- BTC remained in a tight price range ahead of U.S. inflation data.
- Tether will begin minting USDT on Bitcoin and Lightning Network, while Kraken has re-launched U.S. staking services.
Bitcoin [BTC] has been tightly consolidating between the $100K-$105K price range post-FOMC update. As expected, the Fed held the interest rate unchanged, stating that ‘inflation was somewhat elevated.’
Source: CoinMarketCap
At press time, the king coin was valued at $104K, a few hours before the key U.S. PCE (Personal Consumption Expenditure) price index report.
The data would paint a more complete picture of the U.S. inflation status and directly affect future rate cut expectations and markets.
A cooler-than-expected inflation report could lift markets, while a hotter-than-expected data, could tank BTC into the weekend. Per the liquidation heatmap, key levels to watch were $97.5K, $108K, and $110K.
Tether on Bitcoin, Kraken resumes staking
In other developments, Tether announced plans to launch USDT minting on Bitcoin’s base layer and layer 2 Lightning Network.
The stablecoin issuer noted that the update is powered by Taproot Assets, a new protocol on the Bitcoin network. This protocol enhances functionality by allowing tokenized assets like USDT.
Reacting to the update, Paolo Ardoino, CEO of Tether, said,
“By enabling USDt on the Lightning Network, we are not only reinforcing Bitcoin’s foundational principles of decentralization and security but also creating practical solutions for remittances, payments, and other financial applications that demand both speed and reliability.”
Another positive update, especially for U.S. users, is Kraken’s resumption of crypto staking after a two-year hiatus. The SEC had previously forced the exchange to shut down the service.
However, on the 30th of January, Kraken unveiled a new on-chain staking service. Clients can stake part of their tokens for a certain period based on the blockchain and earn rewards minus fees.
The services will be offered to 39 U.S. states and will include Ethereum[ETH], Solana[SOL], Polkadot[DOT], Cardano [ADA], and others.
Kraken’s Head of Consumer, Mark Greenberg, termed the move “positive” for the U.S. crypto space.
“Launching this new staking product in the U.S. is an overwhelmingly positive development, not just for Kraken but also for the entire U.S. crypto space.”
Bitwise gets the SEC nod
Finally, Bitwise got the SEC nod for its combined BTC and ETH ETF application. The regulator approved its 194-b filing (rule change) and now waits for a sign-off on its S-1 form (registrant statement) before being listed for public trading.
Commenting on the update, Bloomberg ETF analyst, James Seyffart, noted that recent movements on S-1’s signaled the products, including similar applications for Hashdex and Franklin Templeton, could begin trading soon.
Seyffart said,
“There was movement with Hashdex yesterday and today. There were updates filed with relation to their S-1 and 19b-4. This indicates to me that these products are likely to list in the very near future”
