Federal Reserve Governor Jefferson: No Need to Hurry to Further Cut Interest Rates, Strong Economy Makes Caution Appropriate

On January 1st, the Flow Foundation released a statement addressing coordinated efforts by exchanges following the December 27th exploit incident. Since the breach, the Foundation and its forensic partners have collaborated with global exchanges to protect users and resume operations—with Kraken, Coinbase, and Upbit as key partners, and Kraken already having restarted services. The Flow Foundation expressed concern over how a specific exchange handled the incident. Within hours of the exploit, a single account deposited 150 million FLOW tokens (roughly 10% of the total supply) into the exchange, converted a large portion to BTC, and withdrew over $5 million in funds during the short window before the network was paused. This transaction pattern reveals a flaw in the exchange’s AML/KYC processes, shifting financial risk to users who unknowingly bought the fraudulent tokens. Forensic analysts have identified significant deviations from normal market behavior in FLOW trading pairs on th

On January 1, U.S. Senator Cynthia Lummis said in a post that the Responsible Innovation in Financial Services Act of 2026 permits large banks to offer digital asset custody, staking, and payment services under appropriate regulatory oversight. Lummis noted that digital assets are an integral part of the financial system, and integrating them into the regulated banking framework can unlock growth potential while safeguarding consumers.

Jan 1st — Per HTX market data, Ethereum closed 2025 at $2,984, marking a 12.6% full-year decline. The token opened the year at $3,414 and followed an inverted "N" trajectory: a yearly low of $1,385 in April, a gradual recovery, and a peak of $4,955 on August 25.

Data from HTX on January 1 shows Bitcoin posted a 7.84% annual drop in 2025, closing the year at $87,950. The cryptocurrency opened 2025 at $95,432. Key 2025 developments: - Jan 21: Donald Trump’s U.S. presidential inauguration; Bitcoin briefly topped $109,000 before pulling back. - Mar 7: Trump signed an executive order to establish a strategic Bitcoin reserve. - Apr 7: Trump signed an “Equal Tariffs” executive order, sending Bitcoin briefly below $75,000. Subsequently, Bitcoin rallied on three catalysts: rising institutional demand, expectations of further Federal Reserve (Fed) rate cuts, and the U.S. government shutdown. It hit a 2025 high of $126,181 on Oct 7—marking a historic peak. However, an Oct 11 flash crash triggered over $20 billion in liquidations, drying up liquidity and sending Bitcoin tumbling to ~$80,000 before stabilizing.

**December 31 (FXStreet) — A Citigroup economist warned on Monday that the recent drop in initial jobless claims around the holiday season should be viewed with caution. During the Christmas week, initial jobless claims fell to 199,000 from 215,000, missing forecasters’ consensus expectation of 220,000. Citigroup noted: “Seasonal adjustment challenges around this year’s holiday weeks appear far more acute than usual, and more reliable signals from initial claims may not emerge until late January.” While layoffs remain at historically low levels, the bank expects December non-farm payrolls to rise by 75,000—data for which is set to be released next week. Citigroup also projected: “We still anticipate the unemployment rate will climb to 4.7%, partly due to a pickup in the labor force participation rate.”**

On December 31, Bloomberg Intelligence Senior Commodity Strategist Mike McGlone said cryptocurrency’s performance following a risk-off adjustment has lagged global equities—potentially signaling a rapidly advancing risk-asset cycle is nearing its end. “From late 2017 through December 30, the Bloomberg Galaxy Crypto Index (BGCI) has risen roughly 90%, matching the total market capitalization gain of global stocks,” he noted. “Meanwhile, its annualized volatility is about 7x higher—meaning crypto assets haven’t delivered commensurate excess returns despite carrying far greater risk.”