Crypto Takes the Stage at the World Economic Forum

Week of January 28 - February 3, 2024

U.S. President Donald Trump announced at the World Economic Forum online that he will push the United States to become the global capital of AI and digital currencies. He signed his first executive order on cryptocurrency, which includes key points such as banning the creation of a Central Bank Digital Currency (CBDC) in the United States and studying the feasibility of establishing a regulatory framework for stablecoins.

Mark Uyeda, Acting Chairman of the U.S. SEC, established a cryptocurrency task force to create clear guidelines for regulation and promotion. Commissioner Hester Pierce, known as "Crypto Mom" (due to her strong support for cryptocurrency), has been appointed to lead the initiative.

The CEO of BlackRock stated at the World Economic Forum that Bitcoin (BTC) prices could reach up to $700,000, driven by concerns over the devaluation of fiat currencies. Allocating 2-5% of an institutional investor’s portfolio to Bitcoin could push the price higher.

The CME derivatives market is preparing to launch futures contracts for Solana (SOL) and Ripple (XRP), which may begin trading on February 10, 2025. The contracts are currently under review by regulators and will be settled in U.S. dollars.

Asset management firms Osprey Funds and REX Shares have filed documents to establish ETFs that will be based on meme coins such as Dogecoin (DOGE), Bonk (BONK), and Official Trump (TRUMP), which is Donald Trump’s own meme coin launched on January 18, 2025. Bitwise has also filed for an ETF that invests in Dogecoin (DOGE), believing it is the 7th largest cryptocurrency by market cap.

Technical Analysis

technical-en-01@1-Jan-29-2025-12-34-49-0380-PM

Bitcoin (BTC)

Bitcoin (BTC) has corrected 10% from its recent high. Keep an eye on the first support level at $97,000. If it fails to hold, it’s advisable to pause investments as it could drop to test the next support at $91,000. However, if it holds at this level, the resistance target will be at $106,000. If it breaks above that, there’s a chance for a new all-time high.

Support: 3,100,000 THB / 91,000 USD
Resistance: 3,600,000 THB / 106,000 USD

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Ethereum (ETH)

Ethereum (ETH) has dropped 25% from its recent high. The price is currently in a slight decline. Watch for the support level at $2,800. If this level is broken, the trend will likely turn bearish. The first resistance level is at $3,480. If it breaks above this, there will be a chance for the trend to reverse into an uptrend.

Support: 96,000 THB / 2,800 USD
Resistance: 120,000 THB / 3,480 USD

technical-en-03@1-Jan-29-2025-12-34-49-0268-PM

Lido DAO (LIDO)

Lido DAO (LIDO) generated 17.53% returns in the past week. The trend is currently moving sideways within a triangle pattern. If it breaks through the resistance level at $2.50, the trend will reverse into an uptrend. However, if it pulls back, the support level where one could consider entering is at $1.40. If it falls below this level, a stop-loss should be enabled.

Support: 52 THB / 1.40 USD
Resistance: 84 THB / 2.50 USD

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1000SATS (SATS)

1000SATS (SATS) generated returns of 17.37% in the past week. The price was able to set a new high before pulling back. The key support level that can be used as an entry point is at $217. If this level is not held, a stop loss should be considered. The resistance target for taking profits is at $266. If it breaks through this level, the next target would be $300.

Support: 0.035 THB / 0.00010 USD
Resistance: 0.0065 THB / 0.00019 USD

Investment Trends

Although Donald Trump announced a presidential order to promote cryptocurrency, including declaring at the World Economic Forum that he would push the United States to become the cryptocurrency capital, the market opted to sell and take profit.

The United States is under pressure from China launching an AI model called DeepSeek, which is on par with U.S. AI models such as ChatGPT, but produced at a much lower cost. This has led to a sell-off in U.S. tech stocks, which is also impacting the cryptocurrency market.

However, the downside for Bitcoin (BTC) is still limited. The negative factors that have emerged so far can't definitively have a long-term negative impact on cryptocurrency. It is expected that the market will begin to absorb the positive news from the U.S.'s promotional plans that may follow.

This week, attention will be on the Federal Open Market Committee (FOMC) meeting of the U.S. Federal Reserve (Fed) on Wednesday, January 29, 2025. The market expects that interest rates will remain at 4.5%, but focus will be on the statement afterward regarding the economic outlook and interest rate policy. If the tone is more dovish, it will be positive for the market. However, if the Fed indicates fewer rate cuts ahead, it could negatively impact the market.

Additionally, attention should be given to the earnings reports of U.S. tech stocks starting this week. If the results are poor, it could negatively affect the Nasdaq index, as well as the cryptocurrency market.

Investment strategy: Focus on finding entry points to buy Bitcoin at support levels. It is expected that altcoins, in general, will remain weak, except for certain coins that have support from developments related to the U.S. SEC’s actions in promoting cryptocurrency.

References

Disclaimers

Cryptocurrencies and digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to their own risk profile.
Past returns or performance of digital assets do not guarantee future returns or performance.

Remark: views, information, knowledge, and opinions are considered as content that come from individuals involved. They do not constitute an expression of Bitazza and its employees. Neither the email nor the content presented constitute investment advice.

Topics: Crypto Weekly

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