2025 has kicked off on a positive note, with Bitcoin back to six figures, trading above $100,000. Despite climbing by almost 8% over the past week, BTC is yet to reclaim its recently established all-time high above $108,000. However, Bitcoin’s divergence from equities suggests a reduced correlation, raising hopes for a bullish 2025 and new all-time highs. Weakening Bitcoin-Equity Correlation There has been a notable shift in the correlation between cryptocurrency and equities, particularly Bitcoin and the S&P 500. Since Donald Trump was elected as the 47th US President in November 2024, the two markets have been closely tied. However, data from Santiment demonstrated Bitcoin gaining momentum, surging by over 3% in a single day compared to the S&P 500’s modest 0.4% rise. This divergence is significant, as it suggests Bitcoin might be decoupling from its perceived role as a “high-leveraged tech stock,” a reputation it has held for much of the past three years. Historically, Bitcoin and the broader crypto market have achieved their strongest bull runs during periods of low correlation with traditional equity markets. Experts also suggest that Bitcoin is ripe for the next leg up, with a crucial milestone being $140,000 in the coming months. Crypto Market in Later Stages of Bull Cycle? This decoupling coincides with broader market indicators suggesting that the cryptocurrency market has entered the later stages of its current bull cycle, which began in January 2023. As noted by CryptoQuant data , Bitcoin has seen significant growth in both price and duration, supported by a substantial influx of new and existing investments. The percentage of Bitcoin traded for less than a month, measured by realized market cap (UTXO), has reached 36%. While this is lower than past cycle peaks, the long-term trend remains downward, indicating the market may peak by the first or the second quarter of 2025. In fact, analysts predict a sharp rise in this ratio 2-4 times before the market overheats, likely triggering the next bear cycle. The post Bitcoin (BTC) Decoupling From Wall Street: A Signal for New Records in 2025? appeared first on CryptoPotato .
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
BiG Halts Crypto Transfers, Citing Compliance with EU Guidelines
In a significant move impacting Portugal’s crypto industry, Banco de Investimentos Globais (BiG) has announced a halt on fiat transfers to cryptocurrency platforms. The bank cited compliance with European Union (EU) guidelines and Bank of Portugal regulations addressing digital asset risks and anti-money laundering (AML) laws. While some Portuguese banks, such as Caixa Geral de Depósitos , still allow such transfers, BiG’s decision raises concerns about its potential impact on the broader crypto market. Why Did BiG Halt Crypto Transfers? 1. EU Guidelines on Crypto Risks The European Union has ramped up efforts to regulate cryptocurrency activities amid concerns over financial crime and investor protection . BiG’s decision aligns with these stricter regulatory requirements, particularly regarding AML compliance . 2. Bank of Portugal’s Role Portugal’s central bank has issued warnings about the risks associated with digital assets , urging financial institutions to adopt stringent compliance measures. BiG’s move may be a preemptive step to avoid potential regulatory scrutiny or penalties. The Broader Impact on Crypto Users 1. Frustration Among Crypto Enthusiasts Crypto users in Portugal have expressed frustration, arguing that BiG’s move may limit access to global cryptocurrency markets. Critics see this as a step backward for a country previously seen as a crypto-friendly jurisdiction . 2. A Push Toward Blockchain Solutions Some industry experts predict that such restrictions may drive users toward decentralized financial systems (DeFi) and peer-to-peer blockchain solutions , bypassing traditional banks altogether. Blockchain platforms offering direct on-ramp solutions could see increased adoption as a result. Comparing BiG with Other Portuguese Banks 1. Caixa Geral de Depósitos Portugal’s largest bank, Caixa Geral de Depósitos, continues to allow fiat transfers to cryptocurrency exchanges, maintaining a more balanced approach to regulatory compliance. This could provide a competitive advantage for Caixa in retaining crypto-savvy customers. 2. Diverse Banking Policies The disparity in policies among Portuguese banks underscores the lack of uniformity in how financial institutions interpret and implement crypto-related regulations. Criticism and Controversies 1. Stifling Innovation Critics argue that BiG’s move could stifle innovation and discourage crypto-related entrepreneurship in Portugal. The decision may deter foreign investment in the country’s growing blockchain and cryptocurrency sectors. 2. Privacy and Decentralization Restricting access to cryptocurrency platforms may inadvertently strengthen the case for privacy-focused and decentralized financial systems . Many users view blockchain as a way to regain control over their financial activities without reliance on traditional banks. What’s Next for Crypto in Portugal? 1. Evolving Regulations The European Union’s Markets in Crypto-Assets (MiCA) regulation, set to be implemented in 2025, could provide greater clarity for banks and crypto users alike. Until then, financial institutions may adopt varying degrees of caution when dealing with digital assets. 2. Opportunities for Blockchain Startups Restrictions from traditional banks could create opportunities for blockchain startups to innovate and fill the gap left by institutions like BiG. Companies offering crypto-friendly financial services might see an uptick in demand. FAQs Why did BiG halt crypto transfers? BiG cited compliance with EU guidelines and Bank of Portugal regulations addressing digital asset risks and AML laws. Are all Portuguese banks halting crypto transfers? No, banks like Caixa Geral de Depósitos continue to allow fiat transfers to cryptocurrency platforms. How might this affect crypto users in Portugal? BiG’s decision could push users toward decentralized financial systems and blockchain-based solutions. What are the risks associated with crypto transfers? Risks include potential involvement in money laundering, fraud, and regulatory non-compliance. What is MiCA, and how does it relate to this issue? MiCA (Markets in Crypto-Assets) is an EU regulation aiming to establish a comprehensive framework for digital assets, expected to bring more clarity in 2025. Conclusion BiG’s halt on crypto transfers highlights the growing tension between traditional banking systems and the cryptocurrency industry. While the decision aligns with regulatory concerns, it also raises questions about the future of financial innovation and user autonomy in Portugal. As the regulatory landscape evolves, banks and crypto platforms will need to strike a balance between compliance and accessibility to ensure sustainable growth in the digital asset space. To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news , where we delve into the most promising ventures and their potential to disrupt traditional industries. Crypto Potato
Market Analysis Report (08 Jan 2025)
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