CryptoCurrency
Bank of England to cut interest rate six times by next year as UK economy slumps, Goldman Sachs says
Markets are greatly underestimating the likelihood that the Bank of England will need to speed up the pace of interest rate cuts, Goldman Sachs has argued.
They forecast that UK interest rates could drop to 3.25 per cent by the second quarter of 2026.
The Bank of England could cut interest rates six times by next year due to sluggish economic growth, according to the US investment bank.
Goldman analysts believe that the markets are underestimating the number of rate cuts, stating: “We believe that markets are pricing too few rate cuts.
“While it is possible that the Bank of England will slow the pace of cuts if underlying inflation fails to make progress, we believe that a step-up to a sequential pace of cuts in response to weaker demand is actually more likely.”
The Bank of England rate cuts could happen more quickly, Goldman sachs says
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While markets expect two interest rate cuts this year, most economists think the Bank of England will reduce rates every quarter in 2025, with a 0.25 per cent reduction likely at the next meeting on February 6.
Rates were cut twice last year, from 5.25 per cent to 4.75 per cent.
Goldman Sachs points to weaker-than-expected economic growth as a key factor that will likely prompt the Bank of England to loosen policy more quickly.
November’s GDP growth was just 0.1 per cent, below expectations, and services inflation dropped to 4.4 per cent in December.
They also noted that private sector surveys suggest the labour market has weakened following the October Budget, which raised taxes on employers. Unemployment has increased to 4.4 per cent, and job vacancies have fallen to their lowest level since mid-2021.
The US investment bank acknowledged that price pressures were “uncomfortably high”, but said there were “several indications” that the medium-term inflation outlook was “softening”.
Most analysts think that the economy was essentially flat at the end of last year, while fears about inflation have started to rise up the agenda again too.
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Economists think the headline rate of inflation could surpass three per cent by the spring on the back of higher energy prices, a weaker pound and the impact of the Budget.
Analysts led by Sven Jari Stehn said: “Growth has weakened markedly…household real disposable income growth is likely to slow…and rising trade tensions are likely to weigh on activity.”
They expect the UK economy to grow 0.9 per cent in 2025, notably behind the consensus estimate of 1.3 per cent.
Goldman analysts added: “While some of this weakness is likely related to expectations for a negative employment effect from the upcoming national insurance increase, we now see notable signs of underlying cooling, which should weaken pay pressures over time.
“We are sceptical that Bank Rate can stay above four per cent persistently – as priced by financial markets – without materially weakening the economy and thus inflation.”
Three members of the nine-strong Monetary Policy Committee (MPC) voted to cut rates in December as the Bank said the economy was stagnant in the fourth quarter.
Alan Taylor, a new member of the Bank’s monetary policy committee, indicated last week that he would be open to cutting interest rates five or six times saying he would be comfortable with this approach “to get interest rates back toward normal to sustain a soft landing.”
The partnership aims to expand compute services on Nexus Network via io.net’s decentralized GPU network, as the project works on developing the world’s first decentralized supercomputer.
Decentralized physical infrastructure network (DePIN) io.net announced its newest partner, Nexus Network, a project aiming to provide supercomputer resources to everyone, this week. The strategic collaboration will see Nexus leverage io.net’s GPU clusters to expand its network’s compute power as it builds its ‘Verifiable Internet’.
Additionally, the partnership will strengthen the Nexus zero-knowledge Virtual Machine (zkVM) by integrating io.net’s Infrastructure-as-a-Service (IaaS) platform, furthering Nexus’s mission to make zero-knowledge proof services accessible to all.
Nexus Network is a community of developers that are designing the Verifiable Internet, where trustless computation and verification are integral to digital interactions. The mission of the project is to build a global, distributed supercomputer that is accessible to everyone. It leverages zkVM technology which enables developers to create scalable and secure applications, redefining how users interact with blockchain ecosystems.
io.net, or the Internet of GPUs, is a DePIN that deploys and manages on-demand, decentralized GPU clusters from globally distributed sources. The protocol includes millions of GPUs that are connected to the IO Network, allowing users to tap into the compute power for various high-0compute needs such as AI, machine learning, cloud gaming etc. io.net democratizes access to GPU compute capacity while reducing costs, expediting lead times, and expanding choice for engineers and businesses.
