Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | January 4 - 10, 2025

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Crypto Weekly Recap

Bitcoin:

• Weekly performance: -1.62%
• US Spot Bitcoin ETFs: +$456.55M.
• BTC had a bearish week, soaring to $102K early on but failing to sustain the price.
• Institutional announcements drove early-week gains, with 74 public companies holding BTC by 2024, including 21 with over 1,000 BTC each. Corporate Bitcoin holdings rose 124.8% in 2024, from 262,635 BTC in late 2023 to 590,649 BTC by year's end.
• Global crypto investment products saw $44.2B net inflows in 2024, nearly quadrupling 2021’s $10.5B peak, with $585M added in early 2025 (CoinShares).
• The price fell to $91,600 midweek as enthusiasm faded, recovering slightly later.
• Declines were driven by:
  • Bitcoin’s accumulation trend score dropped to 0.21, signaling distribution. STH-SOPR below 1 showed short-term holders selling at a loss.
  • Fed tightening due to strong US economic data, delaying interest rate cuts until June 18. Officials raised inflation concerns tied to Trump's policies.
  • Approval for the US government to liquidate 69,370 BTC seized from Silk Road, sparking market panic despite no immediate sales.
  • DXY hitting 109.37 (highest since Nov 2022), with 10-year Treasury yields at 4.7% and 30-year yields at 4.93%, raising inflation fears.
  • Arkham reported that BlackRock reduced BTC holdings by $12.4M on Jan. 8, with a total decline of $3M since Jan. 7, now holding $56.4B in net assets.
  • Strong US jobs data showing nonfarm payrolls up 256,000 in Dec., versus 160,000 expected. Unemployment dropped to 4.1%, below forecasts of 4.2%.
• Bull cycle predictions varied, with peaks expected between Q1–Q2 2025. Some anticipated post-inauguration volatility after Jan. 20, while others predicted sustained growth.
• US entities held 65% more BTC than offshore players, per CryptoQuant data.
• The Crypto Fear and Greed Index dropped sharply from "Extreme Greed" to "Neutral."

Ethereum:

• Weekly performance: -4.43%
• US Spot Ether ETFs: -$117.41M.
• ETH mirrored BTC's pattern, dropping from a weekly high of $3,741 to $3,182.
• Comparisons to SOL persisted, with critics noting ETH's weaker performance. However, Fidelity Digital Assets highlighted Ethereum’s strong fundamentals like developer activity, TVL, and stablecoin supply, favoring its long-term outlook over Solana.
• Many altcoins fell back to their multi-week lows amid this week’s market bloodbath, with some even reaching new all-time low levels.
• Still, we don’t see extremely bearish signs: A Bitwise survey revealed 56% of US financial advisors planned to invest in crypto by 2025, driven by client demand and reduced regulatory fears.
• AI dominated discussions this week, with debates over its potential, Binance listings of AI-related tokens, and emerging AI narratives like DEFAI.
• Specifically, Vitalik Buterin suggested pausing AI hardware development for safety. ZachXBT criticized AI agent tokens as 99% scams. Nvidia's Jensen Huang praised AI agents' industrial applications, and Sui’s co-founder predicted "AI-to-AI coordination" as the next big opportunity. Outside crypto, Microsoft and Nvidia also made notable AI advancements.
• Several AI tokens landed on the top gainer leaderboard, reflecting their rising popularity.

Altcoins:

