This Week’s Recap
The U.S. Department of Justice announced plans to auction $6.5 billion worth of Bitcoin seized from Silk Road, following a Dec. 30 court decision. This auction is part of the government’s 198,000 BTC reserves, valued at $18.5 billion, and has raised concerns about downward pressure on Bitcoin’s price.
Meanwhile, Bitcoin’s price movements were influenced by the Federal Reserve’s December meeting minutes, which signaled slower rate cuts in 2025. The continued stance on monetary tightening led to a midweek price pullback. Despite this, a Bitwise survey revealed that 56% of U.S. financial advisors are now more likely to recommend crypto investments following Donald Trump’s election victory. However, with only 35% able to directly invest for clients, access remains a challenge. Bitcoin briefly crossed $100,000 on Jan. 7 before pulling back to $92,500, reflecting its continued volatility.
States like Texas, Pennsylvania, and New Hampshire are considering Bitcoin reserves as part of their financial strategies. Proposals include Texas storing Bitcoin in cold wallets and Pennsylvania potentially allocating 10% of its State General Fund, Rainy Day Fund, and the State Investment Fund to Bitcoin. These moves demonstrate a growing trend of using Bitcoin as a hedge against inflation and a diversification tool.
Sony made headlines with the mainnet launch of Soneium, a blockchain platform built on Optimism’s OP Stack. Designed to protect creators’ intellectual property and foster equitable value distribution, Soneium’s testnet saw over 15.4 million active wallets and 50 million transactions. Sony plans to expand its focus to NFT-driven fan engagement and creator incubation programs, showcasing how blockchain can transform creative industries.
Institutional adoption saw a boost as BlackRock launched the iShares Bitcoin ETF on Cboe Canada, simplifying Bitcoin exposure for Canadian investors. BlackRock’s U.S. spot Bitcoin fund attracted $37 billion in inflows in 2024, and analysts predict Bitcoin ETFs could draw another $48 billion in 2025, driven by institutional demand for inflation hedges.
On the regulatory front, President-elect Donald Trump is expected to issue a crypto-focused executive order on his first day in office. The order would establish a presidential crypto council and repeal restrictive SEC rules like SAB 121. Additional proposals include forming a joint CFTC-SEC working group and promoting international crypto adoption. These reforms aim to foster innovation but will depend on their speed of implementation.
Bitcoin hit $100,000 on January 15, fueled by easing inflation concerns reflected in the latest U.S. Consumer Price Index report, which showed annual inflation at 2.9% and a core CPI increase of 3.2%. The weaker U.S. dollar further bolstered demand for Bitcoin as an inflation hedge. However, analysts warned of potential corrections, citing narrowing Bollinger Bands—a technical indicator suggesting heightened volatility ahead.
This week was marked by Bitcoin’s price swings, influenced by regulatory updates, macroeconomic signals, and institutional activity. After briefly reaching $100,000 on CPI relief, Bitcoin pulled back following Fed minutes and auction news but managed to hold its support at $90,000 before swiftly returning again to approx $100k at the time of issuing this report. That’s your weekly wrap-up.
Crypto Headlines & Industry Updates
US cleared to sell $6.5B in Bitcoin — Will it crash BTC price?
The U.S. Department of Justice (DOJ) plans to auction $6.5 billion worth of Bitcoin (BTC) seized from Silk Road, following a Dec. 30 court ruling that resolved a lengthy legal battle over its ownership. This amount is part of the U.S. government’s total reserves of 198,000 BTC, valued at approximately $18.5 billion as of Jan. 9, according to Arkham Intelligence.
Bitcoin pulls back as Fed’s December minutes signal slower rate cuts in 2025
The drop in Bitcoin earlier this week was driven by market reactions to the Federal Reserve’s December meeting minutes, which indicated a slower pace of rate cuts in 2025. This signaled prolonged monetary tightening, contributing to investor caution and a decline in Bitcoin’s price.
56% of advisers more likely to invest in crypto after Trump win: Bitwise survey
A Bitwise survey reveals that 56% of U.S. financial advisors are more inclined to invest in cryptocurrency following Donald Trump’s presidential election victory, with 99% of current crypto investors planning to maintain or increase exposure this year. Despite growing interest, access remains a barrier, as only 35% of advisors can purchase crypto within client accounts. Meanwhile, 71% report clients independently investing in crypto, signaling a broader wealth planning opportunity. Bitcoin’s recent volatility saw it surpass $100,000 on Jan. 7 before dropping to $92,500 on Jan. 8, as U.S.-based Bitcoin reserves reached an all-time high, now 65% greater than offshore holdings, reflecting increasing domestic adoption.
