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- News on Bitcoin Week 5 of 2025
News on Bitcoin Week 5 of 2025
Weekly crypto update on all things Bitcoin to keep you updated
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TL;DR
BTC is down
Bitcoin dominance is down
Trump's Order Could Push Bitcoin to $200K
Czech Bank Proposes €7B Bitcoin Reserve
MicroStrategy’s $563M Stock Offering for Bitcoin
EV Company Nuvve Adopts Bitcoin
Ripple CEO Advocates XRP in US Digital Reserve
Arizona Senate Approves Bitcoin Reserve Bill
Bitcoin Mining Hashrate Expected to Slow
Grayscale Launches Bitcoin Miners ETF (MNRS)
DCG Launches Fortitude Mining Subsidiary
And much more!
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Bitcoin Price
Crypto is down this week, with BTC up by 2.6% and ETH down by 0.6%:
Bitcoin dominance has increased over the week, starting from 55.5% to a high of 56.57% and ending at 55.4%. Investor sentiment, regulatory changes, technological advancements, and the overall growth of the cryptocurrency sector shape Bitcoin's market dominance. Its reputation as "digital gold" also enhances its position, making it a key player in the market.
It’s going to be interesting to see whether this trend will continue in the short term, as capital in crypto tends to flow initially to BTC and then further out on the risk-curve, starting with altcoins like ETH and then into mid- or low-cap coins.
Bitcoin is trading just below its all-time high, maintaining strong momentum above $100K despite minor corrections.
Over the past week, BTC has consolidated within a tight range, fluctuating between $103,600 and $106,400, as traders anticipate a breakout toward $110K. Institutional demand remains a driving force, with U.S. Bitcoin ETFs now holding 1,163,377 BTC, or 5.87% of the total supply.
The sustained accumulation suggests long-term investor confidence, even as retail participation declines. While minor outflows occurred after BTC crossed $100K, overall sentiment remains bullish.
Futures markets indicate a balanced demand between longs and shorts, keeping perpetual funding rates near zero. This absence of excessive leverage suggests that the current rally is built on steady demand rather than speculative euphoria.
The Chicago Mercantile Exchange (CME) now commands 85% of the monthly Bitcoin futures market, reflecting increased institutional interest.
Open interest in CME’s BTC futures has reached $18.6 billion, offering a regulated gateway for hedge funds and investment banks. Meanwhile, spot Bitcoin ETFs have amassed over $120 billion in assets under management, further strengthening market liquidity and price discovery.
Technical indicators point to a crucial moment for Bitcoin’s price trajectory. BTC has maintained a 4-hour uptrend since Monday, signaling sustained bullish pressure. Analysts emphasize the importance of holding $103,600 as short-term support, as a break below this level could lead to consolidation between $100K and the all-time high.
Conversely, a push beyond $106,400 could trigger a surge past ATH, likely sparking a wave of new buying momentum. The 25% delta skew metric, which measures options market sentiment, currently sits at -5%, reflecting moderate optimism without excessive greed.
The broader macroeconomic landscape also plays a role in shaping Bitcoin’s price action. The U.S. Federal Reserve’s optimistic outlook on economic growth has provided support for risk assets, including cryptocurrencies.
However, investors remain cautious about geopolitical and economic uncertainties. U.S. President Trump’s proposed 25% tariffs on Canada, Mexico, and China could impact global trade, potentially influencing investor sentiment.
Additionally, concerns over slowing revenue growth in major tech firms, particularly Apple, have fueled uncertainty in equity markets. The rise of China’s DeepSeek AI model has also raised questions about future capital expenditures in the U.S. tech sector.
Despite these uncertainties, Bitcoin’s ability to hold key levels suggests underlying strength. Institutional investors continue to increase their exposure through ETFs, and the futures market remains stable, avoiding the leverage-driven volatility seen in previous cycles.
The recent $500 million investment in BTC by Norway’s sovereign wealth fund highlights the growing mainstream acceptance of Bitcoin as a store of value.
If Bitcoin clears its all-time high, it could enter a price discovery phase, with $110K as the next psychological target. However, failure to sustain $100K may lead to a period of sideways trading before the next leg of the bull cycle.
