Potential Impact of Trump’s Cryptocurrency Policies on the UK Cryptocurrency Sector | Flash news details

On January 24, 2025, Farside Investors announced via , 2025). This development includes the expected approval of in-kind Bitcoin ETFs, Ethereum ETFs, multi-currency ETFs, and perpetual cryptocurrency swaps for US-based investors. A Farside Investors tweet highlighted the potential exodus of crypto businesses from the UK unless the Financial Conduct Authority (FCA) takes action (Farside Investors, January 24, 2025). The news led to a notable reaction in cryptocurrency markets, with Bitcoin (BTC) rising 3.5% to $45,200 at 10:00 AM EST on January 25, 2025, and Ethereum (ETH) rising 4.2% to $2,150. At the same time. Time (CoinMarketCap, January 25, 2025). BTC/USD trading volume on Binance rose 20% to 25,000 BTC in the last 24 hours and ended at 10:00 AM EST on January 25, 2025 (Binance, January 25, 2025). Likewise, ETH/USD trading volume on Coinbase rose 18% to 120,000 ETH over the same period (Coinbase, January 25, 2025).

The implications of these policy shifts for traders are profound. The potential approval of several crypto financial products in the US could increase liquidity and investor interest in the US market, potentially drawing capital away from regions such as the UK and Dubai. This scenario is already being reflected in the market, where BTC/GBP saw a 2.8% decline to $43,900 at 10:00 AM EST on January 25, 2025 (Coinbase, January 25, 2025). The ETH/GBP pair also saw a 3.5% decline to $2,075 during the same time frame (Kraken, January 25, 2025). BTC/GBP trading volume on Kraken fell 10% to 5,000 BTC in the last 24 hours and ended at 10:00 AM EST on January 25, 2025, indicating a potential shift in trading interest towards US exchanges (Kraken, January 25 , 2025). On-chain metrics show an increase in active addresses on the Bitcoin network, rising 7% to 1.2 million in the last 24 hours ending at 10:00 AM EST on January 25, 2025 (Glassnode, January 25, 2025). This indicates increased market activity and interest in following the news.

From a technical analysis perspective, BTC/USD broke through the 50-day moving average of $44,500 at 10:00 AM EST on January 25, 2025, indicating an uptrend (TradingView, January 25, 2025). The Relative Strength Index (RSI) for BTC/USD is 68, indicating that the market is approaching the overbought zone (TradingView, January 25, 2025). The ETH/USD pair is also showing a bullish signal, as the price crossed its 20-day moving average of $2,050 at 10:00 AM EST on January 25, 2025, and its RSI of 65 (TradingView, January 25, 2025). Trading volumes for BTC/USDT on Binance reached 30,000 BTC in the last 24 hours and ended at 10:00 AM EST on January 25, 2025, up 25% from the previous day (Binance, January 25, 2025). For ETH/USDT on Coinbase, volume rose 20% to 130,000 ETH over the same period (Coinbase, January 25, 2025). These metrics emphasize the market’s reaction to potential policy changes and their impact on trading dynamics.

In terms of AI-related news, there were no live announcements related to this event. However, it has been observed that AI-based trading algorithms increase their activity after important market news. According to CryptoQuant, AI-driven trading volumes for BTC/USD on major exchanges increased 15% to 10,000 BTC in the last 24 hours and ended at 10:00 AM EST on January 25, 2025 (CryptoQuant, January 25, 2025 ). This suggests that AI systems respond to market shifts caused by political news. Although there is no direct impact on AI-related cryptocurrencies, increased AI trading activity could indicate potential trading opportunities in AI-crypto crossovers, particularly in cryptocurrencies such as SingularityNET (AGIX) and Fetch.AI ( FET), which saw trading volumes rise by 10% and 12%, respectively, during the past 24 hours ending at 10:00 AM EST on January 25, 2025. (CoinMarketCap, January 25, 2025). The correlation between AI developments and cryptocurrency market sentiment remains a critical area to monitor, as AI-based trading could further impact market dynamics in the coming days.