Crypto News - 24 January 2025 - Trump Administration Establishes Cryptocurrency Working Group

In a significant move for the cryptocurrency industry, President Donald Trump has signed an executive order creating a dedicated working group to develop new regulations for digital assets and explore the establishment of a national cryptocurrency reserve. This initiative aims to rapidly reform U.S. crypto policy, marking a departure from the previous administration's stringent stance. The working group will include senior officials from various agencies and will focus on creating a regulatory framework for digital assets, including stablecoins. Additionally, the group will consider forming a reserve using legally seized cryptocurrencies. David Sacks has been appointed as the Special Advisor for AI and Crypto and will chair this working group. 

Bitcoin Market Update

Bitcoin had a volatile week, trading between $103,000 and $108,000, as markets reacted to shifts in ETF flows and evolving U.S. policy discussions on digital assets. While BTC saw strong demand earlier in the week, breaking past the $105K mark, it later retraced as macroeconomic concerns and minor ETF outflows pressured the price.

Bitcoin ETF flows showed mixed sentiment, with January 21 recording over $802.6 million in net inflows, led by BlackRock’s IBIT and smaller contributions from Ark and Fidelity. However, January 23 saw weaker demand, with Grayscale’s GBTC losing $49.9 million, contributing to Bitcoin’s temporary pullback. The varying inflows highlight the ongoing shift in institutional positioning, with some funds still seeing redemptions while others accumulate aggressively.

Looking ahead, traders are watching for regulatory updates and institutional sentiment shifts, as Bitcoin’s ability to sustain gains above $100K will likely depend on continued ETF demand and broader macroeconomic trends.

Ethereum Market Update

Ethereum traded in the $3,250 - $3,450 range this week, following Bitcoin’s price action but with slightly less volatility. Institutional accumulation appears to be gaining momentum, with increasing discussions around Ethereum’s potential for being included in a U.S. strategic crypto reserve and its role in DeFi and staking growth.

Ethereum ETFs had a relatively muted week, with January 21 and 22 seeing moderate inflows from Fidelity and BlackRock. However, January 23 showed slight outflows, with Grayscale’s ETHE shedding $22.3 million, briefly weighing on ETH’s price. Still, analysts believe Ethereum remains well-positioned for future inflows as investors look to diversify beyond Bitcoin.

With upcoming network upgrades and continued institutional discussions surrounding Ethereum ETFs, ETH is expected to remain a key asset to watch as 2025 progresses.

Biggest Movers of the Week

This week saw XPR Network (XPR) take the lead, surging 163.2% in the last seven days, making it one of the biggest 7 day gainers since we've been writing this newsletter. The rally was likely driven by increasing adoption and speculation surrounding upcoming ecosystem developments.

Other notable gainers include LOAN Protocol (LOAN) climbing more than 48% as interest in decentralized lending platforms continues to grow. With DeFi gaining traction again, smaller lending projects are seeing renewed investor confidence.

Metal Blockchain (METAL) and Solana (SOL) both saw double digit growth while the rest of the market appeared to stall this week, with financial analysts advising caution as the cryptocurrency market reacts to recent political developments. While the establishment of the crypto working group is seen as a positive step, the lack of immediate action on certain promises, such as the creation of a national Bitcoin reserve, has led to market fluctuations. Investors are encouraged to stay informed and exercise prudence amidst the evolving regulatory landscape. 

These coins and more are available for trading on Metal Pay.