There’s never a dull moment on the blockchain. Here’s what you need to know this week:

Bitcoin

$99,733.49



2.40%

Ethereum

$3,101.10



5.47%

XRP

$2.88



5.14%

Tether

$1.00



0.01%

Solana

$211.88



8.15%

USDC

$1.00



0.00%

See the latest prices

MARKET BYTES

As BTC straddles $100K, what’s behind this week’s volatility?

Last week, bitcoin hit a new all-time high near $110,000, powered by optimism over the second Trump administration’s ambitious plans for crypto. But even as a new approach to policy begins to take shape in Washington (more on this below), volatility returned this week — with BTC sinking below $98,000 on Sunday before rebounding above $103,000 on Wednesday. 

What triggered the dip? One factor was likely collateral damage from a market-shaking AI announcement from the Chinese firm DeepSeek, which drove a wide range of tech stocks sharply lower. As a Standard Chartered report put it, the crypto dip “highlights the continued strong (and strengthening) relationship between digital assets and the tech sector.” 

Another factor casting a pall over markets was doubt that the Federal Reserve would cut interest rates further, which the central bank confirmed during their Wednesday meeting, leaving rates unchanged. During a news conference, Fed Chair Jerome Powell said that the central bank need not be “in a hurry to adjust our policy stance.” 

Here’s what else you need to know about markets this week.

Analysts say ETFs for DOGE, XRP, and LTC are likely on the way

One of the biggest drivers of crypto’s historically high prices over the last year was the launch of spot bitcoin exchange-traded funds (ETFs) last January, which were followed by spot ETH ETFs over the summer. 

Now, with new SEC leadership that is more open to crypto, a huge range of new crypto ETFs could be on the horizon, with new applications emerging almost every day. So, what tokens are likely to get the ETF treatment?

According to analysts, ETFs for Dogecoin (DOGE), XRP, and Litecoin (LTC) could arrive sometime this year — with LTC potentially arriving first because, notes Decrypt, its “regulatory status is less disputed than that of other altcoins.”  (Litecoin’s code is derived from Bitcoin’s.)

• What about memecoins? Last week, a pair of firms submitted a joint application to create an ETF that would hold the new Official Trump (TRUMP) token, and there are similar applications in the pipeline for other memecoins, like BONK. Are they likely to get approved? No one knows yet, but according to Bloomberg’s analysts they could arrive as soon as April.

BTC ETF inflows have surged in recent weeks

Last week, U.S. spot bitcoin ETFs tallied combined inflows of $1.76 billion as spot ETH ETFs notched another $140 million. So far this year, crypto investment products have attracted $4.8 billion in new capital, according to CoinShares' latest report. 

Excitement over Trump-era policies — including the potential for the U.S. government to eventually create a strategic bitcoin reserve — drove some of the gains, per CoinShares’ analysis.

• Smooth operator… On Friday, the Nasdaq exchange filed with the SEC to allow “in-kind redemptions” for BlackRock’s leading IBIT bitcoin ETF. Put simply, institutional investors would be able to redeem their ETF shares directly for BTC, rather than trading them in for cash. As a result, “ETFs should trade even more efficiently than they already do theoretically because things can be streamlined,” explained Bloomberg analyst James Seyffart.

What’s next for Ethereum?

While crypto prices have spiked to new highs in recent months, the second-biggest cryptocurrency, Ethereum, remains around 30% shy of its 2021 peak. 

That underperformance — as well as rising activity on high-throughput blockchains like Solana, which scales as an L1 — has spurred growing debate inside the ETH community about the protocol’s future. 

In a blog post on Friday, ETH cofounder Vitalik Buterin outlined a vision he believes should result in value accruing to token holders. “We should pursue a multi-pronged strategy, to cover all major possible sources of the value of ETH,” he noted — with a focus on layer-2 scaling, security, and interoperability. 

• Growth spurt… In one potential positive sign for the Ethereum network, The Block noted a recent surge in active addresses: “Ethereum’s network activity has found renewed momentum.”

WASHINGTON BTC

In Washington, the “pro-crypto” era has arrived

President Donald Trump promised on the campaign trail to make the U.S. “the crypto capital of the planet” — and in the opening days of his administration, that vision is manifesting in a variety of ways.

Last Thursday, Trump signed a wide-ranging crypto-related executive order. Meanwhile, the Securities and Exchange Commission has begun to open up institutional access to crypto with new rules, and agencies throughout the federal government are gearing up to reshape the U.S.’s approach to crypto regulations.

What does it all mean? Here’s what you need to know.

Trump signed an executive order aimed at bolstering the U.S. crypto industry

The executive action signed on Jan. 23 covers an array of crypto world hot topics, including plans for a potential strategic bitcoin reserve, stablecoins, and how crypto is regulated.

While the order doesn’t specifically name bitcoin, it has created a working group of advisers that will inform the White House on crypto policy, including on “the potential creation and maintenance of a national digital asset stockpile.” 

