Stronger Jobs Data Challenges Bitcoin as Markets Brace for Fed Policy

DAILY MARKET OVERVIEW

Jobs Data Hits Bitcoin

👋 Hey Crypto Enthusiasts! Today’s updates: Bitcoin reacts to strong jobs data, crypto firms rally behind Trump’s inauguration, and plans for the first Senate crypto subcommittee take shape. Let’s dive in. 🚀

Bitcoin Slumps After Strong Payrolls Data 📉

Bitcoin faced downward pressure today after U.S. labor market data exceeded expectations, fueling concerns about delayed interest rate cuts.

The December report showed a 256,000 rise in nonfarm payrolls, well above the forecasted 164,000. The unemployment rate dropped to 4.1%, reinforcing the strength of the labor market.

This robust data complicates expectations for Federal Reserve policy, as a slower pace of interest rate cuts in 2025 could weigh on speculative assets like Bitcoin. Market participants now turn to the January 15 CPI report for further signals, with volatility expected in the interim.

Crypto Giants Back Trump with Millions 💰

Crypto companies are making headlines with major contributions to Donald Trump’s inaugural fund.

• Circle donated $1 million in USDC, while Ripple topped the list with $5 million in XRP. Coinbase, Kraken, and Robinhood also joined the effort, with Robinhood contributing $2 million.

These donations secure exclusive perks, including gala tickets and private events with key members of the administration. More importantly, they reflect the crypto industry’s commitment to aligning with Trump’s pro-crypto agenda. The inaugural fund has raised over $170 million, with the sector playing a significant role in its success.

Jeremy Allaire, CEO of Circle, celebrated USDC’s acceptance as part of the fund, highlighting stablecoins' increasing influence in U.S. financial policy.

Trump to Launch First Senate Crypto Subcommittee 🏛️

The Senate Banking Committee is making history with the creation of a dedicated crypto subcommittee. 

Senator Cynthia Lummis, a long-time crypto advocate, is expected to chair the group, which will focus on establishing clear and consistent regulations for the industry.

This initiative is part of the Trump administration’s broader commitment to fostering crypto innovation. With key appointments like Senator Lummis and the significant involvement of crypto companies in the administration’s early days, the stage is set for major policy shifts.

Between macroeconomic challenges, political alignment, and regulatory developments, the crypto landscape is poised for transformation in 2025. Stay tuned for more updates as these stories unfold! 🚀

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Introducing jAssets: A New Way to Trade Real-World Asset Tokens

Jellyverse, the leading DeFi ecosystem on the growing Sei Network, is launching jAssets on January 21st. This platform allows users to lock crypto collateral and mint synthetic tokens tied to real-world assets (RWAs), enabling decentralized access to assets like Tesla, Apple, NVIDIA, and MicroStrategy.

👀 What Are jAssets?

jAssets are Synthetic Real-World Asset tokens within the Jellyverse ecosystem. These tokens represent the value of real-world assets, but unlike traditional RWAs, they are backed by over-collateralized crypto positions instead of the asset itself. Price feeds from Pyth Network oracles ensure jAssets closely track their underlying asset's value.

For Example

• jTSLA: Mirrors Tesla’s stock price.

• jAAPL: Reflects Apple’s stock.

• jUSD: A stablecoin pegged to the U.S. dollar.

🤔 How Do jAssets Work?

The system operates using Vaults, which are individual collateralized debt positions.

Here’s how it works:

1. Lock Collateral: Users deposit supported collateral like SEI, wBTC, wETH, or USDC into a Vault. The system ensures over-collateralization, meaning the value of locked collateral exceeds the value of minted jAssets.

2. Mint jAssets: Once collateral is locked, users can mint tokens such as jUSD, jTSLA, or others. These tokens can then be traded, transferred, or used in DeFi.

3. Redeem Collateral: To close a Vault, users repay their borrowed jAssets, which are burned, allowing them to reclaim their collateral.

❓️ Why Use jAssets?

The system offers significant advantages:

• 24/7 Trading: jAssets enable trading at any time, unlike traditional stock markets.

• Fractional Ownership: Users can access smaller fractions of high-value assets.

• Decentralized Access: Open to anyone with a compatible wallet.

• Over-Collateralized System: The platform ensures the dollar value of locked collateral exceeds the value of issued jAssets.

• Liquidation Protections: Vaults falling below the Individual Minimum Collateral Ratio (IMCR) are subject to liquidation to maintain system stability.

❔ Which Assets & Collaterals Will be Available at Launch?