Expanding Compute Power on Nexus Network
As stated, the partnership will leverage io.net’s robust decentralized GPU infrastructure to expand the compute power available for proof generation within the Nexus zkVM. Via the geo-distributed GPUs, Nexus will benefit from an extended network of validators, bridges, relayers, and oracles across web3 ecosystems.
The added compute power from io.net will enable Nexus Network to enhance zk-proof technologies and make these services accessible to everyone. From accessibility to developers across the world to enterprises and businesses, users on Nexus will enjoy faster and more efficient zero-knowledge-proof generation. This is expected to facilitate blockchain development of scalable, privacy-focused and low-latency decentralized applications (DApps).
Speaking on the partnership, Alex Fowler, Chief Strategy Officer at Nexus, stated:
“Our partnership with io.net marks a pivotal step forward in advancing the capabilities of Nexus network, By combining our zero-knowledge proof technology with io.net’s decentralized compute infrastructure, we’re creating a more scalable and accessible proving solution that will benefit developers and users globally.”
A New Interconnected, Privacy Focused Supercomputer
The partnership aims to help both io.net and Nexus flourish as well as expand the capabilities of their users. Together, the two companies aim to improve the scalability, reliability, and accessibility of zero-knowledge proving technology. In addition, the two companies will share expertise on how to strengthen the computational capabilities of the Nexus network by optimizing access to GPU clusters, supporting its goal of creating the world’s most powerful computer.
To boost privacy, in addition to the computing power on Nexus, Tausif Ahmed, Chief Business Development Officer at io.net, echoed the statements of Fowler saying:
“Collaborating with Nexus reinforces io.net’s commitment to powering innovative web3 technologies. Together, we’re enabling a decentralized and privacy-first future, where zero-knowledge proofs can thrive at scale.”
The collaboration is also expected to scale the decentralized network of GPUs on the IO Network, as new users join from Nexus. It will also scale the computational resources dedicated to proof generation within the Nexus zkVM, enhancing performance and reducing lead times for developers and enterprises. Moreover, io.net’s geo-distributed GPU clusters will provide a decentralized, high-performance compute layer, boosting the overall resilience and scalability of the Nexus network.
The biggest winner, however, is the wider Web 3 ecosystem. Through such partnerships, the Web 3 industry builds a foundation for a more interconnected, verifiable, and scalable ecosystem. It bridges the gap between innovative infrastructure and practical utility for web3 developers and enterprises.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Clearpool co-founder and CEO Jakob Kronbichler offered his insights on the shift toward private credit tokenization and DeFi yield growth.
CryptoCurrency
HMRC set to hire 5,000 new inspectors in tax clampdown on ‘working people on ordinary incomes’
HM Revenue and Customs (HMRC) is set to hire 5,000 additional tax inspectors as part of a major clampdown on small businesses and their owners.
The expansion, revealed in the HMRC Customer Service & Accounts report published yesterday, aims to secure £6.5billion in additional revenue by 2029/30.
Price Bailey, a Top 30 accountancy firm, notes that this recruitment drive will result in one additional tax inspector for every 1,000 small businesses across the UK.
The move represents a significant shift in HMRC’s enforcement strategy, targeting the country’s 5.3 million small businesses.
This intensified scrutiny comes as small businesses face increases to employers’ National Insurance and the National Living Wage. The scale of HMRC’s tax enforcement operation reflects growing concerns about small business compliance.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
HMRC is hiring thousands of new officers to target tax dodgers
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According to HMRC’s June tax gap report, small businesses now account for 60 per cent of the overall tax gap, up from 44 per cent in 2018-19.
The current tax gap attributed to small businesses stands at £24.1billion. Price Bailey’s data shows HMRC’s customer compliance staff has increased by 26 per cent over the past three years, rising from 25,442 in 2021/22 to 32,017 in 2023/24.
As the firm reports, HMRC is increasingly conducting parallel investigations, examining both businesses and their directors simultaneously.
Tax inspectors are now more likely to review multiple years of accounts in a single investigation. This enhanced scrutiny comes despite HMRC’s reported struggles with tackling serious tax evasion, including electronic sales suppression in retail and directors avoiding tax debts through company wind-ups.
HMRC is looking to see where business owners are failing to pay tax
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Andrew Park, an investigations partner at Price Bailey, criticised the Government’s previous focus on offshore tax compliance.
