Quick Facts

• ETH may outperform BTC in January 2025 due to Ethereum’s upgrade to PoS
• The shift to PoS will reduce energy consumption, making ETH more environmentally friendly and attractive to institutional investors
• IRS introduces new rules for DeFi brokers, requiring them to report certain transactions and events
• Total amount of cryptocurrency held in wallets reaches an all-time high
• Bitcoin (BTC) continues to lead the pack, with its price reaching new highs in recent weeks

Will ETH Outperform BTC in January?

The prediction that ETH may outperform BTC in January 2025 comes from a prominent analyst who believes that the Ethereum network’s upgrade to PoS will have a significant impact on the market. According to the analyst, the shift to proof-of-stake (PoS) will reduce the energy consumption of the Ethereum network, making it more environmentally friendly and attractive to institutional investors. This, in turn, could lead to increased adoption and appreciation of ETH, potentially pushing its price above that of BTC.

While this prediction may seem bold, it’s not without merit. Ethereum’s transition to PoS has been highly anticipated for some time, and the upgrade is expected to bring several benefits to the network, including increased scalability and security. Additionally, the environmental benefits of PoS are undeniable, and it’s possible that this could become a major selling point for institutional investors who have been reluctant to enter the crypto market due to concerns about energy consumption.

That being said, it’s also important to note that the price of a cryptocurrency is ultimately determined by the forces of supply and demand in the open market. If the market doesn’t see the value in ETH’s PoS upgrade, it’s possible that the prediction won’t come to fruition.

IRS Introduces New DeFi Broker Rules

In other news, the Internal Revenue Service (IRS) has announced new rules for DeFi brokers, which are expected to take effect in the coming months. Under the new rules, DeFi brokers will be required to report certain transactions and events to the IRS, including token sales, swaps, and margin trades.

While these new rules may seem onerous, they’re actually a step in the right direction for regulatory clarity in the crypto space. Up until now, DeFi brokers have operated in a sort of regulatory gray area, leaving investors and regulators alike unsure of what rules and guidelines are in place.

The new rules are expected to increase transparency and accountability in the DeFi space, which could help to build trust with investors and attract more institutional capital into the market. However, it’s also important to note that these new rules may have costs associated with them, such as increased fees and administrative burdens for DeFi brokers.

Other News and Trends

In other news, the cryptocurrency market has seen a surge in adoption and use cases in recent weeks, with the total amount of cryptocurrency held in wallets reaching an all-time high. This growth is being driven by a combination of factors, including the increasing acceptance of cryptocurrency as a legitimate form of payment, the growing use of cryptocurrency in institutional investments, and the ongoing development of new use cases for cryptocurrency, such as decentralized finance (DeFi) and non-fungible tokens (NFTs).

In terms of specific cryptocurrencies, Bitcoin (BTC) has continued to lead the pack, with its price reaching new highs in recent weeks. However, other cryptocurrencies, such as Ethereum (ETH) and Litecoin (LTC), are also gaining traction and becoming increasingly popular among investors and users.