United States of Bitcoin? These States Are Considering BTC Reserves
Several U.S. states, including Texas, Pennsylvania, Ohio, New Hampshire, and North Dakota, are proposing Bitcoin reserves to hedge against inflation and diversify funds. Plans include Texas holding Bitcoin in cold storage, Pennsylvania allocating up to 10% of state funds, and New Hampshire enabling lending or staking. Advocates push for broader adoption, reflecting growing interest in integrating Bitcoin into public financial strategies.
Sony’s public blockchain platform Soneium launches on mainnet
Sony’s blockchain subsidiary, Block Solutions Labs, announced the mainnet launch of Soneium, a public blockchain designed to protect creators’ rights and ensure equitable value distribution between creators and fans. Built on Optimism’s OP Stack and Superchain, Soneium aims to bridge Web2 and Web3 by simplifying blockchain interactions for creators and users. Following its testnet debut with 15.4 million active wallets and over 50 million transactions, Soneium will focus on expanding use cases, including NFT-based fan marketing and incubation programs, to foster innovation and global fan engagement.
Trump’s Day-One Crypto Executive Order Likely First of Many: Sources
President-elect Donald Trump is expected to issue a crypto-related executive order on his first day in office, establishing a presidential crypto council of industry leaders and directing the SEC to repeal SAB 121, a rule discouraging banks from holding crypto. Additional orders under consideration include forming a joint crypto working group between the CFTC and SEC, rescinding SEC rules targeting DeFi, and fostering international crypto innovation through the State Department. While sweeping reforms are anticipated, their implementation will take time, with Trump’s transition team actively seeking proposals for potential crypto-related executive orders.
BlackRock launches new Bitcoin ETF on Cboe Canada
BlackRock has launched the iShares Bitcoin ETF on Cboe Canada, offering Canadian investors access to its flagship U.S. spot Bitcoin fund, iShares Bitcoin Trust (IBIT). Trading under the ticker IBIT and IBIT.U (USD-denominated), the ETF simplifies Bitcoin exposure by removing custody complexities. BlackRock’s U.S. IBIT fund has attracted over $37 billion in net inflows since its 2024 debut, contributing to U.S. Bitcoin ETFs surpassing $100 billion in net assets last year. Analysts predict Bitcoin ETFs could see an additional $48 billion in net inflows in 2025, driven by growing institutional demand as investors hedge against inflation and geopolitical risks.
Bitcoin price nears $100K as US dollar dips on CPI relief
Bitcoin passed $100,000 on Jan. 15, supported by U.S. Consumer Price Index (CPI) data that aligned with expectations, easing inflation concerns. The BTC/USD pair rose 3% on the day, building confidence among traders as it rebounded from two-month lows. Declining U.S. dollar strength and a potential invalidation of bearish patterns added to bullish sentiment. However, firms like QCP Capital cautioned about potential volatility and a retest of $90,000 amid market adjustments to President-elect Trump’s incoming administration. Analysts also flagged narrowing Bollinger Bands, indicating the likelihood of significant price swings ahead.
Bitcoin Market Analysis
Bitcoin and Ethereum have seen notable price actions recently, driven by technical and macroeconomic factors.
Technical Overview
On January 16, 2025, Bitcoin broke the critical $100,000 level, reaching an intraday high of $100,725 before retreating slightly. This move follows heightened volatility, with Bitcoin dipping to a low of $89,000 on January 11, testing a key support level at $91,815, which aligns with a strong horizontal support zone. The release of CPI data on January 15, indicating a further decline in inflation, acted as a catalyst for renewed bullish momentum. DEC CPI showed Core CPI down to 0.22% month-over-month, with services making up 90% of the move, shelter contributions dropping to 50%, goods cooling down (only 10% of Core CPI), and supercore down to 0.2% MOM. This data likely marks the first major challenge to the “higher for longer” thesis on Federal Reserve policy. Bitcoin’s trading volume spiked by over 35% above its 7-day average, signaling strong buying interest. Technically, Bitcoin has broken out of a downward resistance line, with the RSI at 62 and a bullish MACD crossover, suggesting room for further upside. Immediate resistance lies at $102,850, followed by $105,900 and the previous high at $108,364.
BTC/USD 1-day chart. Source: Cryptobirb/X
Ethereum followed a similar trajectory, breaking above $3,400 on January 16, 2025, and reaching an intraday high of $3,472.06. Like Bitcoin, Ethereum experienced a sharp pullback last week, dipping to a low of $2,920[BR1] [FJ2] on January 13 before bouncing back. The CPI report on January 15 helped Ethereum reclaim critical levels, with trading volume increasing by 28% compared to the weekly average. DEC CPI’s downward shift in shelter and goods prices, along with broader cooling in inflation, provided a supportive macroeconomic backdrop for risk assets like Ethereum. Indicators such as the MACD crossover and the RSI at 58, well below overbought territory, suggest further upside potential. Ethereum is currently targeting $3,600 and $3,800, with $4,000 serving as a psychological barrier. A failure to sustain above $3,400 could lead to a retest of support at $2,900 to $3,000 range.