• Ai16z integrated "Hierarchical Task Networks" into Eliza V2.
• Solv Protocol launched Megadrop 2025 with 4.7M token rewards, securing Binance listing for SOLV.
• Solayer Foundation unveiled its native token LAYER and 2025 roadmap.
• Phantom Wallet denied token airdrop rumors.
• Polkadot parachain Phala Network launched an Ethereum layer-2 solution.
• Tether started hiring AI filmmakers to manage brand storytelling.
• A16z Crypto outlined 5 key metrics to watch in 2025.
• Illuvium and Ronin partnered with Virtuals Protocol for AI-powered gaming.
• Gemini settled with the CFTC, paying a $5M fine.
• DePIN revenue grew over 100x in 2024, according to Messari Research.
• A new Solana proposal aimed to address scalability with a "lattice" system.
• The Aave community resisted pegging Ethena’s USDe to Tether's USDT.
• ZKsync’s TVL rose as it allocated 300M tokens for DeFi incentives.
• Hong Kong's HashKey secured a VASP license in Ireland.
• Bybit launched a physical card in Brazil with perks, while halting services in India due to regulations.
• CoinSwitch launched a $70M recovery fund for WazirX hack victims.
• Ripple and Chainlink partnered to boost RLUSD adoption.
• Dusk Network launched its mainnet, focusing on privacy-first RWA tokenization after six years of development.
• Coinbase received a Virtual Currency Business License in New York.
• Bitfinex Derivatives planned a move to El Salvador after securing a crypto license.
• Arbitrum partnered with Lotte for metaverse gaming and proposed a new dispute resolution system.
• GSR Markets UK received FCA approval for crypto asset trading.
• Wintermute became the first to offer OTC trading for BUIDL tokens.
• Finnish police seized $2.6M in watches from Hex founder Richard Heart.
• Sonic SVM launched a multimillion-dollar fund for Web3 gaming and AI agents.
• StarkWare unveiled appchains on Starknet with a developer toolkit.
• Revolut partnered with Pyth Network to supply market data.
• Do Kwon’s trial was set for Jan 2026 as investigations continued.
• Exodus Wallet goes public on the NYSE.
• Eliza Labs partnered with ARC and IoTeX.
• Mastercard launched crypto solutions for traders in UAE and Kazakhstan.
• Coinbase Wallet added bank transfer features to enhance USDC accessibility.
• Fetch.ai launched a $10M accelerator for AI startups.
• Mantra and Damac signed a $1B deal to tokenize Middle Eastern assets.
• Aptos integrated Chainlink for verifiable data.
• WazirX charted a recovery path after a $235M cyberattack.
• Philippine banks collaborated to launch PHPX stablecoin on Hedera.
• Berachain’s vault hit $1.1B, showcasing strong community support.
• Sam Altman's Worldcoin project surpassed 10M human verifications.
• Movement Labs neared completion of a $100M Series B funding round.
• AI-driven crypto research platform SoSoValue secured $15M in Series A funding at a $200M valuation.
• O.XYZ raised $130M to develop decentralized AI-managed organizations.
• Crypto donations bolster LA wildfire relief efforts.

Corporate Bitcoin Holdings Continue Rising in 2025

The growing institutional interest in Bitcoin is shaping the cryptocurrency landscape as companies and nations enhance their holdings and strategies. In January 2025, MicroStrategy acquired 1,070 BTC, raising its total to 447,470 BTC, valued at over $44 billion. Metaplanet aims for 10,000 BTC, currently holding 1,762 BTC. MARA Holdings loaned 7,377 BTC in a yield strategy, while KULR purchased $21 million of BTC, totaling 430.61 BTC. El Salvador expanded its holdings to 6,022 BTC despite IMF pressure. Thumzup Media invested $1 million in BTC and plans to allocate 90% of liquid assets to crypto. CleanSpark surpassed 10,000 BTC, becoming the fourth-largest corporate holder, emphasizing the rising trend of corporate Bitcoin holdings.

Global Crypto Regulations Witness Key Developments

In early January 2025, notable trends in global cryptocurrency regulations emerged. Jeju Island, South Korea, plans to launch NFT tourism cards to boost domestic tourism. Four firms obtained MiCA licenses in the Netherlands, highlighting EU crypto regulation developments. Chile considers a Strategic Bitcoin Reserve, while the UAE attracts crypto ventures fleeing EU restrictions. Thailand pilots Bitcoin payments in Phuket, and Oklahoma proposes the Bitcoin Freedom Act to allow Bitcoin for wages. Other advancements include Kenya's plan to legalize cryptocurrencies and Germany's strategies for Bitcoin adoption, reflecting a global shift towards integrating digital assets into economic frameworks.

New Bitcoin ETF Applications and Mining Expansions

In early 2025, several notable developments emerged in the cryptocurrency landscape. Strive Asset Management submitted a Bitcoin Bond ETF application to attract institutional investors, while Calamos launched the CBOJ ETF, offering 100% downside protection against Bitcoin's volatility. Phoenix Group expanded its operations with a new 50 MW Bitcoin mining facility in North Dakota, enhancing U.S. mining capacity. Nasdaq ISE proposed a tenfold increase in Bitcoin ETF options limits to boost liquidity. Additionally, Standard Chartered initiated cryptocurrency custody services in Europe, following its Luxembourg license approval, aiming to support institutional clients with high-security standards for Bitcoin and Ether.

