• The Lido DAO Governance token has fallen approximately 15% due to a withdrawal proposal that is being met with criticism by Galaxy Digital.
• Bitcoin and other cryptocurrencies finished January with strong momentum, with Bitcoin up 40% during the month.
• The Federal Reserve is set to make a rate decision soon, and Bitcoin is expected to react positively to the news.
The cryptocurrency market had a strong finish to the month of January, with Bitcoin and other top digital assets posting double-digit gains and providing some hope for the year of the rabbit. Bitcoin closed out the month with a 40% gain, while Ethereum also had a very successful month, rising 17%.
However, not all cryptocurrencies had a successful January. The Lido DAO Governance Token, a governance token of the decentralized autonomous organization (DAO), has fallen approximately 15% since its peak last week, in part due to a withdrawal proposal that has been met with criticism by Galaxy Digital. The proposal, which would allow users to withdraw their staked Ether, has yet to be formally presented.
The cryptocurrency markets also have their eyes on the Federal Reserve, which is set to make a rate decision in the coming days. Analysts believe that a positive outcome from the decision could lead to a further increase in the price of Bitcoin, as investors will likely look to the asset as a safe haven.
Overall, the crypto markets had a strong start to the year and the year of the rabbit looks to be even more successful. With the withdrawal proposal from Lido DAO still up in the air and the Federal Reserve announcement looming, it will be interesting to see what the next few months bring for the cryptocurrency market.