Traders are closely monitoring whether BTC can maintain its current uptrend, as the next few days could determine the direction of the market. The lack of excessive bullish sentiment in derivatives suggests a more sustainable rally, but macroeconomic factors could introduce unexpected volatility.
Bitcoin remains in a strong position, with institutional adoption providing a solid foundation for future growth.
Bitcoin (BTCUSD) Analysis:
As of January 31, 2025, Bitcoin (BTC) is trading at $104,002, down 1.29% for the day. The short-term outlook remains weak positive, with support at $102,000 and resistance at $106,000. A breakout from this range could determine the next move. In the medium term, Bitcoin continues in an upward trend, but negative volume balance suggests weakening momentum. The long-term trend remains strongly bullish, with support at $72,000 and no major resistance, indicating potential for further gains.
Expected Trading Ranges:
Bitcoin (BTC): Support at $102,000; Resistance at $106,000 (Short-term).
Market Outlook:
Bitcoin’s market shows mixed signals. Strong institutional inflows support bullish momentum, but macroeconomic risks and on-chain indicators suggest a potential correction below $100K. A breakout above $110K remains possible, but caution is advised as market conditions stabilize.
BTC/ETH ratio has seen an increase:
In the last 6 days, the BTC to ETH conversion rate has generally decreased. The rate dropped from 33.27 ETH per BTC on Jan 29 to 31.09 ETH on Feb 1, with fluctuations in between, including a slight increase on Jan 28. The overall trend indicates a downward shift of about 6.18% over this period, with notable decreases on Jan 31 and Feb 1.
“Bull market: ‘If you don’t love me at my higher lows, you don’t deserve me at my higher highs.”
Financial News
Trump’s January 23 crypto executive order may alter Bitcoin’s four-year boom and bust cycle, according to Bitwise’s Matt Hougan. The order, combined with changes at the SEC, allows Wall Street to move aggressively into crypto.
While Hougan believes the industry will not fully escape the four-year cycle, future pullbacks are expected to be shorter and less severe. He also noted that a more diverse range of investors has matured the market. Despite these changes, Hougan maintains a $200,000 Bitcoin price prediction by 2025, with or without a strategic Bitcoin reserve.
The Czech National Bank, led by Governor Aleš Michl, is proposing to invest up to 5% of its €146 billion reserves—approximately €7.3 billion—into Bitcoin, potentially making the Czech Republic one of the first major economies to hold cryptocurrency in its reserves.
This bold move contrasts with the European Central Bank’s stance, as ECB President Christine Lagarde has ruled out Bitcoin inclusion in EU reserves, citing concerns over liquidity, security, and criminal risks. The proposal highlights a growing divide in how nations view Bitcoin’s role in financial strategies, sparking debate over its legitimacy in mainstream finance.
Bitcoin surged to $105K following the Federal Reserve’s decision to maintain interest rates at 4.25%-4.50%, despite President Trump’s push for cuts to stimulate growth. The Fed cited progress on inflation and labor market stability as reasons for its cautious stance. Bitcoin initially experienced volatility but rallied post-announcement, reflecting its sensitivity to monetary policy.
The Fed’s resistance to political pressure highlights its focus on measured economic strategies. For crypto investors, this underscores the critical role of central bank decisions in shaping market dynamics, as Bitcoin continues to react to broader financial policy shifts.
MicroStrategy has priced its perpetual strike preferred stock at $80 per share, aiming to raise $563.4 million for future Bitcoin acquisitions. The company continues to pursue its “21/21” strategy, which involves issuing $21 billion in equity and fixed-income securities to fund Bitcoin investments.
In January 2025, MicroStrategy purchased 10,107 BTC, increasing its holdings to 471,107 BTC, valued at $49.4 billion. This move strengthens the company’s Bitcoin position and combats the corporate alternative minimum tax (CAMT) that could impose heavy taxes on unrealized gains from its digital assets.
Bitcoin's price could receive a significant boost from Nvidia's recent valuation drop and a series of upcoming crypto IPOs. Nvidia's 17% decline in stock value, triggered by competition in AI, is seen as bullish for Bitcoin as it may ease inflation, encouraging more favorable U.S. monetary policies.
Additionally, the anticipated IPOs from major crypto firms, collectively valued at over $73.9 billion, could further elevate Bitcoin prices. These IPOs create strong incentives to maintain high Bitcoin valuations, with some firms estimating a 50-100% increase in their valuations, potentially reaching $100 billion to $150 billion.