“It was clear to anyone looking closely at the numbers that the Government’s plan to slash the tax gap by targeting wealthy individuals with offshore assets was fanciful. It was simply a politically expedient thing to say,” he states.
Park warns that HMRC will need to target ordinary business owners to achieve its goals.
“To make a serious dent in the tax gap HMRC will need to go after a vast swathe of working people on ordinary incomes,” he explains.
The shift comes as HMRC faces pressure to increase revenue amid rising Government borrowing costs.
“With Government borrowing costs rising and the Chancellor desperate to avoid more tax rises, there is growing pressure on HMRC to save the day by bringing in billions more in revenue,” Park adds.
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Britons could be targeted in HMRC’s efforts to clampdown on tax evasion
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According to Price Bailey, HMRC will be placing particular scrutiny on the costs businesses are trying to claim back as an expense from the tax authority.
“Business expenses account for a large portion of the small business tax gap,” said Park.
He reveals some striking examples of questionable expense claims: “I have seen owner-managers claiming tax relief for expensive suits, leisure travel, family birthday parties and in one case even a hovercraft.”
Small business owners are being advised to consider protection against the growing risk of investigations.
The native token of the Animecoin community is set to make its South Korean debut via Upbit on Jan. 23 at 22:00 KST after listing on Binance.
According to a recent notice, Upbit will launch the token inspired by the Japanese pop-culture phenomenon starting from Jan. 23 at 22:00 KST. The South Korean crypto exchange will provide trading support for ANIME paired with the Korean Won, Bitcoin and Tether. The token will be available on the Arbitrum (ARB) network.
Traders can start depositing and withdrawing ANIME at 22:00 KST. Upbit will announce the beginning of transaction support at a later time. However, due to the token’s newly launched status, the crypto exchange warned traders that the token may not have enough liquidity to guarantee a stable trading experience.
“Upbit will provide additional information on the trading support time through this notice 1 hour before the trading support time after sufficient liquidity is secured within the exchange,” wrote Upbit in the notice.
Buy orders for ANIME will be restricted to around 5 minutes after trading starts, while sell orders are restricted to for one hour. The base price for the Animecoin token will be announced one hour before trading officially begins.
Animecoin is also listed on other major crypto exchanges, including Binance, Bybit and OKX from Jan. 23.
According to the official description, ANIME is a “culture coin of the anime industry” meant to solve problems plaguing the animation industry such as fragmented consumer experience, limited fan participation, and outdated monetization models using a community-owned creative web3 network.
ANIME will be used as a gas and governance token for Animechain, the community’s web3 network scheduled to go live in Q1 of 2025. The project vows to introduce a series of original and third-party anime content, including games, merchandise, and NFTs.
The Animecoin foundation has prepared a total token supply of 10 billion ANIME tokens and an initial circulating supply of 7.69 billion ANIME. Around 50.5% of the total token supply will be allocated to the community and more than 20% will go to the team and company.
Ripple’s price has been rallying aggressively since November last year as it managed to match its 2018 all-time high.
However, it failed to break above it and is currently struggling to continue higher.
By Edris Derakhshi (TradingRage)
The USDT Paired Chart
On the USDT pair, the third-largest cryptocurrency has regained bullish momentum since the beginning of 2025, after a month of consolidation in December.
Currently, the market is trying to maintain above the $3 resistance level. If successful, a record-breaking rally could begin for XRP. However, a drop back toward the $2.5 mark and even the $2 support level would be likely in case of a bearish rejection.
The BTC Paired Chart
The XRP/BTC chart also demonstrates an interesting price action, as a large ascending channel has been forming in the past couple of months.
Yet, with the price breaking above the 2800 SAT level, the market structure is in favor of a bullish continuation which could see the pattern getting broken to the upside. However, a retest of the 2800 SAT level is highly probable before further upward movement.
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Cryptocurrency charts by TradingView.
XRP is currently navigating a pivotal phase, trading within a well-defined consolidation range of $2.9 to $3.4. This narrow band reflects a balanced struggle between bullish optimism and bearish caution as neither side has yet mustered the strength to trigger a decisive price movement.
Historically, such periods of consolidation are often precursors to significant market shifts, making this a critical moment for XRP enthusiasts and traders alike. A breakout above the upper boundary at $3.4 will probably act as a bullish catalyst, indicating renewed momentum and attracting fresh buying interest.
