Market Crash, Bitcoin Reserves and More!

The crypto market had another eventful week with important predictions and warnings for 2025. Arthur Hayes outlined the market trajectory for the first quarter of 2025, while Robert Kiyosaki warned of an impending Bitcoin crash.

This week in crypto, Shiba Inu also announced the launch of a new token. Additionally, 13 US states have decided to move forward with Bitcoin reserve legislation. Here’s a roundup of the week’s biggest stories.

Arthur Hayes: Crypto Market Will Peak in March, Then Crash!

Arthur Hayes, former CEO of BitMEX, predicts cryptocurrency market peak in mid-March 2025followed by severe correction. In a essayHayes attempted to answer whether or not the bullish momentum surrounding Trump’s election victory will continue.

Hayes noted that the new president may be unable to keep all of his campaign promises, which could lead to a decline in market confidence. However, the increase in dollar liquidity could offset the disappointment with Trump’s policies in the short term.

Hayes explained that since Bitcoin bottomed in the third quarter of 2022, its price has largely followed the decline in the Federal Reserve’s Reverse Repurchase Facility (RRP) and the U.S. Treasury General Account (TGA). The Fed’s quantitative tightening policy will remove $180 billion of liquidity by the end of the first quarter of 2025. Nevertheless, the recent RRP rate adjustment is expected to result in a liquidity injection of $237 billion, generating positive net liquidity of 57 billion dollars.

Liquidity is expected to fuel the crypto market. Arthur Hayes is optimistic about the near-term outlook for the crypto market. However, he recommends caution at the end of the first trimester.

“Sell at the end of the first quarter, then relax,” Hayes advised.

Robert Kiyosaki warns of imminent Bitcoin crash

Robert Kiyosaki, author of the bestselling book Rich dad, poor dadwarned that the The biggest stock market crash in history is near.

Kiyosaki reaffirmed his long-standing predictions, attributing the coming crash to decisions made during the 2008 financial crisis. He argued that leaders, including former Federal Reserve Chairman Ben Bernanke, prioritized bailing out banks rather than supporting ordinary citizens.

Looking ahead to 2025, hWe predicted that expensive assets like houses, gold, silver and Bitcoin would soon go on sale. He also pointed out that the world was on the brink of war, which, in his opinion, only made the situation worse.

“Please be smart. Many expensive assets will be put up for sale. I will buy more real assets with fake US dollars,” Kiyosaki wrote on Twitter.

Nevertheless, over the past week, the price of Bitcoin has fallen from a high of $102,000 to a low of $92,000. At press time, BTC was trading at $94,932 after a slight recovery.

Shiba Inu will launch TREAT in January

The second largest coin, Shiba Inu, launches a new token in its ecosystem. In a January 2 announcement, Team Shiba Inu announced that TREAT would launch in January.

TREAT is about governance and rewards for the broader ecosystem. Its developers seek to transform Shiba Inu from a coin into an inventive blockchain network.

However, TREAT will not be available to American audiences. Without providing details, the announcement adds a disclaimer that the new meme coin is not intended for the United States. This exclusion could be linked to possible regulatory or licensing issues with US exchanges.

Nonetheless, Shiba Inu prices have been on a downward trend over the past week. TREAT Token Launch Expected to Boost SHIB price.

13 US States Push for Bitcoin Reserves

According to Dennis Porter, at least 13 US statesout of a total of 50, are working on creating Bitcoin reserves. Porter is the CEO and co-founder of Satoshi Action Fund (SAC).

“I can confirm that at least 13 states are working on “Strategic Bitcoin Reserve” legislation. January will be a banner month for Bitcoin politics,” Porter tweeted on January 3.

Porter also added that a “tidal wave of Bitcoin politics” would arrive in 2025.

As Bitcoin emerges as a serious competitor to traditional assets like gold, global debate is intensifying around BTC’s role as a national reserve asset. It was President-elect Donald Trump who initiated discussions about government Bitcoin reserves.

Several US lawmakers have already approved national Bitcoin reserves. Lawmakers in Texas, Ohio, Pennsylvania, and more have pushed for BTC reserve legislation.

Banks Must Suspend Bitcoin Services, Coinbase Reveals

Coinbase revealed that the Federal Deposit Insurance Corporation (FDIC) has asked banks to suspend Bitcoin services until new guidelines are established. This directive has raised concerns about the future of cryptocurrency services offered through traditional banking channels.

Coinbase General Counsel Paul Grewal revealed that the FDIC has sent additional letters urging banks to reduce their crypto-related operations. According to Grewal, these letters, which cover everything from Bitcoin transactions to more advanced crypto services, are part of a broader effort to curb the growth of the crypto industry.

Ripple Chief Legal Officer Stuart Alderoty also pointed out that these FDIC guidelines appear designed to deter banks from engaging in crypto-related activities.

“Note that the FDIC magically found TWO additional pause letters in this search after previously stating that it had complied with a prior court order. It’s hard to believe in their good faith when their sweater frays even more every time you pull the thread. The new Congress should begin hearings on all of this without delay,” Grewal said.

The move comes amid expectations of a favorable regulatory environment in the United States following Trump’s election victory.