This Week’s Recap
Ethereum co-founder Vitalik Buterin detailed a roadmap for scaling Ethereum by enhancing Layer 2 (L2) adoption, increasing blob scaling, and reinforcing ETH’s role as the primary economic asset. He emphasized the need for L2 interoperability, ensuring that different L2 networks can seamlessly communicate and operate efficiently. Additionally, he proposed that L2s contribute a percentage of their fees to Ethereum’s base layer to sustain ETH’s value in an L2-centric ecosystem. Developers are also working on “based” rollups, a new framework that decentralizes transaction sequencing by integrating it into Ethereum’s validator set. While this approach improves security and decentralization, it may slightly increase transaction confirmation times on L2 networks.
Institutional Bitcoin adoption continues to accelerate as MicroStrategy acquired an additional 10,107 BTC for $1.1 billion, bringing its total Bitcoin holdings to 471,107 BTC. The company purchased at an average price of $105,596 per Bitcoin and has announced plans to raise up to $42 billion over the next three years to continue accumulating BTC, signaling long-term confidence in Bitcoin’s role as a reserve asset.
Following the resignation of SEC Chair Gary Gensler, asset managers swiftly filed new applications for crypto ETFs, anticipating a more crypto-friendly regulatory environment. Grayscale and CoinShares have submitted filings for XRP and Litecoin ETFs, while Cboe BZX Exchange refiled four Solana ETF applications for Canary, Bitwise, 21Shares, and VanEck. Additionally, REX Shares and Osprey Funds applied for memecoin ETFs, covering Dogecoin, TRUMP, and BONK, reflecting rising institutional interest in speculative digital assets.
In regulatory enforcement, Tron, Tether, and TRM Labs worked with Spanish authorities to freeze $26.4 million in crypto assets linked to a European money laundering operation. This action marks the largest coordinated freeze by the T3 Financial Crime Unit since its establishment in 2024.
President Trump’s executive order on digital assets has introduced a comprehensive regulatory framework for crypto markets while explicitly banning the creation of a U.S. central bank digital currency (CBDC). The order also establishes a working group to explore crypto-related policies, including the potential for the U.S. government to hold Bitcoin as a strategic reserve asset. The executive order has already impacted the market, with crypto exchange-traded products (ETPs) seeing $1.9 billion in inflows last week and Bitcoin reaching an all-time high of $109,000.
At Davos 2025, global leaders discussed the convergence of AI and blockchain, identifying key trends such as AI-blockchain integration, real-world asset tokenization, DeFi advancements, Web3 governance, and institutional crypto adoption. The event highlighted growing interest in regulatory clarity, sustainability, and the long-term implications of AI-powered decentralized systems.
Crypto Headlines & Industry Updates
Vitalik Buterin emphasizes Layer 2s for Ethereum scaling
Vitalik Buterin outlined a strategy to scale Ethereum by expanding layer-2 (L2) adoption, enhancing blob scaling, and reinforcing ETH’s role. He urged L2 interoperability, proposed increasing blob count for transaction capacity, and suggested L2 networks contribute fees to sustain ETH’s value in an L2-centric ecosystem.
Regulatory filings from Grayscale and CoinShares propose ETFs tracking XRP and Litecoin
Grayscale and CoinShares have filed for ETFs tracking XRP and Litecoin, following Bitcoin and Ethereum ETF successes. CoinShares proposed Litecoin and XRP ETFs, while Grayscale seeks approval for similar products. These filings signal growing institutional interest but remain subject to SEC review before potential approval.
Crypto ETF issuers file numerous applications post-Gensler
Following SEC Chair Gary Gensler’s resignation, asset managers rushed to file crypto ETFs, anticipating a friendlier regulatory climate. CoinShares proposed Litecoin and XRP ETFs, while Grayscale seeks to convert Litecoin and Solana trusts. REX and Osprey filed for memecoin ETFs, reflecting optimism under Trump’s administration and potential SEC leadership changes.
Ethereum developers and L2 leaders focus on based and native ro
Ethereum developers and L2 leaders are adopting “based” rollups to enhance security and decentralization by integrating sequencers into Ethereum’s validator set. This shift may slow L2 transactions but strengthens Ethereum’s core and boosts ETH’s value. FABRIC infrastructure is being explored to improve interoperability