The order also mentioned promoting dollar-backed stablecoins worldwide, saying that stablecoins are aligned with “promoting and protecting the sovereignty of the United States dollar,” while also effectively “prohibiting” the government from pursuing plans to make a central bank digital currency (CBDC). 

Additionally, the order directed the working group to identify all regulations related to the digital asset sector within 30 days; determine whether these regulations need to be rescinded or modified within 60 days, and provide legislative proposals within six months.

The SEC repealed a controversial crypto rule

Until last Thursday, U.S. banks were effectively barred from holding crypto on behalf of their customers due to a rule called SAB 121. 

The Biden-era SEC rule mandated that banks which hold digital assets for customers mark those items as liabilities on their balance sheets, a highly unusual treatment that created unnecessary complexity according to Hester Peirce, the SEC commissioner leading the agency’s new crypto task force. 

Now, with the implementation of SAB 122, banks can custody crypto for their customers and use generally-accepted accounting standards. In practice, this means that a bank holding $1 million in crypto for customers wouldn’t need to record the entire $1 million as a liability, but only the estimated risk of loss, which is a standard accounting practice.

Across the federal government, crypto is the talk of the town

Trump’s embrace of crypto appears to have encouraged other parts of the federal government to move swiftly toward defining crypto’s regulatory path. 

Here are a few groups leading the charge:

• The U.S. Commodity Futures Trading Commission Acting Chair Caroline Pham announced a series of public roundtable discussions around crypto and prediction markets. Over the next several months the agency will also meet with industry leaders and other stakeholders to help determine the agency’s regulatory stance. “A holistic approach to evolving market trends will help to establish clear rules of the road and safeguards that will promote U.S. economic growth and American competitiveness,” said Pham.

• SEC Acting Chairman Mark Uyeda has launched a “crypto task force,” which is led by SEC commissioner Hester Peirce, who has developed a reputation during her seven-year tenure for her pro-crypto positions. The main goal of the task force is developing a clear set of rules for the industry, especially around the registration of coins.  “Clarity regarding who must register, and practical solutions for those seeking to register, have been elusive. The result has been confusion about what is legal, which creates an environment hostile to innovation and conducive to fraud,” the commission’s announcement said. “The SEC can do better.”

• Sen. Cynthia Lummis (R., Wyo.) was named to lead the first-ever Senate Banking Committee panel on digital assets last Thursday. The panel’s stated focus will be to pass bipartisan legislation that promotes responsible innovation around topics including market structure, stablecoins, and a strategic bitcoin reserve. “Digital assets are the future, and if the United States wants to remain a global leader in financial innovation, Congress needs to urgently pass bipartisan legislation establishing a comprehensive legal framework for digital assets and that strengthens the U.S. dollar with a strategic bitcoin reserve,” said Lummis. 

The bottom line…

After four years of regulatory limbo under the Biden administration, many across the crypto industry are now optimistic about the potential for legislative progress during Trump’s presidency.

“It absolutely changes the fundamentals on the ground,” said Kara Calvert, vice president for U.S. policy at Coinbase. “You have a president who embraces digital assets and created an advisory council that recognizes the need for non-government expertise. That’s really exciting.”

NUMBERS TO KNOW

$11 billion

Total Solana-based stablecoin market cap as of Sunday, an all-time high. Boosted by memecoin trading, including the recently launched TRUMP token, Solana has seen record stablecoin growth as onchain activity has soared over the last two weeks.

15,777

Number of bitcoin wallets holding between 100 and 1,000 BTC, a new all-time high among “mid-sized whales” reports The Defiant, citing market intelligence data from Santiment: “The milestone points to a significant shift in market dynamics, reflecting sustained confidence among major investors.”

246%

Percent increase, quarter-over-quarter, of XRP’s market capitalization in Q4 of 2024 — outpacing the combined market capitalization growth of BTC, ETH, and SOL, notes a new report from Messari. Among the reasons cited by Messari: a growing number of Wall Street firms applying for XRP ETFs, the launch of Ripple’s stablecoin (RLUSD) in December, and deflationary pressures to the token’s native XRPL network.

11%

The minimum size a country’s Bitcoin reserves should be relative to their gold reserves, according to Coinbase CEO Brian Armstrong. Why that specific amount? As Armstrong explained on X last Thursday: “Bitcoin’s market cap of ~2T represents about 11% of gold’s market cap of ~$18T.” However, the Coinbase CEO also said he expects BTC’s market cap to exceed gold’s in the next five-to-ten years.

SECURITY PSA

Staying smart about social media and crypto

Social media is a double-edged sword for crypto users. Social media platforms are a dynamic hub for crypto discussions and news, but they also attract scammers eager to exploit users’ lack of experience or trust in seemingly legitimate profiles. 

Here are some useful tips for getting the most out of social media without falling victim.

TOKEN TRIVIA

When was Dogecoin originally created?

Find the answer below.

Trivia Answer