Market Update 22nd January 2025
By Manoj Dharra
The cryptocurrency market enjoyed a bullish rally on Wednesday, fueled by renewed optimism surrounding regulatory changes in the U.S. and a favorable political shift under President Donald Trump’s new administration. Major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) posted strong gains, marking a 4% increase in the broader market cap, which reached a remarkable $3.64 trillion.
This surge comes on the back of a significant policy shift announced on Tuesday, as the U.S. Securities and Exchange Commission (SEC) under new leadership unveiled plans to establish a task force aimed at developing a comprehensive regulatory framework for crypto assets. Republican Commissioner Mark Uyeda, appointed as the acting SEC chair by President Trump, and Commissioner Hester Peirce—widely known for her pro-crypto stance—are set to lead this initiative. The task force is designed to assist lawmakers in crafting crypto-related legislation, working closely with federal agencies like the Commodity Futures Trading Commission (CFTC) as well as state and international regulators.
“This is the first major move by the new administration to address crypto policy,” said industry experts, signaling the first policy win for the crypto sector under Trump’s leadership. Market participants are hopeful that Commissioner Peirce’s involvement will steer the framework toward progressive regulations that could foster industry growth.
In addition to the regulatory news, Bitcoin hit a new record high of $109,071 earlier in the week, spurred by investor excitement over the crypto-friendly changes in Washington. MicroStrategy’s purchase of 11,000 Bitcoins further bolstered market confidence, especially after the crypto market initially felt disappointed by the absence of crypto mentions in Trump’s Day One executive actions.
In other major developments, the U.S. banking industry is also showing signs of embracing cryptocurrency. Bank of America CEO Brian Moynihan revealed at the World Economic Forum in Davos that U.S. banks are ready to integrate crypto for payments, contingent on regulatory approval. This potential shift could dramatically transform the landscape for digital assets.
In the altcoin world, XRP remained steady at $3.18, up 3% from the previous day, while Solana’s popularity surged following the launch of the Trump family’s tokens on its network, further boosting its performance.
Meme coins, which had seen volatility in recent months, made a strong comeback. Dogecoin (DOGE) rose 8% to $0.3727, while Shiba Inu (SHIB) gained 4%, reaching $0.00002078. PEPE also surged 5%, trading at $0.00001601. The biggest winner among the meme coins, however, was the TRUMP token, which spiked by 21%, reaching $41.02 after President Trump briefly commented on its launch.
In another exciting sector, AI tokens saw substantial gains. The AI token market jumped 8.9% in just 24 hours, with several top performers making notable moves. NEAR Protocol increased by 5.9%, Internet Computer gained 2.4%, Render surged by 8.4%, and Bittensor soared by 10.8%, signaling growing investor interest in AI-driven blockchain technologies.
With the momentum from both the regulatory news and market developments, the crypto market is entering a new era, fueled by a combination of policy shifts, institutional adoption, and innovative technological growth.
You need to login in order to Like