MicroStrategy has acquired an additional 10,107 bitcoins for $1.1 billion, averaging $105,596 per coin, bringing its total holdings to 471,107 bitcoins. This purchase was funded through the sale of approximately 2.77 million shares. The company plans to raise up to $42 billion over three years to continue expanding its bitcoin holdings.
Tron, Tether, and TRM freeze $26.4M linked to European crypto laundering gang
Spanish authorities, in collaboration with blockchain firms Tron, Tether, and TRM Labs, have frozen $26.4 million in cryptocurrencies linked to a pan-European money laundering operation. This marks the largest coordinated freeze by the T3 Financial Crime Unit since its launch in August 2024.
Trump’s crypto executive orders drive $1.9B in digital asset fund flows
Following U.S. President Donald Trump’s executive order promoting digital assets, crypto exchange-traded products (ETPs) saw $1.9 billion in inflows last week, totaling $4.7 billion year-to-date. Bitcoin-based ETPs led with $1.6 billion, coinciding with Bitcoin reaching a new all-time high above $109,000 on January 20.
US Solana ETF race heats up as Cboe BZX submits 4 refilings, including for a spot Solana ETF
Cboe BZX Exchange has refiled applications for Solana-based ETFs on behalf of four major investment firms: Canary Solana Trust, Bitwise Solana ETF, 21Shares Core Solana ETF, and VanEck Solana Trust. These filings aim to offer traditional investors exposure to Solana without directly holding the cryptocurrency.
Trump finally signed a crypto executive order. Here’s what it means
Implications of Trump’s Crypto Executive Order
- Regulatory Clarity – A federal framework could attract institutional investors and accelerate adoption.
- CBDC Ban – Strengthens private crypto but limits the Fed’s digital dollar plans.
- Pro-Crypto Shift – Signals a friendlier stance, potentially reducing SEC enforcement actions.
- U.S. Crypto Reserves? – Raises the possibility of a government-held digital asset stockpile.
- Institutionalization – Encourages Wall Street adoption but may increase compliance burdens.
- Global Impact – Strengthens U.S. leadership in crypto but gives China’s digital yuan an edge.
- Legislative Uncertainty – Execution depends on Congress and future administrations.
Overall Bullish for crypto, but execution remains uncertain.
Crypto, AI, And DeepSeek: Must-Know Trends From Davos 2025 Now
At Davos 2025, leaders identified 13 key trends in AI and blockchain:
- AI-Blockchain Integration: Enhancing operational efficiency and creating autonomous networks.
- Decentralized Physical Infrastructure Networks (DePIN): Combining blockchain with physical infrastructure for new opportunities.
- Blockchain Gaming Expansion: Growth driven by NFT integration and scalability.
- Tokenization of Real-World Assets: Increasing liquidity and market access.
- DeFi Innovations: Advancing decentralized finance applications.
- Institutional Adoption: Growing interest from traditional financial institutions.
- Regulatory Clarity: Improving guidelines to boost market confidence.
- Web3 Technologies: Reshaping ownership and governance models.
- Sustainable Blockchain Practices: Focusing on eco-friendly solutions.
- Ethical AI Development: Ensuring responsible AI advancements.
- Rise of Decentralized Autonomous Organizations (DAOs): Emerging new governance structures.
- Women in Tech Leadership: Increasing female representation in technology sectors.
- Global Economic Transformation: Leveraging AI and blockchain for economic change.
These trends highlight the evolving landscape of technology and its potential impact on various industries.
Bitcoin Market Analysis
Bitcoin 7-Day Market Recap: Accumulation, Volatility, and AI-Driven Jitters
Bitcoin (BTC) traded within a volatile range of $97,785 to $106,948 over the past week, facing a mix of bullish accumulation, and AI-induced market turbulence. While long-term holders (LTHs) continued to accumulate, and institutional wallets reached all-time highs, Bitcoin also faced strong resistance at $106K and a notable dip driven by broader market fears over China’s DeepSeek AI model.
Optimism remains strong among long-term investors. LTHs remain in accumulation mode, buying dips and only engaging in healthy profit-taking, while short-term holders (STHs) have been aggressively entering the market on price surges, driven by a little FOMO. Meanwhile, Bitcoin wallets holding between 100-1,000 BTC have reached an all-time high of 15,777, signaling continued institutional confidence and a supply squeeze that could drive future price appreciation.

