By Shikha Singh
Bitcoin Mempools Clear As Transaction Count Hits 11-Month Low.
Bitcoin’s network saw a sharp drop in unprocessed transactions on Saturday due to declining activity, leading to several underfilled blocks.
In January, Bitcoin’s transaction volume hit an 11-month low, continuing a three-month decline and falling over 43% from its peak in October 2024.
Daily transactions spiked before President Trump’s second-term inauguration but have since dropped to their lowest since February 2024.
With mempools nearly cleared and fees at record lows, Bitcoin mining profitability is under pressure, especially after the 2024 halving. Miners temporarily store unconfirmed Bitcoin transactions in mempools, waiting to include them in a block.
Some major mining firms are shifting toward AI and high-performance computing. Meanwhile, Bitcoin’s price remains stable at around $101,500.
Cold Weather in US Spurred Bitcoin’s First Negative Difficulty Adjustment in Four Months.
Cold weather in the U.S. led to a rise in energy prices, prompting Bitcoin’s first mining difficulty adjustment downward since September 2024.
The U.S. accounts for 36% of global Bitcoin mining, with Texas contributing nearly half of that. The Arctic blast in January increased electricity costs, making mining less profitable and reducing available hash power.
Miner revenue per terahash also declined compared to December. Some U.S. mining firms, like Riot Platforms, are diversifying into AI and high-performance computing. Luxor analysts expect mining difficulty to stabilize as temperatures return to normal.
TRUMP Price Crashes 13% Despite Donald Trump’s Pump Attempt.
The Solana-based TRUMP meme coin has faced heavy selling pressure, dropping 13% in the past 24 hours to below $20 and losing over 33% in a week. It’s now down 70% from its all-time high of $75. Trading volume surged 65% to $3.4 billion as traders dumped the coin, while open interest fell 13% to $720 million.
Donald Trump attempted to boost the coin’s value by posting “I LOVE $TRUMP!!” on Truth Social, but critics, including Anthony Scaramucci, slammed the move, noting the coin continued to drop. Following the decline, TRUMP lost its third-place ranking among meme coins to PEPE. The broader crypto market also faced declines amid Trump’s tariff policies.
Cynthia Lummis Reveals Ongoing Plan To Pass Bitcoin Reserve Bill.
Senator Cynthia Lummis reaffirmed her commitment to passing a bill that would establish a strategic Bitcoin reserve in the U.S., aiming to acquire 1 million Bitcoin over five years without raising taxes. The bill needs 60 votes in the Senate, and Lummis is working to build bipartisan support.
While the federal government debates the issue, 15 states, including Utah, Ohio, and Florida, have introduced their own Bitcoin reserve initiatives. Utah is leading the effort, with legislation advancing through a digital asset task force.
Lummis also revealed that the Trump administration is in discussions about Bitcoin policy, with key officials supporting the idea of holding Bitcoin in the national treasury. She criticized past federal restrictions on crypto businesses and vowed to ensure fair treatment for Bitcoin-related companies. Lummis remains optimistic that the bill will strengthen the U.S. dollar and financial stability.
Crypto exchange Kraken sees $1.5 bn in revenue in 2024.
Kraken reported $1.5 billion in revenue for 2024, more than doubling its previous year’s earnings, with CEO Dave Ripley confirming the firm’s profitability.
The exchange held $42.8 billion in assets, amassed 2.5 million funded accounts, and processed $665 billion in total trade volume.
Co-CEO Arjun Sethi credited Kraken’s deep liquidity and stable-to-fiat onramp dominance for its growth.
Furthermore, In January 2025, Kraken recorded $49.2 billion in spot trading volume, reinforcing its position as one of the largest U.S.-based crypto exchanges.
21Shares Files for Spot Polkadot ETF Amid Rising Altcoin ETF Applications.
21Shares has jumped on the altcoin ETF wave, filing for the first-ever spot Polkadot ETF with the SEC. With Bitcoin and Ethereum ETFs already approved, asset managers are now pushing for institutional exposure to other cryptocurrencies like Solana, XRP, Litecoin, and Dogecoin.
As more firms race to launch spot ETFs for altcoins, institutional investors could gain easier access to a wider range of digital assets. If approved, 21Shares’ Polkadot ETF would provide direct exposure to DOT, potentially boosting its adoption and market presence.
India Imposes Tax Penalties of Up to 70% on Undisclosed Crypto Gains.
The Indian government has introduced stricter tax regulations for cryptocurrency gains under Section 158B of the Income Tax Act.
This amendment, part of the Union Budget 2025, mandates the reporting of crypto earnings and imposes penalties of up to 70% for undisclosed gains.
The Income Tax Department now classifies cryptocurrencies as Virtual Digital Assets (VDAs), and entities involved in crypto transactions are required to report them.
While the existing 30% tax on crypto income and 1% TDS remain unchanged, the new rules aim to ensure tax transparency.
The government also plans to monitor crypto transactions closely through updates to Income Tax Return forms.
These measures, along with increased scrutiny of crypto exchanges, signal India’s focus on regulating digital assets and ensuring compliance.
1inch Team Invests $10 mn In Ethereum.
As reported by PANews, on-chain analyst Yu Jin revealed that the 1inch team investment fund made a notable purchase of 3,257 ETH for $10 million USDC within just 20 minutes, with the acquisition happening at an average price of approximately $3,070 per ETH.
The investment fund, which is highly active in trading 1INCH tokens, has gained a reputation for its strategic approach to Ethereum trades, consistently achieving a high success rate. This latest move further highlights their aggressive stance in the market, capitalizing on the current conditions for Ethereum.
WIF and BONK Struggle With Multi-Month Lows Amid Broader Meme Coin Downturn.
Solana Meme Coins WIF and BONK are struggling amidst a broader downturn in the meme coin market. Both have seen significant losses, with BONK down 40% and WIF dropping 52% over the past month.
Despite these losses, they remain among the largest meme coins on Solana, with BONK holding the second spot and WIF closely behind. However, both coins face continued pressure as the sector deals with a sharp decline.
Crypto AI Agents Turn Bearish as Market Cap Drops 15% In 24 Hours.
The crypto AI agents sector, once a major narrative in the crypto space, has faced a downturn since mid-January, with market caps dropping significantly. Projects like VIRTUAL and AI16Z, which had previously seen record valuations, have struggled as sentiment shifted, partly due to the influence of DeepSeek. The market cap of the sector is now down to $8 billion, with top tokens like AI16Z and VIRTUAL experiencing significant losses. Investor sentiment remains uncertain, despite the need for renewed confidence and fresh catalysts for a recovery.
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