January 20, 2025

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Trading Desk Insights

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It’s been a highly eventful weekend in the crypto space.

For those monitoring Crypto Twitter late on Friday, you’re likely among a select group that witnessed a rare opportunity unfold. Bitcoin soared to a new all-time high, briefly touching $109,500, fueled by the launch of meme coins by Donald and Melania Trump. Trump’s coin achieved a market cap of $15 billion, positioning itself within the top 20 cryptocurrencies, with daily volumes surpassing $30 billion. Meanwhile, Melania's coin reached $2 billion in market cap in just hours. This surge has sparked renewed optimism in the market, with traders and investors betting on a favorable outcome for the crypto industry under the new administration.

The TRUMPOFFICIAL/USDT pair has taken center stage, becoming the most traded pair across major exchanges over the past 24 hours, representing a significant portion of total volume at one point.

As of today, Donald Trump will be sworn in as the 47th President of the United States. The ceremony, which has been relocated indoors due to harsh weather conditions, will be followed by the signing of several executive orders. One of the most anticipated moves is a formal delay of the US TikTok ban, while speculation suggests Trump may soon declare a national emergency to bolster immigration and border security. In his rally on Sunday, Trump promised, "By the time the sun sets tomorrow, the invasion of our borders will have come to a halt."

On the crypto front, Ethereum has continued to lag behind Bitcoin, with its BTC/ETH ratio falling to its lowest point since March 2021. Part of Ethereum's struggle stems from the rising popularity of the Solana blockchain for meme coin launches. Solana has seen impressive growth, generating over $35 million in fees and at least $14 million in revenue, with volume tripling over the weekend compared to Thursday.

Meanwhile, the performance of crypto ETFs has been strong. Bitcoin saw $975.6 million in inflows on Friday, continuing a streak of over $2.3 billion in the last three trading sessions. Ethereum, while trailing Bitcoin, attracted $24 million in inflows on Friday and approximately $250 million over the past three days.

It's clear that the market is reacting to both political shifts and technological trends, with crypto assets positioning themselves for what could be a very interesting week ahead.

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The News Room

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Trump Taps CFTC Commissioner Caroline Pham to Lead as Acting Chair

Caroline Pham, a Republican commissioner at the CFTC renowned for spearheading digital asset initiatives, has been tapped by President Trump to serve as the agency’s acting chair. Confirmed by the CFTC's five members, Pham brings experience leading efforts such as the creation of a Digital Asset Markets subcommittee and proposing regulatory frameworks for digital assets. While the Trump administration has yet to name a permanent chair, Pham expressed gratitude for the confidence placed in her and looks forward to engaging with stakeholders to promote well-functioning markets.

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Trump-backed World Liberty Financial Swaps ~$90M in Stablecoins for ETH, LINK, Other Tokens

Trump-backed World Liberty Financial has recently swapped approximately $90 million in stablecoins for a diversified portfolio including ETH, WBTC, LINK, ENA, and TRX. Over the past three hours, the firm sent over $10 million in USDC and around $80 million in USDT to the decentralized exchange CoW Swap, mostly in structured blocks, as part of its strategy to diversify its holdings. This move follows World Liberty’s completion of a major WLFI token sale and earlier acquisitions, signaling ongoing efforts to recalibrate its crypto assets amidst a surge in investor interest and strategic investments from figures like Justin Sun.

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Vitalik Buterin Suggests Ethereum Foundation Considering Staking Its ETH Holdings

Ethereum co-founder Vitalik Buterin has revealed that the Ethereum Foundation is now considering staking its nearly $1 billion in ETH holdings to generate staking rewards, addressing previous concerns about regulatory risks and the challenges of maintaining neutrality during network hard forks. This consideration comes amid criticism of the foundation’s limited involvement in the Ethereum ecosystem, with suggestions that staking could help fund operations and grants. While staking could potentially yield around $26.2 million annually, it would not fully cover the foundation’s $134.7 million expenditures in 2023. Additionally, there are ongoing calls for leadership changes within the foundation to improve technical expertise, communication, and execution. Figures like Tim Beiko emphasize the need for a balanced approach to staking, cautioning against over-reliance on staking revenues, while proposals from industry leaders such as Joseph Lubin advocate for new leadership to invigorate the foundation’s strategic direction and enhance its role in the broader Ethereum community.

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Crypto Charts

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Disclaimer

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This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.

Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.

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Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.

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