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- Trump’s Token Soars as Bitcoin Nears New Highs | Bitcoin Newsletter Week 3 of 2025
Trump’s Token Soars as Bitcoin Nears New Highs | Bitcoin Newsletter Week 3 of 2025
Weekly crypto update on all things Bitcoin to keep you updated
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TL;DR
BTC is up
Bitcoin dominance is up
Trump’s Token Soars as Bitcoin Nears New Highs
MicroStrategy Bolsters Bitcoin Holdings
Bitcoin's Dominance Poised to Persist in 2025
Thailand Eyes Bitcoin ETFs and Stablecoins
Meta Shareholder Advocates Bitcoin Adoption
BlackRock Introduces Bitcoin ETF in Canada
MARA Mines Trump's Portrait onto Bitcoin Blockchain
Arkansas Seeks Crypto Mining Ban Near Military Sites
Tether Sues Swan Bitcoin Over Mining Venture Dispute
And much more!
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Bitcoin Price
Crypto is up this week, with BTC up by 9.5% and ETH up by 4.0%:
Bitcoin dominance has increased over the week, starting from 54.4% to a high of 55.12% and ending at 54.5%. 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 has once again captured market attention by crossing the $100,000 milestone, trading at $102,048 after a strong 7% weekly gain.
This rally has been driven by a combination of favorable macroeconomic factors, robust market activity, and bullish sentiment from institutional players. Notably, a $500 million influx of stablecoins into Binance after encouraging Consumer Price Index (CPI) data highlights a shift in investor confidence.
The CPI data came in lower than anticipated, fueling optimism that inflationary pressures might be easing. This development coincides with increased speculative activity, as evidenced by Binance’s BTC reserves shrinking by over 63,000 since mid-August.
The inflows largely funded Bitcoin purchases, signaling robust demand and strengthening its position above the psychological $100K level.
Technical indicators further reinforce the bullish narrative. The Taker Buy/Sell Ratio has risen to 1.116, indicating that buyers are firmly in control. Meanwhile, the Funding Rate recently reached a monthly high of 0.0247, reflecting heightened long positions and positive market sentiment.
Bitcoin’s Stock-to-Flow Ratio, a widely watched scarcity metric, has also improved, suggesting strong accumulation behavior among long-term holders. These metrics collectively paint a picture of a market that remains firmly on the offensive.
Despite the optimistic outlook, some analysts caution that a near-term correction could test the $98,900 support level. This level has served as a critical area of buying interest and is likely to provide a foundation for further upside should a pullback occur.
On the upside, Bitcoin could target $105,000 if current momentum persists, with many speculating that regulatory clarity and institutional adoption could further bolster its price.
Broader financial market trends provide additional context to Bitcoin’s rally. The Federal Reserve’s recent decision to hold interest rates steady has spurred investor appetite for risk assets, as lower borrowing costs support speculative investments.
However, concerns about a slowing economy remain. The U.S. six-month Treasury yield has declined to its lowest level since late 2022, reflecting a flight to safety among cautious investors. Meanwhile, the U.S. dollar has strengthened, underscoring global concerns about economic stability and reinforcing Bitcoin’s appeal as a hedge.
Regulatory developments are also pivotal in shaping Bitcoin’s trajectory. The repeal of SAB 121 guidance, allowing banks to classify custodial crypto holdings as off-balance-sheet items, marks a significant step toward mainstream adoption.
Similarly, easing restrictions on retirement investments could unlock substantial capital inflows, creating a more favorable environment for Bitcoin within traditional financial systems.
Another key factor is the growing recognition of Bitcoin as a strategic reserve asset. While the idea of direct government purchases remains speculative, efforts to limit the sale of existing holdings could reduce market supply and strengthen its long-term value proposition.
Institutional participation, underpinned by a more favorable regulatory environment, could accelerate this shift, solidifying Bitcoin’s status as "digital gold."
As the broader macroeconomic and regulatory landscape evolves, Bitcoin’s ability to sustain its position above $100,000 will depend on continued investor confidence and demand.
While volatility is likely to persist, the fundamental drivers supporting Bitcoin’s ascent suggest that the market may be entering a new phase of maturity and adoption.
