Anticipation builds for ‘crypto President’

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Bitcoin is trading above US$100,000 once again as lighter inflation data and anticipation of Donald Trump’s inauguration pushed the broader crypto market higher.

Bitcoin and Ethereum were up 11.78% and 0.33% respectively over the seven days to 19 January. Bitcoin’s market capitalisation is above US$2 trillion. The global crypto market cap is at ~US$3.65 trillion, while bitcoin’s market dominance is sitting at 57.2%.

  Price High Low Change from previous week
BTC (in US$) $105,468 $105,842 $89,941 11.78%
ETH (in US$) $3,280 $3,521 $2,953 0.33%
         

Source: CoinMarketCap. As at 19 Jan 2025. Past performance is not indicative of future performance. Performance is shown in US dollars and does not take into account any USD/AUD currency movements.

Source: Glassnode. Past performance is not indicative of future performance.

Crypto news we’re watching

Trump pump

Donald Trump’s presidential inauguration on 20 January comes with high hopes for the crypto community. Spot bitcoin ETFs brought in US$1.3 billion of inflows in the last two trading days of the week, while crypto stocks such as Microstrategy and Coinbase surged higher.

Bloomberg reported last Thursday that Trump plans an executive order making crypto a ‘national priority’. Trump could create a crypto advisory council for policy recommendations giving the sector a voice within his administration1. Any announcement from the incoming administration next week could send bitcoin to new all-time highs.

Corporate bitcoin adoption continues

Over the last few weeks, four listed public companies announced bitcoin purchasing and another seven companies announced a strategy but have yet to purchase.

Companies that purchased and added BTC to their balance sheet are Nasdaq-listed Ming Shing (MSW) which purchased 500 BTC, NYSE-listed KULR Technology Group (KULR) adding 430.61 BTC to its treasury, NYSE-listed Genius Group (GNS) which purchased 372 BTC for its bitcoin treasury, and TSX-listed Matador adding BTC as a foundational treasury asset.

Companies that have announced a Bitcoin strategy but have not yet started any acquisition are Acurx Pharmaceuticals (ACXP), Hoth Therapeutics (HOTH), LQR House (YHC), Enlivex (ENLV), Sunation Energy (SUNE), SOS Limited (SOS), and reAlpha Tech Corp (AIRE)2.

CRYP company spotlight

Crypto stocks rally

Crypto-related equities surged on Friday in the US, led by Microstrategy (up 8.07%), Coinbase (up 4.92%) and Marathon Digital (up 8.85%). There was a noticeable increase of trading across the crypto sector, which has been reignited by Trump’s plans to sign an executive order prioritising crypto. If the incoming administration delivers on its crypto pledges, crypto-related stocks are expected to perform well in 20253.

The companies listed above are all held in the Betashares Crypto Innovators ETF (ASX: CRYP)4. CRYP provides exposure to global companies at the forefront of the crypto economy.

Fear & Greed Index

The Crypto Fear & Greed Index is an indicator from Alternative.me that aims at capturing investor sentiment in a single number by incorporating data from multiple sources. The index ranges from 0 to 100, where 0 denotes ‘extreme fear’, and therefore times of exaggerated negative investor sentiment. Conversely, 100 means ‘extreme gree’ and is an indicator of maximum FOMO. 

According to data from Alternative.me, the index has ticked over to extreme greed with the BTC price over $100K as of 18 January.

Source: Glassnode. Past performance is not indicative of future performance. 

Bitcoin (BTC): Liveliness

This metric is defined as the ratio of the sum of Coin Days Destroyed and the sum of all coin days ever created. Liveliness increases as long term holders liquidate positions and decreases while they accumulate to HODL. A reading between 0 and 1 gives us insight into the behaviour of investors.

According to data from Glassnode, as of 18 January the reading is at 0.61, as investors sell out close to all-time highs. 

Source: Glassnode.  Past performance is not indicative of future performance. 

Altcoin news

Ripple XRP surpassed US$3 for the first time since 2018, but stopped just shy of its $3.40 all-time high, as it continued to close the gap between it and the largest altcoin, Ethereum.

Google trends highlighted that worldwide Google searches for XRP overtook bitcoin on 15 January. According to one analyst, an increase of 58,000 new investors and demand for the XRP token helped push the price higher5.

With an incoming administration taking a more relaxed stance on crypto regulation, XRP could see several spot ETFs listed over it and finally see its lawsuit with the SEC conclude. XRP is up over 26.4% in the last seven days and up over 41% in the 30 days to 19 January.

Investing in crypto-assets or companies servicing crypto-asset markets should be considered very high risk. Exposure to crypto assets involves substantially higher risk than traditional investments due to their speculative nature and the very high volatility of crypto-asset markets.
Investing in crypto assets or crypto-focused companies is not suitable for all investors and should only be considered by investors who (i) fully understand their features and risks or after consulting a professional financial adviser, and (ii) who have a very high tolerance for risk and the capacity to absorb a rapid loss of some or all of their investment. Any investment in crypto assets or crypto-focused companies should only be considered as a very small component of an investor’s overall portfolio.

References:

1. https://www.cnbc.com/2025/01/17/crypto-market-today.html

2. https://www.coindesk.com/markets/2025/01/15/corporate-bitcoin-adoption-forges-ahead-as-more-listed-firms-ride-the-wave

3. https://www.dimsumdaily.hk/crypto-stocks-rally-ahead-of-trumps-return-as-crypto-president/#google_vignette

4. As at 17 Jan 2025. No assurance is given that this company will remain in the portfolio or will be a profitable investment.

5. https://cointelegraph.com/news/xrp-rally-to-3-holds-overtaking-bitcoin-searches-on-google-trends

Off the Chain is published every second Tuesday. It provides the latest news on bitcoin and the rest of the crypto market, along with analysis and insights into the world of crypto.

It provides general information only and is not a recommendation to invest in any crypto asset, crypto-focused company or investment product. 

Photo of Justin Arzadon

Written By

Justin Arzadon
Director, Adviser Services & Head of Digital Assets.
Director, Adviser Services & Head of Digital Assets. C4 Certified Bitcoin Professional (CBP) and Blockchain Council Certified Bitcoin Expert™ with over 18 years’ experience in the ETF market. Passionate about the future of money. Read more from Justin.
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