Market Commentary

The year kicked off with global markets watching Trump’s inauguration and the first set of executive orders. Bitcoin surged to a new all-time high of $109K, while Solana and Ripple posted strong gains of 22% and 45%, fueled by expectations of U.S. spot ETFs under the new SEC leadership. Meanwhile, Ethereum underperformed, closing the month down 1%, extending its recent struggles. Despite anticipation, no immediate crypto-related executive orders post-inauguration triggered a market correction in early January. However, Bitcoin rebounded to new highs by mid-month before broader market sentiment turned cautious. The launch of DeepSeek, China’s AI competitor, along with the Fed’s hawkish stance, led to risk-off moves across equities and crypto.

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January also marked the first anniversary of spot Bitcoin ETFs, which now hold 1.13 million BTC—an astonishing 262% increase from their initial $29.38 billion AUM. Institutional demand remains a key force, with Bitcoin wallets holding 100 to 1,000 BTC reaching a record 15,777. Notably, Norway’s sovereign wealth fund increased its Bitcoin exposure by 153% in 2024, signaling continued institutional confidence.

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Regulatory shifts were also in focus. South Korea announced plans to lift its ban on institutional crypto trading, while newly appointed crypto-friendly SEC Commissioner Mark Uyeda took office. According to Bank of America, U.S. banks are prepared to adopt cryptocurrency payments once regulatory clarity improves, aligning with the SEC’s new policy direction.

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Finally, the month saw unexpected market action in Trump Memecoin and Melania, both experiencing sharp fluctuations, adding an element of speculation-driven excitement to the evolving digital asset landscape.

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Market Outlook

As the most volatile month for Bitcoin and crypto assets historically, February brings several market-moving uncertainties. The potential impact of Trump’s tariff policy and the effectiveness of the D.O.G.E. (Department of Government Efficiency) initiative remain key unknowns. Market speculation over these policies’ inflationary effects could drive short-term FUD, but clearer insights will emerge in the next 100 days. Meanwhile, Elon Musk is reportedly exploring blockchain solutions to improve U.S. federal spending transparency and accountability, a move that could strengthen crypto’s role in government innovation.

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Trump’s “America First” policy signals that U.S.-based crypto assets are likely front-runners for the next wave of SEC-approved spot ETFs. Notably, XRP, Solana, Litecoin, Cardano, Chainlink, Polkadot, and even Dogecoin are among the top contenders. CME’s website hints at upcoming XRP and SOL futures, while new ETF filings for Chainlink, Cardano, and Polkadot reinforce institutional demand. This aligns with a recent S&P Global Crisil Coalition Greenwich report showing that 40% of fund managers—many overseeing portfolios above $100 million—are now interested in trading 10 or more altcoins, highlighting a major shift in risk appetite toward diversified crypto investments.

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Ethereum faces increasing scrutiny over its governance structure, with critics citing inefficiencies in decision-making and value creation. Despite technological advancements, the network struggles to maintain a competitive edge as rival ecosystems gain momentum. With major institutional players seeking greater transparency and scalability, Ethereum’s governance challenges could become a focal point in 2025.

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Disclaimer: This content is for educational and informational purposes only and does not constitute trading, legal, or investment advice. It is directed at our followers in Switzerland and may not represent the views of FiCAS. The author may hold assets mentioned in this article and assumes no obligation or responsibility for any actions taken based on the information provided.