Follow The Federal Reserve (FED) independence and Crypto Assets market trends

Macroeconomic Environment

Former Federal Reserve Vice Chairman Quarles recently stated that even if Trump is elected president again, it will not affect the independence of the Federal Reserve and economic stability. He pointed out that there is a misunderstanding among the public regarding the independence of the Federal Reserve; the president can express opinions on Federal Reserve policy, but this does not mean that the Federal Reserve will lose its independence. Quarles believes that tariff policies may prompt the Federal Reserve to lower interest rates, rather than directly causing inflation. He also expects that if Trump is elected, he may deport a large number of illegal immigrants, but this will not have a significant impact on the labor market.

This comment comes just as the Consumer Price Index report is set to be released, which may show that U.S. inflation cools only slightly by the end of 2024, potentially affecting The Federal Reserve (FED)'s future rate cut decisions.

Crypto Assets Market Dynamics

Comparison between Ethereum and Solana

A certain digital asset institution pointed out in its 2025 outlook report that Ethereum has obvious advantages in long-term development while also acknowledging Solana's rapid growth. The report emphasizes Ethereum's strong fundamentals, such as developer activity, TVL, and stablecoin supply, which support its long-term prospects. Although Solana's revenue and TVL are growing at a faster rate, the report believes that most of its revenue comes from Meme coin trading, and this dependency is seen as a cyclical trend.

The report further points out that Solana's dependence on Meme coins is similar to Ethereum's use of certain DEXs, but believes that the connection between Ethereum's fundamentals and speculation is relatively weak, making it more stable in the long term. Both networks plan to upgrade, with Solana's Firedancer upgrade aimed at increasing transaction speed, while Ethereum's Prague/Electra (Pectra) upgrade focuses on enhancing functionality, scalability, and user security.

Institutional Investment Bitcoin Trend

Italy's largest banking group has made its first investment in Crypto Assets, purchasing 11 coins, with a total value of approximately 1 million euros. Although the bank has confirmed the transaction, it has not disclosed the motivation for the investment or its future Crypto Assets strategy. This bank is relatively advanced in the field of blockchain and Crypto Assets and has previously piloted the issuance of digital bonds on Polygon.

The trend of large institutional investors in Bitcoin is becoming increasingly significant, with some software companies and investment institutions continuously purchasing Bitcoin, becoming pioneers of this trend.

Bitcoin price rebounds

After news broke that Trump intends to sign an executive order supporting Crypto Assets, the price of Bitcoin rebounded to $94,000. These orders may overturn key regulatory measures, including the U.S. Securities and Exchange Commission's Staff Accounting Bulletin No. 121 (SAB 121). This bulletin requires companies holding customer Crypto Assets to record these assets as liabilities on their balance sheets, and has been criticized by the industry.

With the news breaking, the Crypto Assets market experienced a strong rebound, with Bitcoin climbing from $89,000 to $95,000; Ethereum also rebounded from below $3,000 to $3,100.

Development in the Web3 Field

ANIME token is about to be launched

The ANIME token is scheduled to launch on the Ethereum and Arbitrum platforms in January 2025, with 50.5% of the tokens allocated to the community. ANIME aims to drive the transformation of the anime ecosystem through collaboration with decentralized brands, making it a community-owned creative economy that provides participation opportunities for over 1 billion anime fans.

Affected by this news, the Azuki series NFTs generally rose, with Azuki, Azuki Elementals, and Beanz experiencing daily increases of 17.45%, 20.25%, and 22.86%, respectively.

AI project development

A team composed of members from several well-known technology companies and investment institutions has launched a new project called Aiccelerate. This project is positioned as a DAO that emphasizes both investment and development, focusing on promoting decentralized, open-source AI development and supporting high-potential projects within different ecosystems.

The team is developing the first AI agent and plans to share more information in the coming weeks. The project is also collaborating with Arc to transfer 100% of the AICC tokens to the Arc Treasury and plans to use a portion of the tokens to create liquidity pairs to fund ecosystem initiatives and incentivize developer contributions.