CoinDesk 20 Index: 3,944.02 +0.64%
Bitcoin (BTC): $95,907.45 +1%
Ether (ETH): $3,722.08 +2.94%
S&P 500: 6,049.88 +0.05%
Gold: $2,645.14 +0.00%
Nikkei 225: 39,276.39 +0.07%

Bitcoin bounced back to nearly $97,000 having tested dip-demand around $93,500 on Tuesday. Prices on Korean exchanges are back in sync with their global counterparts after Tuesday's flash crash caused by the announcement of martial law. Traders await Fed Chairman Powell's speech later today, plus Friday's nonfarm payroll report, hoping for a boost in bitcoin price volatility. With BTC's Coinbase premium returning, the case for renewed bullishness looks promising unless Powell throws cold water on December rate cut expectations. BTC has gained around 1% in the last 24 hours, underperforming the broader market, which is over 2% higher, as measured by the CoinDesk 20 Index.

Two crypto-friendly contenders are being considered to lead the CFTC, according to a report from Fox Business. President-elect Donald Trump, according to Fox, is considering appointing either Perianne Boring or Caroline Pham — who both have pro-crypto credentials — as CFTC chair, which under a Trump administration, could become the go-to digital assets regulator. Recently, Boring has been a staunch defender of the bitcoin mining industry against what she calls "regulatory overreach." She also accused the Securities and Exchange Commission of "backdoor rulemaking" by trying to get a number of cryptocurrencies defined as securities. In 2023, Pham proposed a "time-limited" pilot program to regulate digital asset markets and tokenization, aiming to establish a principles-based framework to address innovation and risk management.

Tron’s TRX catapulted to a record high early Wednesday in a move that liquidated over $21 million in short bets. TRX jumped 76% to over $0.4 with no obvious catalysts, reaching a $34 billion market capitalization. Trading volume exploded from $2 billion on Monday to over $16 billion in the past 24 hours. Value locked on Tron-based protocols zoomed to $14 billion as part of the price surge, DeFiLlama data shows. While no immediate announcements or developments preceded Wednesday’s movements, Tron founder Justin Sun said last week that the ecosystem had invested $30 million in Donald Trump-backed World Liberty Financial, becoming its biggest investor.

South Korean investors have a reputation for investing heavily in altcoins, but that alone does not account for XRP's 30-day price surge of over 400% to $2.60. U.S. investors have been hyperactive through the Nasdaq-listed Coinbase exchange.

The XRP/USD pair on Coinbase has been consistently pricier than Binance's XRP/USDT pair in the past 30 days, with minute-level premiums ranging from 3% to 13%, according to data from analytics firm CryptoQuant.

It's a sign of whales being active on Coinbase, according to CryptoQuant's CEO Ki Young Ju. In the meantime, prices have not seen a significant premium on Korean exchange Upbit.

Narratives surrounding crypto adoption under Donald Trump's forthcoming presidency are likely powering the so-called Coinbase premium.

"The WSJ describes Trump's second term as 'new era for crypto—with fewer government hurdles.' Under a 'litigation peace,' according to the asset's proponents, XRP will become more accessible to major financial institutions using the asset as a 'bridge currency' for foreign exchange," FRNT Financial said in a Tuesday newsletter, explaining the XRP rally and booming activity on U.S. exchanges.

- Omkar Godbole