Bitcoin Recovers After DeepSeek AI Panic and Fed Decision
Following DeepSeek’s development and public release of Janus-Pro-7B on Sunday Bitcoin regained ground above $105,000. The crypto market suffered $860 million worth of liquidation following the announcement which simultaneously caused NVIDIA to experience a $600 billion market capitalization reduction on Monday. The panic was considered excessive by analysts who explained that DeepSeek's technology demonstrates inexpensive AI creation methods while avoiding disruption of main tech corporations.
The crypto markets achieved stability during midweek despite the Federal Reserve choosing to keep its benchmark interest rate between 4.25% and 4.5% because of ongoing inflationary pressures. Banking institutions would receive permission to serve crypto clients according to Fed Chair Jerome Powell following a brief Bitcoin dip during his announcement.
Senate Confirms Scott Bessent as Pro-Crypto Treasury Secretary
Scott Bessent received Senate confirmation to become the United States Treasury secretary after Janet Yellen stepped down from the position. As the new Treasury Secretary Bessent intends to establish a federal crypto regulatory framework through his leadership of the Presidential Working Group on Digital Asset Markets because of his established pro-crypto position.
The crypto economy according to Bessent will continue to exist while he remains against implementing a central bank digital currency (CBDC) in the United States. Ripple CEO Brad Garlinghouse views Bessent as a leader who can strike a regulatory balance for crypto innovation.
Jupiter’s Growth Sparks Debate on Solana’s Future
Through its litterbox reserve, Jupiter implements a 50% protocol fee buyback plan as the leading decentralized exchange (DEX) aggregator operating on Solana. The Catstanbul 2025 event showcased the browser-based asset trading platform Jupiter’s acquisition of Moonshot and SonarWatch along with the associated JUP token price increase.
Journalists divide opinions about Jupiter's decision to raise fees because it promotes Solana expansion but others suggest that this practice might result in reduced innovation along with excessive system control.
SEC Wins Partial Ruling Against Kraken in Ongoing Crypto Lawsuit
A California judge awarded the SEC part of its desired outcome during its legal battle against the crypto exchange Kraken. The "major questions doctrine" defense that Kraken presented failed to stand in California court as a judge confirmed the SEC possesses regulatory power over cryptocurrencies even without specific government authorization.
The court decided to let Kraken proceed with its "fair notice" defense although the SEC had not sufficiently notified of potential securities violations. Kraken faces legal charges from 2023 for running an unregistered securities exchange from 2018 until now.
Cboe BZX Resubmits Spot Solana ETF Applications Amid Regulatory Optimism
Cboe BZX Exchange submitted four new applications for Solana ETFs to the SEC as previous applications received denial from the regulator including proposals from Canary Solana Trust, Bitwise Solana ETF, and 21Shares Core Solana ETF. The resubmissions show expectations that the forthcoming pro-crypto policies of the Trump administration will create more beneficial regulatory environments in 2025.
The SEC has approved Bitcoin and Ethereum ETFs during 2024 but has not determined a regulatory framework for Solana. The approval of spot Solana ETFs would enhance SOL price potential as well as bolster the overall Solana network.
