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ARP's Crypto Digest
ARP Digital
January 20, 2025
General Digital Asset Market View:
Source: Source: Farside, ARP Digital Research Team Q1’25
Bitcoin ETF flows have been strong over the past week, with total inflows reaching $1.8629 billion, reflecting solid institutional confidence. Blackrock’s IBIT ETF led with $375.9 million, followed by Fidelity’s FBTC ($326.3 million) and Bitwise ($208.1 million), highlighting a preference for established managers. IBIT’s recovery since January 14th has further boosted optimism, even as Ark reported no inflows. While Bitcoin’s price briefly surged to $106K before correcting to $103K, the robust ETF inflows amid volatility underscore continued institutional trust in Bitcoin as a secure investment.
Macro:
It is a quiet week in the US with no major data reports of note and the Fed’s external communication blackout kicking in on Monday. As such, markets will be in limbo ahead of the January 29 FOMC meeting. Elsewhere, the latest UK jobs report will be in focus alongside the run of provisional S&P PMIs and Japanese nationwide inflation data. From a central bank POV, Friday’s BoJ decision will be the key focus.
More Crypto:
Source: RealDonaldTrump
On January 18, 2025, Donald Trump announced the launch of Trump Memes (TRUMP), a memecoin on the Solana blockchain, via his Truth Social and X (Twitter) accounts. Inspired by his “Fight, Fight, Fight” message, TRUMP has a total supply of 1 billion tokens, with 200 million initially circulating. 80% of remaining tokens will be allocated to creators, unlocking over 24 months. Within an hour of launch, TRUMP reached a $3.5 billion market cap, with trading volume near $420 million.
As of January 19th, Trump coin reached a high of 15.15B market cap.
Source: Galaxy Research
In Q4 2024, crypto VC investment rebounded to the highest level in 2 years.
Venture capitalists invested $3.5bn (+46% QoQ) into crypto and blockchain-focused startups across 416 deals (-13% QoQ)
Through all of 2024, venture capitalists invested $11.5bn into crypto and blockchain startups across 2153 deals.
Source: Nydig
Bitcoin’s correlations with major asset classes, including US equities, gold, and the US dollar index, declined during the quarter, largely influenced by the election. Its correlation with US equities, in particular, retreated from levels last seen during the 2023 “correlation crisis.” As Bitcoin becomes increasingly owned by traditional market investors, shifts in correlations are to be expected. However, its appeal as a non-sovereign store of value remains strong, especially in the current geopolitical climate, as it operates independently of the macroeconomic forces that drive markets like US equities.
Stablecoins:
Source: Kaiko Research
Since the U.S. elections, Tether’s USDT experienced strong net buying, with its dominance among stablecoins increasing from 72% in November to 84% in December. However, this trend may shift after Binance’s December announcement of a strategic partnership with Circle. Beyond zero-fee promotions, the partnership aims to boost USDC adoption, with Binance planning to use USDC for its treasury.
What Happened This Week:
Nasdaq has filed a 19B-4 document with the US SEC to launch an ETF based on Canary Litecoin.
Tether has announced the launch of $USDT0, a cross-chain-focused stablecoin.
The U.S. government stated in court documents that 94,000 $BTC stolen from the 2016 Bitfinex hack should be returned to the crypto exchange as in-kind restitution.
Phantom Wallet Raises $150 Million At $3 Billion Valuation.
Donald Trump Launches $TRUMP Meme Coin — Token Exceeds $12 Billion Market Cap
What to Look Out For:
Trump has indicated that he is open to the idea of a strategic reserve in cryptocurrencies founded in the U.S., such as $SOL $USDC and $XRP. On the news, $XRP touched $3.4 and set a new ATH.
Trump reportedly plans to elevate cryptocurrencies to a policy priority and issue an executive order that reflects input from industry officials within his administration.
Michael Saylor hints that MicroStrategy is buying more $BTC. Expect to see news of MicroStrategy buying more Bitcoin in the coming days.
Jupiter has released checkers for its 700M $JUP ($576M) airdrop. This is almost 50% of the current circulating supply and will be airdropped on January 31st.
What we enjoyed reading and listening to:
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