Adoption News
Nuvve Holdings Corp., a green energy company specializing in EV charging, announced plans to allocate up to 30% of its excess cash—approximately $325,425—into Bitcoin and accept it as payment for services. This move aligns with a growing trend of companies like MicroStrategy and Tesla adding Bitcoin to their balance sheets.
Nuvve’s CEO, Gregory Poilasne, highlighted Bitcoin’s potential to reduce transactional friction and expand payment options. While the initial investment is modest, the announcement boosted Nuvve’s stock by 1.42%. The company aims to balance operational needs with Bitcoin’s benefits, reflecting cautious optimism toward the volatile yet increasingly mainstream digital asset.
Ripple CEO Brad Garlinghouse is pushing for XRP’s inclusion in a proposed U.S. digital asset reserve, alongside Bitcoin, emphasizing diversification and regulatory clarity. Speaking at the CfC St. Moritz conference, he highlighted the need for a “multichain” approach.
However, Bitcoin maximalists oppose the move, citing XRP’s centralized nature as contrary to Bitcoin’s decentralized ethos. President Trump’s recent executive order calls for a “national digital asset stockpile,” potentially opening the door for multiple cryptocurrencies. Garlinghouse’s efforts, combined with XRP’s recent price surge, underscore the ongoing debate over which digital assets will shape U.S. crypto policy
Arizona's Senate Finance Committee passed Senate Bill 1025 (SB1025), known as the "Arizona Strategic Bitcoin Reserve Act," on January 27, 2025. This historic bill allows up to 10% of public funds, including state treasuries and retirement systems, to be invested in Bitcoin, with guidelines for secure storage. Co-sponsored by Senators Wendy Rogers and Jeff Weninger, the bill includes safety measures like cold and multi-signature wallets.
If passed, Arizona would become the first U.S. state to invest public funds in Bitcoin, offering a hedge against economic instability. The bill now heads to the Senate Rules Committee and, if approved, the full Senate for a vote.
Poland has overtaken El Salvador to become the fifth-largest Bitcoin ATM hub globally, with 219 active machines as of January 27. This marks a significant rise following a four-month installation spree, during which 24 new ATMs were added.
Despite El Salvador's initial progress in 2022 with 215 machines, the country has not expanded its network, while Poland continues to grow. Salvadoran officials emphasize that Bitcoin's adoption is more about usage than ATM numbers, noting that fewer ATMs are needed as digital payments and Bitcoin wallets have become more integrated into daily life.
Tesla reported a $600 million gain on its Bitcoin holdings in Q4 2024, following the adoption of a new crypto accounting rule. The company’s Bitcoin stash, valued at $1 billion, grew by nearly $589 million over the quarter, bringing its holdings to 9,720 BTC.
The rule, effective December 2023, allows companies to reflect the market value of crypto assets on their balance sheets, unlike previous standards that only allowed value increases after sales. Despite missing Wall Street's revenue and profit projections, Tesla’s total Q4 income was boosted by the Bitcoin gain.
Mining News
The Bitcoin mining hashrate is set to slow as mining difficulty decreases and demand for mining hardware drops. On January 27, 2025, Bitcoin's mining difficulty fell to 108.1 trillion, marking the first reduction of the year. This is a welcome change for mining companies, which faced high difficulty rates and reduced block subsidies in 2024.
Demand for ASICs and other mining hardware from US firms has also decreased in late 2024. Despite diversifying into AI and high-performance computing to offset lower profits, many mining companies struggled in 2024, with 20 of 25 publicly listed miners reporting year-to-date share price declines.
Grayscale has launched the Bitcoin Miners ETF (MNRS), offering investors exposure to Bitcoin mining companies and related infrastructure without direct Bitcoin investment. The ETF tracks the performance of firms in the Indxx Bitcoin Miners Index, which includes companies generating revenue primarily from BTC mining or mining-related services.
Although the fund does not directly invest in Bitcoin or derivatives, it provides indirect exposure to the digital asset sector. Grayscale highlights Bitcoin miners' integral role in the network's security and functionality, positioning them for growth as Bitcoin adoption increases. However, mining stocks struggled in late 2024 despite Bitcoin's strong performance.