The breakouts in Bitcoin and Ethereum are significant milestones, but sustaining these levels remains a key challenge. Bitcoin’s ability to hold above $100,000 is critical for building momentum toward $105,000 and $110,000, while Ethereum must consolidate above $3,400 to maintain its bullish trend. Both assets have shown resilience during recent pullbacks, with strong buyer interest underpinning their rallies. However, failure to hold current levels could see Bitcoin revisiting $95,000 range, and Ethereum retesting $2,900 range.
The favorable macroeconomic backdrop, particularly the DEC CPI report, has provided a tailwind for cryptocurrencies. With inflation cooling and dovish signals from the Federal Reserve gaining traction, risk-on sentiment has grown stronger. This is reflected in the significant trading volumes and bullish price action for both Bitcoin and Ethereum. As they approach critical resistance zones, traders should watch volume trends and macroeconomic developments closely to assess the sustainability of the rally. Bitcoin and Ethereum’s ability to capitalize on this momentum will likely influence broader market performance in the weeks ahead.
CoinGecko 2024 Annual Crypto Industry Report
CoinGecko released its Annual 2024 Crypto Industry Report, highlighting the key developments and trends that shaped the crypto landscape last year.
The total crypto market cap reached an all-time high of $3.91 trillion, with Bitcoin surging to $108,135, bolstered by Trump’s re-election, U.S. spot ETF approvals, and Federal Reserve rate cuts. Bitcoin’s dominance grew to 54.5%, marking its continued central role in the market. Stablecoins rebounded strongly, with Tether maintaining over 70% market share and newcomers like Ethena’s USDe gaining attention for yield-driven use cases.
Source: CoinGecko
Memecoins stole the spotlight, with their market cap skyrocketing to over $100 billion, surpassing DeFi in market share. Solana and Base emerged as leading ecosystems, driven by the memecoin boom and AI agent narratives. Solana solidified its position as a major challenger to Ethereum, while Base outperformed Arbitrum to become the top Layer 2 chain within Ethereum’s ecosystem.
NFT trading volumes rebounded strongly in Q4, rising 98% to $2.3 billion, fueled by high-profile launches like Pudgy Penguins’ PENGU token. Blur reclaimed its spot as the leading NFT marketplace, while lending activity in the NFT space surged, with Q4 loan volumes hitting $515 million. Despite early-year stagnation, the NFT market regained momentum as Ethereum and Solana ecosystems saw renewed activity.
DeFi saw its total market cap grow by 52.5% in 2024, though its share of the overall crypto market declined due to competition from newer narratives like AI tokens and memecoins. Ethereum maintained its dominance in DeFi TVL, while Solana increased its share significantly. Liquid staking, lending, and bridges remained the largest DeFi segments, with stablecoins and RWAs driving growth.
Exchanges experienced record trading volumes, with spot CEXes reaching $6 trillion in Q4, a 111.7% QoQ increase. DEX trading also grew significantly, with Solana overtaking Ethereum in quarterly DEX trading volume for the first time in Q4. Hyperliquid emerged as a standout in decentralized perpetual trading, capturing over 55% of market share in Q4 after a successful HYPE token airdrop.
AI agents and token launch platforms like Pump.fun marked significant innovation in 2024. AI agent tokens grew from a market cap of $4.8 billion to $15.5 billion, while Pump.fun facilitated the deployment of over 5.3 million tokens, generating more than $400 million in revenue.
The report emphasizes a transformative year for crypto, marked by Bitcoin’s dominance, ecosystem diversification, and the rise of new narratives. As the market heads into 2025, CoinGecko anticipates further growth fueled by innovation and adoption across sectors.
Mark Your Calendars
Economic Data
January 20, 2025
- U.S. Presidential Inauguration: The inauguration of President-elect Donald Trump is expected to influence market sentiment, particularly with his administration’s pro-crypto stance and plans to establish a Bitcoin reserve.
January 28–29, 2025
- Federal Reserve FOMC Meeting: Key decisions on monetary policy and interest rates could impact broader financial markets, including Bitcoin.
SEC Decisions
January 25, 2025
- Solana ETF Applications: The SEC’s decision on Solana ETF applications could have implications for the broader cryptocurrency market.
Futures and Options Expirations
January 25, 2025
- Bitcoin Monthly Options Expiry: The expiration of monthly Bitcoin options could increase volatility as traders adjust positions.
January 26, 2025
- CME Bitcoin Futures Expiration: The expiration of January 2025 futures contracts on CME could lead to heightened price fluctuations.
Token Unlocks
January 24, 2025
- Arbitrum (ARB): Arbitrum (ARB): Cliff unlock of 92.65 million ARB tokens (2.2% of circulating supply), worth approximately $71.77 million.
January 26, 2025Fasttoken (FTN): Cliff unlock of 20 million FTN tokens (4.67% of circulating supply), worth approximately $76.40 million.
