As President Donald Trump prepares to take office, the cryptocurrency community anticipates a more favorable regulatory environment. Key appointments, including David Sacks as White House AI and Crypto Czar and Paul Atkins to lead the SEC, signal a potential shift towards pro-crypto policies. Plans to establish a U.S. Bitcoin strategic reserve and end debanking practices are among the initiatives expected to boost the industry.

Bitcoin ETFs experienced notable fluctuations, with massive outflows early in the week followed by a strong rebound. The week started with significant redemptions, over $490m worth of outflows across the first two days in fact. However, inflows surged in the latter half of the week, with $755.1 million in net positive flows on January 15 and $626.1 million on January 16, suggesting renewed confidence among institutional investors. The resurgence in demand highlights Bitcoin’s continued appeal as an institutional-grade asset.

Ethereum ETFs also faced a mixed week of flows, starting with outflows on January 13. Grayscale’s ETHE led the losses, with a $37.8 million outflow on January 13, contributing to downward price pressure. However, inflows began to recover midweek, with $166.6 million in net inflows on January 16, showing that institutional investors are starting to regain confidence in Ethereum’s long-term value proposition. With key integrations and ecosystem developments ahead, ETH remains a strong contender in the evolving crypto landscape.

Coinbase Introduces Bitcoin-Backed Loans

In other news Coinbase has launched a new service allowing users to secure loans against their Bitcoin holdings. Borrowers can access up to $100,000 in USD Coin (USDC) without a credit check, using their Bitcoin as collateral. This offering provides liquidity without requiring users to sell their assets, though fluctuations in Bitcoin's price may affect collateral value.

The decentralized LOAN Protocol at lending.metalx.com has offered users the ability to borrow $100,000 or more since 2021, using a variety of assets as collateral, including Bitcoin, Litecoin, Ripple XRP, Dogecoin, and more.

Legal Actions Target Crypto Platforms

A class-action lawsuit has been filed against Pump.Fun, a platform for launching and trading meme-inspired cryptocurrencies on the Solana blockchain. The suit alleges that Pump.Fun operated as an unregistered securities issuer and misled investors, facilitating "pump-and-dump" schemes. This legal action highlights the ongoing debate over the regulation of cryptocurrencies as securities. 

Jamie Dimon Criticizes Bitcoin's Use in Illicit Activities

JPMorgan Chase CEO Jamie Dimon has reiterated his skepticism towards Bitcoin, stating that it is the preferred currency for "sex traffickers, money launderers, [and] ransomware" perpetrators. While acknowledging the legitimacy of blockchain technology and stablecoins, Dimon expressed concerns over Bitcoin's lack of intrinsic value and its association with criminal activities. 

Market Forecasts and Trends for 2025

Analysts predict significant developments in the cryptocurrency market for 2025. The approval of Bitcoin and Ethereum spot ETFs in 2024 has paved the way for smaller-cap cryptocurrencies to gain traction as investment-grade assets. Additionally, the integration of digital assets into traditional investment portfolios is expected to continue, reflecting the growing acceptance of cryptocurrencies in mainstream finance. 

Bitcoin Recovery Efforts Dismissed

In a notable legal development, a UK judge has dismissed the claim of James Howells, who sought to recover a hard drive containing approximately £600 million worth of Bitcoin from a Newport landfill. The court ruled that Howells' claim had "no realistic prospect of succeeding," bringing an end to his long-standing efforts to retrieve the lost cryptocurrency.

Biggest Gainers of the Week

This week saw impressive gains across multiple altcoins, with XRP leading the pack, surging 41.8% over the past seven days. Following closely behind, Hedera (HBAR) climbed 35.8%. Litecoin (LTC) also posted strong gains, rising 30.3%, as network activity picked up ahead of potential regulatory developments and increased adoption. Dogecoin (DOGE) continues its upward trend, gaining 26.4%, likely fueled by the ongoing memecoin resurgence and speculation around potential integrations with major platforms. Meanwhile, Solana (SOL) added 17.8%.

With momentum building across multiple sectors of the crypto space, it's an exciting time to stay engaged in the market. Remember, you can buy crypto instantly using your debit or credit card on Metal Pay, making it easier than ever to participate in the action!