Bitcoin (BTCUSD) Analysis:
As of January 17, 2025, Bitcoin (BTC) is trading at $101,415. In the short term, support is at $99,000, with resistance breached, suggesting potential further gains. Medium-term analysis shows strong support at $92,000, with no resistance, aligning with a bullish trend. Long-term momentum remains positive, with support at $72,000 and no resistance, indicating sustained upward movement.
Expected Trading Ranges:
Bitcoin (BTC): Support at $99,000; Resistance at $105,000.
Market Outlook:
Bitcoin maintains a robust technical outlook across all timeframes, supported by rising trends and strong investor sentiment. Short-term volatility may introduce challenges, but long-term projections favor continued upward momentum.
Investors should monitor support levels at $99,000, $92,000, and $72,000 while leveraging the lack of significant resistance for potential gains.
BTC/ETH ratio has seen an increase:
Over the past six days, the BTC to ETH rate has shown a general increase, rising from 28.96 ETH on Jan 12, 2025, to 30.92 ETH on Jan 18, 2025, reflecting an overall upward trend. Despite minor daily fluctuations, including a notable decline on Jan 15 (-2.42%), the overall movement indicates growth, with a total increase of approximately 6.8% during this period.
“We went from ~$0 to $100,000 without a Strategic Bitcoin Reserve. Just saying..”
Financial News
The Official Trump memecoin has captured significant trading volume since its launch on the Solana network, soaring to $79 before pulling back. This surge also boosted Solana (SOL) to an all-time high of $295. Bitcoin, meanwhile, approaches its record high of $108,353, with analysts predicting potential breakouts for major altcoins like XRP, ALGO, and XDC. While XRP eyes $4.84 and Solana targets $375, TRUMP memecoin shows bullish momentum but faces volatility. Expert analysis warns of profit-taking and possible pullbacks in the broader market, underscoring caution as traders anticipate upcoming moves amid heightened speculation in the cryptocurrency landscape.
MicroStrategy has added 2,530 BTC to its reserves for $243 million at an average price of $95,972 per bitcoin. This acquisition, disclosed in an SEC filing, was financed by selling 710,425 company shares. The firm now holds 450,000 BTC worth over $40 billion, acquired at an average price of $62,691 per bitcoin.
This marks the 10th consecutive week of BTC purchases, totaling $18 billion recently. MicroStrategy’s ongoing equity and debt strategy includes a $2 billion preferred stock offering to attract institutional investors. Despite market reservations, the company’s shares have surged 447% over the past year.
JPMorgan analysts predict Bitcoin's dominance over Ethereum and altcoins will continue through 2025, citing eight key drivers. Bitcoin's role in the "debasement trade" attracts inflows to spot ETFs, while Ethereum ETFs lag. MicroStrategy's ongoing $42 billion Bitcoin purchase plan and potential state or central bank reserves favor Bitcoin.
Advances in Bitcoin's Layer 2 networks challenge Ethereum's smart contract supremacy. Institutional preference for private blockchains, shifts away from token-centric strategies, and waning user activity in decentralized projects also strengthen Bitcoin's position. Despite potential regulatory clarity under the new U.S. administration, Bitcoin remains favored amid market consolidation and economic uncertainties.
Betting markets Kalshi and Polymarket show surging odds of President-elect Donald Trump establishing a U.S. Bitcoin reserve. Kalshi sets the probability at nearly 70% for 2026, while Polymarket users predict a 42% chance it happens within Trump’s first 100 days.
These figures reflect increased confidence following Trump’s July pledge at the Bitcoin 2024 conference to create a strategic Bitcoin reserve, coupled with Senator Cynthia Lummis’s proposed BITCOIN Act. Trump’s pro-crypto stance, including plans to prioritize cryptocurrency through an executive order, could accelerate Bitcoin adoption more profoundly than ETF launches, according to CoinShares research.
Semler Scientific has purchased an additional 237 Bitcoin for $23 million at an average price of $98,000 per BTC, raising its total holdings to 2,321 BTC valued at nearly $192 million. The healthcare technology company used proceeds from stock sales and cash flow to fund the purchase, increasing its "Bitcoin yield" to 99.3%.