U.S. Crypto Policy Shifts Under New Administration

As the countdown to inauguration day begins, the future of U.S. cryptocurrency policy is coming into focus. President Trump plans to sign an executive order on cryptocurrency by January 20, aiming to establish a U.S. Bitcoin Reserve and enhance banking access for crypto firms. Circle and other major firms have donated to Trump's inaugural committee, anticipating a favorable regulatory environment. Scott Bessent's Treasury confirmation hearing is scheduled for January 16, amid concerns over national debt. CFTC Chairman Rostin Behnam will resign, leaving challenges for his successor in regulating digital assets. Bryan Steil has been appointed chair of the Subcommittee on Digital Assets, while SEC Chairman Gary Gensler critiques the crypto industry as filled with bad actors.

Backpack Exchange Secures FTX EU Assets

Backpack Exchange has acquired FTX EU for $32.7 million, gaining a foothold in the European crypto market with a MiFID II license. The acquisition, approved by both a bankruptcy court and CySEC, allows Backpack to offer compliant crypto derivatives, amidst tighter EU regulations under MiCA. The launch of Backpack EU is planned for Q1 2025, focusing initially on returning EURO-denominated customer funds from FTX EU. The reorganization of FTX indicates potential distributions of $14.7 to $16.5 billion. Despite ownership disputes, Backpack reassures customers of its commitment to fund recovery, aiming to restore trust in the digital asset industry.

Grayscale Restructures Funds Amid Market Trends

Grayscale Investments has rebalanced its portfolios for 2025, emphasizing strategic diversification in response to market trends. The Digital Large Cap Fund now consists of 90% Bitcoin (73.52%) and Ethereum (16.16%), with Cardano (1.44%) added and Avalanche removed. The Decentralized AI Fund welcomes Livepeer (2.83%), while the DeFi Fund includes Curve (6.71%), replacing Synthetix. The GSCPxE Fund adds SUI (7.93%). As Grayscale seeks ETF conversions amidst potential regulatory shifts, analysts note these adjustments reflect a focus on high-growth tokens and decentralized technologies, reinforcing the firm’s leadership in adapting to the evolving crypto landscape.

Coinbase Appeals SEC’s Token Lawsuit

U.S. District Judge Katherine Polk Failla granted Coinbase an interlocutory appeal, pausing the SEC’s lawsuit regarding the classification of certain tokens as securities. The case moves to the Second Circuit Court of Appeals, where Coinbase contests the SEC's claims rooted in the 1946 Howey Test. The outcome could reshape U.S. cryptocurrency regulations, particularly as the SEC, under shifting leadership, faces criticism for regulatory approaches. Additionally, the CFTC subpoenaed Coinbase for information related to Polymarket, a decentralized prediction market, amid concerns over regulatory compliance and user privacy as it gains traction ahead of the 2024 presidential election.

Stablecoin Peg Challenges Spark Community Debate

Usual, a DeFi stablecoin issuer, unveiled new dual exit mechanisms for its USD0++ stablecoin on January 9, 2025, which has led to significant market volatility. The USD0++ briefly dropped to $0.89, stabilizing around $0.92, 8% below its $1 peg. Users now face two options: a conditional exit allowing 1:1 redemption at the $1 peg, forfeiting rewards, or an unconditional exit at a current floor price of $0.87, set to rise to $1 over four years. This change has raised concerns within the community, affecting liquidity providers and prompting a potential multimillion-dollar fallout in the market.

Top Weekly Altcoin Gainers and Losers

Gainers:

XDC Network XDC (+13.65%)

Sui SUI (+10.51%)

Fasttoken FTN (+7.58%)

Bitget Token BGB (+7.33%)

Gate Token GT (+4.96%)

Losers:

ai16z AI16Z (-31.84%)

dogwifhat WIF (-26.62%)

Virtuals Protocol VIRTUAL (-26.38%)

Ethena ENA (-22.35%)

Bonk BONK (-21.33%)