Bitcoin led the market higher yesterday, particularly around 8 PM ET when short positions were liquidated, causing a notable increase in spot volume and a rise in open interest. Funding rates remained stable, indicating that the rally was driven by spot buying rather than leveraged speculation. US-linked cryptocurrencies saw significant gains, fueled by ongoing rumors that Trump might consider them for inclusion in a US crypto reserve, which propelled SOL and XRP to new highs. It’s also worth mentioning the strong performance of altcoins this week, with the TOTAL3 index up 22% since Monday’s lows.
The potential shift in US crypto policy is gaining traction, with reports suggesting that Trump could announce cryptocurrency as a key policy priority, signaling a major industry change. While some argue this news may already be priced in, we believe there’s still upside left in the market.
Crypto miners have been outperforming Bitcoin since the start of 2025, with their collective market cap growing by 16% year-to-date. U.S.-listed miners have doubled their BTC holdings since January 2024, now holding a total of 100k BTC.
XRP has been attracting considerable attention, with some platforms reporting it as the most traded asset in the past 24 hours, especially in USD pairs. This surge is supported by record futures open interest and an uptick in large holders.
In a noteworthy development, a blockchain address linked to Trump’s World Liberty Finance (WLF) project acquired nearly $10 million worth of ETH this week.
President-elect Donald Trump plans to issue an executive order prioritizing cryptocurrency as a national policy focus, which will establish a crypto advisory council to strengthen government collaboration with the industry. The move signals a more open stance on digital assets by his incoming administration and may include measures such as repealing the SEC’s controversial crypto accounting guidance and creating an “America-first” strategic crypto reserve. While specifics and timing remain unclear, the initiative aims to position the U.S. as a leader in the crypto sector and enhance the industry's influence within federal policymaking.
During a January 16 hearing of the Senate Finance Committee, Scott Bessent—President-elect Trump’s anticipated Treasury Secretary—asserted that there is no justification for the U.S. to implement a central bank digital currency. Questioned by Senator Marsha Blackburn about the potential need for a digital dollar in light of global developments like China’s digital yuan, Bessent argued that CBDCs are primarily for nations lacking secure investment options, emphasizing that U.S. dollar holders already have access to a wide range of secure assets. His remarks came amid broader debates over CBDCs, including Republican-led legislative efforts to block their issuance, and reflect his stance as a potential nominee with a background in hedge fund management and previous support for crypto innovation.
Europe’s Digital Operational Resilience Act (DORA) now applies to crypto businesses, expanding the scope of MiCA and mandating enhanced cybersecurity, risk management, and comprehensive third-party vendor registers for virtual asset service providers. Crypto firms like MoonPay and Gemini are mobilizing internal teams, updating vendor relationships, and implementing new governance structures and ICT risk management frameworks to comply with DORA. The regulation aims to improve resilience against cyberattacks and IT failures, strengthen investor protection, and enhance market integrity, while potentially prompting consolidation among smaller service providers that may struggle with the stringent requirements.
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