Such a move may pave the way for XRP to target higher levels, fueling market confidence. However, a breakdown below the $2.9 support could spell trouble, inviting stronger selling pressure. With technical indicators and trading volumes offering mixed signals, all eyes are now on XRP’s price action to see whether it will deliver a breakout or succumb to a bearish reversal.
A Tug-Of-War Between XRP Bulls And Bears
A consolidation phase has emerged within the $2.9 to $3.4 range, showcasing a battle between bullish and bearish forces. The $2.9 level has proven to be a robust support, preventing further declines, while the $3.4 resistance acts as a key barrier to upward momentum. This tug-of-war highlights the indecision in the market, with traders closely watching for a breakout or breakdown to gauge the next significant price direction.
However, technical indicators are offering valuable insights into XRP’s consolidation phase such as the Relative Strength Index (RSI) suggesting a potential bearish breakout below the critical $2.9 support level. The RSI, currently dropping below the 50% threshold, reflects a weakening buying momentum.
If the RSI continues to dip toward oversold territory, it might indicate that bears might be gaining the upper hand, increasing the likelihood of a price drop below $2.9. A breakdown at this support level may trigger negative momentum, pushing the altcoin into a deeper retracement phase.
While consolidation phases often precede significant market moves, the RSI’s negative alignment warns traders to remain cautious as a failure to hold $2.9 could attract more sellers. Monitoring RSI movements alongside other technical indicators will be crucial in anticipating XRP’s next move amidst this uncertain phase.
The Importance Of Defending The $2.9 Support Level
Recent price action shows that the $2.9 support level is a critical threshold for XRP as bearish pressure looms. A decisive break below this level would result in increased selling pressure, driving the price down toward $1.9. This makes defending $2.9 a priority for the bulls since maintaining this level could provide the stability needed for a rebound.
Failure to hold $2.9 might also shake trader confidence, reinforcing pessimistic sentiment and extending XRP’s consolidation phase. It is advisable to monitor price action and volume near this key level as it might determine whether XRP remains resilient or submits to more downside risks.
Liquid restaking protocol Puffer Finance has announced details of its airdrop campaign, which will see users accrue the newly-launched CARROT token that can be converted to PUFFER at the conclusion of season 2 later this year.
Users will accumulate CARROT through activities like staking, governance voting and liquidity provision.
The protocol currently has $264 million in total value locked (TVL), and the PUFFER token has a $60 million market cap.
“Through democratic voting, Puffer community members can support projects, liquidity providers, and content creators that add genuine value to the Puffer ecosystem,” said Amir Forouzani, co-founder of Puffer Labs.
CryptoCurrency
Ethereum Holders Pivot To FXGuys ($FXG) And New TRUMP Coin Amid Growing Market Hype On Both Altcoins
Investors are faced with potentially profitable choices amid growing market hype about Ethereum (ETH), the new TRUMP coin, and the emerging star FXGuys ($FXG). However, $FXG is poised to surpass these other altcoins in terms of exponential growth.
While ETH’s consistent climb continues and the TRUMP coin surges amid expectations of Donald Trump’s inauguration, the $FXG presale is yielding huge gains for early investors. Read on to discover why $FXG could simply be the altcoin you should not overlook in this bull run.
FXGuys: The Prop Firm is Revolutionizing Forex Trading
By combining the best features of decentralized finance (DeFi) with Forex trading, FXGuys is transforming the prop firm sector. For top traders who pass the challenge phase on the FX Guys platform, this prop firm gives these talented traders up to $500,000 in trading capital.
Apart from an 80/20 profit share in their favor, these traders have access to a custom-built platform with advanced social trading tools and modern analytics. Moreover, the special FXGuys Trade2Earn mechanism pays $FXG tokens for every trade carried out—win or lose.
Along with empowering traders, this configuration encourages long-term involvement and success inside the FXGuys ecosystem. Through its staking rewards program, which provides an astounding 20% APY from broker trading volume, FXGuys boosts investors’ wealth.
Together with the rising investor interest in the $FXG token, these unique FXGuys features are helping it edge towards being the top prop firm of the year.
For investors looking for significant rewards in the fast-expanding ecosystem that combines DeFi with Forex trading, the $FXG token stays undervalued while the presale runs.
Ethereum Shows Resilience: Will the Market Hype Sustain?