The initial jAssets lineup includes:

• jUSD (stablecoin pegged to the U.S. dollar)

• jTSLA (Tesla stock)

• jAAPL (Apple stock)

• jNVDA (NVIDIA stock)

• jMSTR (MicroStrategy stock)

• A Mystery Asset to be revealed on launch day 👀

Collateral types supported at launch include SEI, wBTC, wETH, USDC, USDT, FRAX, and JLY.

Mark Your Calendars for January 21st

The launch of jAssets marks a significant milestone for the Jellyverse ecosystem, providing decentralized access to synthetic RWAs backed by over-collateralized crypto assets. With its robust design and user-friendly features, jAssets brings traditional finance closer to the decentralized world.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

Coinbase Subpoenaed by CFTC in Polymarket Probe
Coinbase alerts users about a CFTC subpoena seeking customer information tied to Polymarket’s investigation amid regulatory scrutiny.

Hong Kong Launches Blockchain Incubator for Banks
The HKMA introduces a supervisory incubator to help banks adopt blockchain safely, focusing on tokenized deposits and innovation.

Standard Chartered Secures EU Crypto Custody License
Standard Chartered obtains a Luxembourg license under MiCA to expand its crypto custody services for institutional EU clients.

Usual Money Faces Backlash Over USD0++ Changes
Usual Money's staked USD0++ drops 8.5%, sparking criticism after redemption updates unexpectedly alter token liquidity and pricing dynamics.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

Altcoin Daily - The Bitcoin Crash Today Is A 'Massive' Distraction (10.01.2025 Summary)

Anthony Scaramucci, a prominent investor and former White House communications director, believes the current Bitcoin crash is a distraction from its long-term potential. He argues that Bitcoin’s volatility is part of its growth and likens its current state to the early days of the internet - immature, yet full of promise. For him, Bitcoin represents more than an investment; it’s a foundational digital asset, akin to “digital gold.”

Scaramucci is optimistic about Bitcoin’s future, especially under supportive U.S. policies. He predicts that with regulatory clarity and increased adoption, Bitcoin could hit $200,000 by the end of 2025. However, he acknowledges the risks, emphasizing that unpredictable events, such as policy reversals or technological issues, could impact its trajectory.

Beyond Bitcoin, Scaramucci highlights altcoins like Solana, Polkadot, and Avalanche as promising investments due to their technological advancements and growing ecosystems. He particularly praises Solana for its speed and efficiency, setting a long-term price target of $2,500. Despite short-term market fluctuations, he remains bullish on the broader cryptocurrency space, emphasizing the importance of patience and persistence.

On regulation, Scaramucci sees a significant opportunity for the U.S. government to embrace crypto, potentially using Bitcoin as a strategic reserve asset. He envisions policies that foster innovation while ensuring safety and fairness in the industry.

For investors, his advice is straightforward: start small, invest consistently, and stay patient. He stresses the importance of holding onto quality assets through volatility, drawing from his own mistakes of selling too early. To Scaramucci, crypto isn’t just an investment trend; it’s a transformative force reshaping global finance.

Lark Davis - Crypto Holders - DON'T PANIC (10.01.2025 Summary)

Lark Davis urges crypto investors not to panic amid Bitcoin’s recent price fluctuations, emphasizing the importance of maintaining perspective during volatile market conditions. He notes that Bitcoin is bouncing back within a well-established range and highlights the possibility of a "double bottom" pattern forming. While acknowledging short-term uncertainty, Davis remains optimistic about Bitcoin's long-term outlook.

He explains that much of the market's unease stems from macroeconomic factors like the strengthening U.S. dollar and concerns over inflation. However, Davis points out that a weaker dollar under a new Trump administration could create favorable conditions for Bitcoin and other risk assets. He predicts that quantitative easing (QE) may return soon, which would likely provide a significant boost to crypto markets.

Addressing investor anxiety, Davis emphasizes the cyclical nature of markets. He advises experienced holders to view current dips as part of the larger market rhythm, while newcomers should approach investments with a long-term mindset. He also discusses the potential for altcoin seasons, predicting that liquidity injections and easing policies could drive significant gains for various cryptocurrencies.

On altcoins, Davis expresses interest in projects like Solana and Polkadot but emphasizes the importance of focusing on emerging trends like AI-related blockchains. He remains bullish on the broader crypto space, advocating for consistent investments and patience through market volatility. Davis also highlights the growing utility of decentralized exchanges (DEXs), encouraging investors to explore on-chain solutions for trading and asset management.

For Davis, success in crypto investing boils down to staying informed, remaining patient, and avoiding emotional reactions to short-term market movements. He concludes by encouraging viewers to assess the macro trends shaping the market and to stay proactive as conditions evolve.

CRYPTO MEMES

How it Feels Not Selling During the Dip ❕