Source: Santiment
However, retail participation remains subdued. On-chain activity for transactions under $10K has dropped by 19.34%, showing that the typical retail-driven euphoria is not yet present despite Bitcoin’s proximity to all-time highs. Historically, retail FOMO has been a key driver of major cycle peaks, suggesting there is still room for further upside before BTC enters overheated territory.

Source: Cryptoquant @cauconomy
The DeepSeek AI Shock: Bitcoin’s 7% Drop Explained
On January 28, Bitcoin fell 7% from $105,000 to a low of $98,000, mirroring a sharp decline in tech stocks, particularly Nvidia (-17%). The sell-off was triggered by the rise of China’s DeepSeek AI model, which shook market confidence in U.S. tech dominance. DeepSeek, an open-source, cost-efficient AI model, quickly climbed to No. 1 on Apple’s App Store, raising concerns that companies like OpenAI, Google, and Nvidia could face competitive pressures. This led to a broader risk-off sentiment, which spilled into crypto, as Bitcoin is often treated as a high-beta asset correlated with tech stocks.
JP Richardson, CEO of Exodus, noted that when tech stocks experience shocks, crypto markets tend to follow, explaining why Bitcoin reacted sharply to the AI-driven fears. However, analysts believe this panic may be temporary, as U.S. companies will likely leverage DeepSeek’s technology rather than be entirely displaced by it.
After the AI-induced dip, Bitcoin staged a recovery on January 29, following dovish signals from the Federal Reserve. The central bank held interest rates steady at 4.25%-4.5%, but Fed Chair Jerome Powell reassured investors that rate cuts remain on the table for 2025. While Powell did not provide a specific timeline, markets interpreted the lack of hawkish language as a positive signal, fueling a renewed risk-on sentiment.
The bond market reaction was also muted, with U.S. Treasury yields nudging lower, indicating that investors remain optimistic about potential rate cuts later this year. This macro sentiment helped Bitcoin reclaim the $103K level
Technical Analysis & Key Levels
Despite the AI-driven dip, Bitcoin remains in a structural uptrend with strong institutional accumulation and key support levels holding.

Source: x.com/ColinTCrypto/
Bitcoin’s short-term key support levels remain at $101K-$102K, aligning with the 20-day EMA, making it a crucial short-term support zone. If BTC falls below this level, the next major downside target is $97K, which marked the weekly low. A further breakdown to $91.3K, a critical neckline, could confirm a double-top pattern, potentially leading to a steeper decline toward $75K. On the upside, $106K continues to be a major resistance level, with multiple failed breakout attempts. If Bitcoin successfully clears $109K, the pre-Trump inauguration high, it could open the door for a rally toward $115K+. Momentum indicators show a neutral-bullish RSI at 60.69, indicating that BTC is in an uptrend but not yet overbought. Meanwhile, MACD remains bullish but is losing momentum, signaling a critical inflection point where Bitcoin must either push higher or risk further consolidation.
Other Analysis and Commentaries
@woonomic pointed out that capital inflows in the Bitcoin network starting to climb again

@intocryptoverse shared a chart of Bitcoin Fear & Greed index showing that the index is still in the decline. Despite the price being near all time high

Mark Your Calendars
Political Events:
- February 1, 2025:
- Trump Tariffs on Canada, Mexico, and China: New tariffs could introduce economic uncertainty, potentially affecting global markets, including cryptocurrencies, by shifting investment strategies or causing market volatility.
Token Unlocks:
- January 31, 2025:
- Optimism (OP): 31.34M tokens (2.31% of circulating supply) will be unlocked, valued at approximately $46.65M. This could potentially lead to increased supply on the market, affecting price if sold off.
- February 1, 2025:
- Sui (SUI): 64.19M tokens (2.13% of circulating supply) will be released, with an estimated value of $255.52M.
- ZetaChain (ZETA): 44.26M tokens (7.68% of circulating supply) will unlock, amounting to $19.12M. This represents a significant portion of the circulating supply, potentially impacting market dynamics.
- February 2, 2025:
- Ethena (ENA): 40.63M tokens (1.34% of circulating supply) will be released, with an estimated value of $29.31M.