With a 3% token price rise over the previous week against the market swings, Ethereum has shown resilience. Although the ETH price has shown some short-term fluctuation between $3,550 and $2,950, overall, its long-term future seems bright.
Though Ethereum suffered a small drop of less than 1% over the past month, the sentiment toward the ETH price is still rather positive. Being one of the top altcoins to hold amid the ongoing market hype, analysts think Ethereum may be en route to revisiting its ATH of $4,891.
Technical indicators, including the MACD and Moving Averages, exhibit buy signals, therefore boosting hope for ETH’s future in the coming months. But while Ethereum is still steadily popular, $FXG is rapidly catching investor attention with amazing gains.
Rising by about 300% in a few months, $FXG is one of the top altcoins, attracting investors seeking even more benefits amid ongoing market hype. With this fast growth significantly higher than ETH’s 40% rally over the past year, $FXG proves to be a more promising investment option.
TRUMP Coin is Among the Top Altcoins to Hold
Rising by more than 830% in just two days, the TRUMP coin is making news. This is happening as excitement around the inauguration of Donald Trump as the 47th president of the United States on January 20, 2024, increases among crypto enthusiasts.
Given Trump’s well-known backing of cryptocurrencies, many investors are anticipating a positive impact on the market. This enthusiasm is shown on the price chart of the TRUMP coin, which displays a consistent climb with higher highs and higher lows.
Meanwhile, the investor sentiment is now mostly bearish as investors prepare for a possible drop in the value of the TRUMP coin soon. Nonetheless, the TRUMP coin is still considered one of the top altcoins to hold, with a market capitalization of over $12 billion.
Moreover, as Trump’s swearing-in event draws near, additional rallies are expected for the TRUMP coin. Though the TRUMP coin has attracted a lot of interest in the recent market hype, $FXG is quietly becoming a stronger competitor with great potential for even more increase.
$FXG: The Altcoin You Can’t Afford to Miss!
With over $3.4 million raised in its ongoing presale, $FXG is set for an explosive climb in 2025 as the market hype continues to rise. Priced at just $0.04 in Stage 2 of the public presale, $FXG is projected to rise to $0.05 in Stage 3.
The $FXG token price is expected to rise by 150% and reach $0.10 by the end of the public presale. This means you can secure a 150% profit in the next few weeks by joining the presale today.
This is your opportunity to invest early before the token price explodes. As demand for $FXG is skyrocketing and supply is restricted, analysts are expecting a 100x price pump for the $FXG token this year!
To find out more about FXGuys follow the links below:
Presale | Website | Whitepaper | Socials | Audit
Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.
Ledger co-founder David Balland was kidnapped in France and safely released after police intervention. The incident involved a cryptocurrency ransom demand.
Chancellor Rachel Reeves has indicated the Labour Government will be making an U-turn on one of her controversial tax decisions which was announced during the Autumn Budget.
Specifically, Reeves has asserted she is open to relaxing the rules impacting the “non dom community” in a move to stop wealthy taxpayers fleeing the UK while appearing at the World Economic Forum in Davos earlier today.
Under the current HM Revenue and Customs (HMRC) regime, non-doms are able to avoid pauing UK tax on their overseas earnings in exchange for frees for up to 15 years.
Non-domiciled individuals are usually wealthy people who live in the country but are not legally domiciled, providing them with certain tax advantages.
During her fiscal statement in October 2024, the Chancellor announced plans to replace current rules with a shorter residence-based regime from April 2025.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
The Chancellor is making a shocking U-turn on one of her more controversial tax proposals
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During an interview with The Wall Street Journal’s editor-in-chief Emma Tucker, the Chancellor said: “We have been listening to the concerns that have been raised by the non-dom community.”
Under the proposed changes, the tax rules relating to the temporary reparation facility would be altered. This is a transitional agreement that will last for three years from April.
Previously announced by her predecessor, Conservative Chancellor Jeremy Hunt, this facility will allow non-dom individuals to come in with foreign income into Britain and pay a reduced tax rate.
As part of her Autumn Budget, Rachel Reeves extended the facility from two to three years, however her latest comments suggest the policy change is not set in stone.
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The Chancellor has announced various changes to tax policy during her short tenure
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Luke Littler receives warning about ‘scandal’ after darts star turned 18
Pokemon TCG Pocket’s next expansion launches on January 30th
io.net and Nexus Network Partner to Expand Compute Power and Accessibility
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