster a stronger and more engaged user base.
#5 Kwon's second audition in the US (January 8)
The founder of Terra Do Kwon is facing a a critical moment in his legal battle by US authorities, with his second hearing scheduled for January 8. After being extradited to the United States, Kwon now faces a maximum penalty of 130 years in prison if convicted of the broad fraud charges outlined in the 79 indictment. Department of Justice page.
The DOJ's case adds new layers of allegations to those explored in the SEC's civil proceedings, including allegations that Kwon acted with clear criminal intent to defraud investors. As prosecutors build their case around five alleged fraud schemes, among others, falsely advertising Terra's stability, manipulating the Luna Foundation Guard and voiding Terra's use by Chai .
#6 GMX Trading Fee Reduction (Jan 6)
Trading with a focus on derivatives GMX taking specific action to encourage higher trading volumes by reducing fees across all markets. Effective January 6, 2025, GMX will cut open and close fees from 5 basis points (bps) and 7 bps to 4 bps and 6 bps, respectively. The via X team said: “To kick off 2025 in style, GMX is lowering transaction fees across all markets! Starting this Monday, January 6, the open and close fees for all positions will decrease from 5 bps / 7 bps to 4 bps / 6 bps.”
However, rather than a flat rate of 4.5 bps, the new structure includes a sliding scale: traders who enter positions that improve the balance between briefs pay the fee of 4 minimum bps, and those who raise imbalances pay 6 bps. According to GMX, “This change ensures a fair open interest, which in turn keeps financing fees and price impact low. “
Meanwhile, GMX has revised liquidation fees to 20 bps for asset-backed markets and 30 bps for synthetic markets. The developers of GMX believe that, together, these measures will reduce transaction costs, promote fair market participation, and improve the overall user experience.
At press time, the total crypto market cap stood at $3.45 trillion.
Featured image created by DALL.E, a chart from TradingView.com