This metric, originally popularized by MicroStrategy, reflects BTC holdings relative to outstanding shares. Semler credits Bitcoin acquisitions for reviving its financial health from "zombie" status. Corporate treasuries now hold over $54 billion in Bitcoin, with Semler ranking 13th in size among public companies.
Adoption News
Thailand's SEC is evaluating the approval of spot Bitcoin ETFs on local exchanges to position the country as a regional cryptocurrency leader. This initiative aligns with discussions on introducing stablecoins and addressing illegal activities on platforms like Polymarket.
While marking a step toward mainstream crypto adoption, the plan emphasizes balancing innovation with regulatory frameworks to ensure economic stability. The move reflects Thailand's ambition to integrate cryptocurrencies responsibly, potentially shaping its role in Asia's evolving digital asset landscape.
El Salvador's President Nayib Bukele has announced an ambitious plan to install Bitcoin nodes in every household by 2025, reinforcing the nation's commitment to cryptocurrency adoption. This initiative aims to enhance decentralization and integrate Bitcoin further into the economy, following its 2021 decision to recognize Bitcoin as legal tender.
The move underscores El Salvador's push to position itself as a leader in digital currency innovation, encouraging grassroots adoption. By equipping homes with Bitcoin nodes, the country seeks to promote a decentralized financial ecosystem, showcasing its dedication to advancing blockchain technology and economic transformation on a national scale.
BlackRock, managing $11.5 trillion in assets, has launched the iShares Bitcoin ETF (IBIT) on the CBOE Canada exchange. This Spot Bitcoin ETF offers investors a simplified route to gain Bitcoin exposure through traditional brokerage accounts, aligning its value with Bitcoin's performance.
The move represents a significant step towards mainstream crypto adoption, addressing investment and custody challenges. By leveraging its influence, BlackRock’s entry into the Bitcoin ETF market signals growing institutional confidence in cryptocurrencies and a push for broader acceptance.
Intesa Sanpaolo, Italy’s largest bank, has entered the Bitcoin market with a $1 million purchase of 11 BTC, becoming the first Italian bank to do so. CEO Carlo Messina described the move as a cautious test to address high-net-worth clients' potential demands while warning against household investments in Bitcoin due to risks.
This aligns with the bank’s broader digital assets strategy, including blockchain initiatives like a €25 million digital bond on Polygon. Occurring amid Italy’s tax reductions on digital assets, the investment reflects increasing institutional interest in Bitcoin, signaling a growing shift in traditional finance toward cryptocurrency adoption.
Ethan Peck, a shareholder and National Center for Public Policy Research (NCPPR) member, has urged Meta to allocate part of its $72 billion reserves into Bitcoin, citing inflation resistance, better returns, and alignment with innovation. He highlighted Bitcoin’s 1,265% five-year growth compared to bonds and pointed to firms like MicroStrategy and Tesla as examples.
Peck argues that Bitcoin could protect shareholder value and align with Meta's forward-thinking image. While Meta has yet to respond, institutional interest in Bitcoin is growing, with BlackRock endorsing small allocations. If adopted, Meta's move could set a precedent for other corporations.
Mining News
Bitcoin mining firm MARA Holdings etched a portrait of President-elect Donald Trump into Bitcoin block 879613, marking a historic moment ahead of his inauguration. Using a unique transaction-ordering method, MARA earned $443,148 in rewards and fees for this block.
Trump, who has pledged to back the Bitcoin industry, plans to appoint a "Crypto Czar," create a strategic Bitcoin reserve, and boost domestic mining dominance. The announcement has energized mining stocks, with MARA shares up 13% to $20.67. The block also includes the Bill of Rights and U.S. Constitution, showcasing MARA’s innovative approach to blockchain art.
Arkansas lawmakers proposed Senate Bill 60 to prohibit crypto mining within 30 miles of military facilities, citing national security and noise concerns. The bill targets sites near bases, hospitals, and arsenals but exempts operations established before December 31, 2023.
This includes a mining project near Little Rock Air Force Base by Interstate Holdings, which faces opposition despite meeting regulatory standards. Senator Ricky Hill and Cabot Mayor Ken Kincade emphasized the risks of noise pollution and security vulnerabilities. The bill aligns with federal actions restricting foreign-linked mining near sensitive locations, drawing criticism for potentially isolating Arkansas from other states' policies.
