Bitfinex alpha | Tether integrates Stablecoin USDT with Bitcoin and Lightning networks to expand global transactions

05 February Bitfinex alpha | Tether integrates Stablecoin USDT with Bitcoin and Lightning networks to expand global transactions

Bitcoin price movements are strongly in response to policies from US President Donald Trump, increasingly reflecting larger macroeconomic events. Over the past week, Bitcoin has fallen below US$100,000 in hopes of reducing volatility and ability to adjust the market in the short term. Bitcoin started in January with a 10% increase in January, but its growth momentum slowed, bringing trading prices to the 15% range over the past 65 days.

In fact, organizers are leading the US stock market to accommodate macro development. The two vertex structures appear on both Bitcoin and S&P 500 charts, but in previous BTC. The latest market catalyst – Trump’s tariff announcement – led to a 0.5% drop in the S&P 500 last Friday, with Bitcoin dropping more dramatically. The 30-day correlation coefficient between Bitcoin and the S&P 500 has increased to 0.8, marking the highest level of five months. This reinforces the view that Bitcoin is traded like a risky asset motivated by macroeconomic factors.

Despite short-term fluctuations, Bitcoin maintains a strong structure over long time frames. Since the US election, BTC has outperformed the traditional market, increasing from $67,000 to over $100,000, but the stocks have only been recovered through flickering methods.

4 hours of BTC/USD chart. (Source: Bitfinex)

In this context, the US economy continues to show durability through strong consumer spending and economic growth, but also faces obstacles from policy uncertainty, disruptions and persistent inflation.
The Federal Reserve was held at 4.25-4.50% last week, indicating that policymakers are not ready to relax financial terms until inflation clearly decreases. Consumer spending rose sharply in December, with actual spending increasing by 0.4%, strengthening more economic growth, but complicating the Fed’s frontline route.

Change the monthly fee for the Personal Consumer Price Index (PCE)

Inflation remains a 2% higher target for central banks, with core PCE inflation oscillation at 2.8% compared to the same period last year. Although pay growth is slow, the labor market is strengthened and potential immigration restrictions push up labor costs and increase inflation risk. Meanwhile, economic growth ended at 2.3%, supported by massive household consumption and increased government spending, but business investment slowed and trade volatility continued.

The market is evaluating its ability to adjust expectations to reduce interest rates and relax in short-term declines. Changes in political and economic variables will result in the coming months as key to determining whether the Fed has switched to easing policy or tightening its stance to combat inflationary pressures.

When the US economy goes through both sustainable and uncertain policy phases, the cryptocurrency industry is experiencing another bending point. Due to inflationary pressures that have caused the Fed to halt action, market-driven parties are closely monitoring how digital assets can apply macroeconomic trends, monetary policy changes, and how more businesses can apply.

MicroStrategy continues to increase its investment in Bitcoin, buying 10.107 BTC for $1.1 billion, bringing its total to 158,400 BTC. The company has also applied for registration with the SEC, ensuring future Bitcoin purchases make capital mobilization more effective. Meanwhile, Metaplanet, a Tokyo listed company, raised $745 million to expand its Bitcoin reserve, and strengthened “Bitcoin and Bitcoin only” in the center of the saddle. This is a signal that the organization’s growing belief that Bitcoin is a measure to prevent currency devaluation and economic instability. At the same time, Tether is expanding the usefulness of Stablecoin USDT worth $140 billion by integrating it into Bitcoin’s Lightning network. This move will significantly improve Bitcoin’s financial infrastructure, making global transactions faster and more efficient. By leveraging Taproot assets, Tether narrows the gap between Stablecoin and Bitcoin security, turning it into a more feasible solvency, not just a place to store value.

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