Cryptocurrency
A16z Joins Legal Fight Against Treasury and IRS Over DeFi Rules
Michele Korver, head of regulation at Andreessen Horowitz’s blockchain arm, A16z Crypto, has voiced strong opposition to the US Treasury and IRS’s newly issued broker reporting rule.
In an official statement, she claims that it jeopardizes the future of decentralized finance (DeFi) innovation in the United States.
Treasury’s “Midnight” Reporting Rule Lambasted
In a December 30 tweet, Korver outlined A16z’s support for a lawsuit filed by the DeFi Education Fund, the Blockchain Association, and the Texas Blockchain Council. This lawsuit aims to block regulations stemming from the Infrastructure Investment and Jobs Act, which seeks to expand the definition of brokers in a way that could include DeFi trading front-ends.
These platforms, which allow users to interact with decentralized protocols, do not directly facilitate transactions, a distinction highlighted in the lawsuit. The groups argue that the rule imposes undue burdens on DeFi entities, violates the Administrative Procedure Act (APA), and exceeds the Treasury’s statutory authority.
Korver described the rulemaking process as a rushed “midnight” decision that undermines DeFi’s potential to deliver accessible, efficient, and consumer-focused financial services. She further stated the broader implications of the rule, warning that it could stifle innovation and drive DeFi operations offshore.
A16z Crypto even went on to reiterate that it would defend the sector through multiple avenues, including legal challenges and legislative advocacy with Congress and the incoming executive branch. Korver reassured developers that industry attorneys are working to protect this technology, stating that these efforts are critical to preserving the transformative potential of decentralized financial systems.
“We believe that this final rule exceeds Treasury’s statutory authority, violates the Administrative Procedure Act (APA), and is unconstitutional. DeFi builders should feel confident that industry attorneys are working hard to protect this technology. We will keep fighting on all fronts – in the courts, and with the help of Congress and the incoming executive branch.”
IRS Attracts Backlash
Jake Chervinsky, a prominent voice in crypto policy and head of policy at Blockchain Association, also weighed down on the recent developments and pointed out the swift legal response by the crypto industry on the broker rule, which was challenged within 24 hours of its announcement. Chervinsky praised the industry’s evolution of policy infrastructure in the USA over the last couple of years and expressed optimism about the future of crypto and its ability to push back against regulatory overreach.
This stance has been echoed by other prominent figures in the crypto space. Unsiwap founder Hayden Adams, for one, criticized the rule’s timing and potential impact while suggesting that it represents a deliberate attempt to hinder DeFi innovation. He expressed confidence in legal and legislative challenges to overturn the rule.
Meanwhile, Uniswap CLO Katherine Minarik also said that “there is no good reason for the IRS’s new rule misclassifying DeFi technology as brokers.” The exec added,
“It races past the plain limits set by Congress, it will produce far more pointless paperwork than the IRS can handle, it contradicts itself throughout on the tech, and it imposes a burden that could cripple DeFi entirely. All so we can … conduct unnecessary mass surveillance on crypto transactions by everyday Americans. DeFi is the antidote to debanking. The last thing we can afford to do is try to choke it to death next.”
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Cryptocurrency
Analysts Post Thrilling Bitcoin Price Predictions for 2025: Where’s the Top?
The little orange cryptocurrency was one of several digital assets in this segment that walloped 2024 gains from investing in US stocks like those in the S&P 500 Index or Nasdaq Composite.
Others, like Ripple’s XRP tokens for international settlements between large institutions, performed even better than Bitcoin. XRP was up 247% by Christmas Day in December. It notched 271% for the entire year on Wednesday.
But here’s how some leading crypto market analysts expect Bitcoin’s price to carry through some point over the 2025 calendar year.
For a basis of reference, Bitcoin traded at an average crypto exchange rate of $94,700 Wednesday evening US Eastern Time, according to data from CoinGecko.
Bitcoin Price Predictions: $80,000 – $160,000
Peter Brandt: $78,000
Brandt made a prediction on Sunday, Dec. 29, targeting a big drop in Bitcoin’s price to the $78,000 level, based on a 45-day head and shoulders top pattern.
This is a head and shoulders top pattern. It might complete and take price to $78,000; it might fail with a thrust hire: or, it might morph into something else. But as it stands right now, it is a head and shoulders top and must be chartist dealt with for what it is. pic.twitter.com/b9AUUO7ddL
— Peter Brandt (@PeterLBrandt) December 29, 2024
If he’s right, BTC will have to take one step back before it advances toward the more bullish price targets for 2025. But Brandt also cautioned in the comment thread on his post, “Charts do NOT predict anything. Charts merely suggest possibilities.”
The famous stock chart technical analyst is bullish for XRP in 2025, but his outlook for Bitcoin’s price is bearish.
CoinShares: $80,000
European crypto hedge fund CoinShares’ head of research, James Butterfill, recently told CNBC that $150,000 BTC is possible in 2025. But he said a bearish correction to $80,000 is also on the cards.
“Disappointment surrounding Trump’s proposed crypto policies and doubts about their enactment could prompt a significant market correction,” Butterfill warned.
Bullish 2025 BTC Targets: $160,000 – $250,000
Standard Chartered: $200,000
British multinational bank Standard Chartered’s research head Geoff Kendrick says his office is targeting $200,000 BTC in 2025. He added that the entry of the United States government into the Bitcoin race is likely to fuel that rally.
“Even a small allocation of the USD 40tn in US retirement funds would significantly boost BTC prices,” Kendrick noted.
“We would turn even more bullish if BTC saw more rapid uptake by US retirement funds, global sovereign wealth funds (SWFs), or a potential US strategic reserve fund.”
Nexo: $250,000
Swiss-based crypto fund manager Nexo’s chief product officer, Elitsa Taskova, told CNBC, “We see Bitcoin more than doubling to $250,000 within a year.”
She points to ongoing trends in adoption by institutional finance and social indicators for the bullish outlook in 2025.
“These projections align with ongoing trends and social markers: increasing recognition of Bitcoin as a reserve asset, more Bitcoin and crypto-related exchange-traded products (ETPs), and stronger adoption,” Taskova said.
Bottom Line for Investors
Like stocks, cryptocurrency assets are held at risk. But for more than a decade, Bitcoin has delivered world-class returns during bull markets. That means it’s possible for a small allocation to BTC can substantially speed individual investment portfolios toward reaching personal finance goals.
Nevertheless, investors should do their own research before allocating funds into any asset, no matter its returns over the past year or two.
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Cryptocurrency
From $2 to $11: Popular Analyst Maps Out Ripple’s (XRP) Next Big Move
TL:DR;
- XRP rebounded from its most recent price slip below $2, but the asset might not be out of the woods yet.
- However, a popular crypto analyst suggested that a potential decline toward that level again could be beneficial for XRP’s long-term price movements.
Ripple’s cross-border token went on a massive run after the US elections, skyrocketing by triple digits at one point and peaking close to $3. All of these gains came in the span of a few weeks, but the asset lost momentum at the start of December.
It tumbled hard on several occasions in the following weeks, with the latest decline to under $2 transpiring last Monday – December 30. This came during the most recent market-wide correction.
However, the popular crypto asset reacted well to this decline and shot up by over 20% since then, currently sitting at around $2.45. Consequently, XRP has regained its spot as the third-largest cryptocurrency by market cap by surpassing Tether’s USDT.
According to analyst Ali Martinez, XRP still stands below a steep resistance level of $2.73, which has stopped its price ascent on a couple of occasions during this rally. If the asset fails to overcome it soon, it could slump back to $2.05.
However, Martinez actually believes that such a scenario could be a blessing in disguise for XRP, which could catapult it toward a fresh all-time high above $3.4 (CoinGecko data) and all the way up to $11.
$XRP is still consolidating within the pennant of a massive bull pennant pattern. Until the $2.73 resistance is broken, a pullback to $2.05 remains possible before a potential breakout to $11! pic.twitter.com/ET39FJMtAc
— Ali (@ali_charts) January 4, 2025
It’s safe to say that $11 sounds quite extraordinary for XRP. Such a price tag would put the asset’s market cap at well over $600 billion, which would help it top Ethereum in that regard. Although this might sound plausible under a friendlier Trump administration, it’s still a long way away and falls under the category of exaggerated price predictions.
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Cryptocurrency
2 Strong Indicators US Investors Are Flocking Back to Bitcoin
The landscape around bitcoin after the last FOMC meeting for 2024 in the US turned upside down, with local investors pulling funds out of the ETFs and the Coinbase Premium Index declining to yearly lows.
However, on-chain data shows that US investors are back on the BTC front, with massive accumulations.
ETFs Demand Returns
During the aforementioned meeting at the highest levels in the US central bank, Fed Chair Jerome Powell warned that there might be fewer or even no rate cuts in 2025 due to rising inflation. US investors reacted immediately and started pulling funds out of riskier assets like BTC and crypto.
Within the next four trading days, they withdrew more than $1.5 billion out of the US-based Bitcoin exchange-traded funds. December 26 was the only day well in the green, as December 27, 30, and January 2 saw more net outflows. Even BlackRock’s IBIT, the world’s largest Bitcoin ETF, was posting negative records.
However, this changed on Friday, January 3. The total net inflows for the day shot up to $908.1 million, according to FarSide data. IBIT was actually second with $253.1 million, trailing behind Fidelity’s FBTC with $357 million. Ark Invest’s ARKB also had a strong presence, attracting $222.6 million. This became the best day in terms of net inflows since November 21.
Coinbase Premium Index
The other metric that showcases US investors’ overall behavior toward bitcoin and crypto is the Coinbase Premium Index, which measures the BTC price difference between Coinbase and Binance. When it shoots up into positive territory, this means that US-based investors are accumulating heavily, and vice versa.
The metric recently plunged to a yearly low, as reported, which coincided with the growing ETF outflows after the FOMC meeting. Now, though, CryptoQuant data shows that it has returned to neutral territory almost immediately after posting that low. This shows that “sentiment by the US and institutional investors is back.”
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