By Kapil Rajyaguru
BTC Price Rises Above $105K After Fed Decision, Altcoins Surge, Gold at Record High.
Bitcoin rebounded above $105K after dipping below $98K post-FOMC. Ethereum defended $3K and now trades above $3,200, while Solana, Cardano, and TRX saw similar gains. Chainlink surged 6.5% to near $25, with SIU, LTC, HYPE, and ONDO posting even bigger jumps.
The total crypto market cap soared past $3.71 trillion, adding $100B in a day. Meanwhile, gold hit a record $2,799, fueling demand for gold-backed tokens like XAUT and PAXG amid fiat debasement concerns. Tokyo’s inflation uptick adds macro uncertainty, influencing global markets.
Meanwhile, today, over $10 billion worth of Bitcoin (BTC) and Ethereum (ETH) options contracts are expiring, which could cause short-term price fluctuations in the crypto market. Bitcoin’s “maximum pain” price is $98,000, meaning the price might move toward that level as many options become worthless.
Ethereum’s maximum pain price is $3,300. Traders are expecting price movements as the options settle, and some positions might be liquidated. Generally, the market sentiment is optimistic, but there’s caution due to potential volatility caused by the expiration of these contracts.
DeepSeek Shockwave: Nvidia Plunges 17%, AI Tokens Tank Amid Open-Source AI Disruption.
On January 27, 2025, Chinese AI startup DeepSeek unveiled an advanced AI model developed at a fraction of the cost of its U.S. counterparts. This announcement led to a significant market reaction, with Nvidia’s stock plunging 17%, erasing approximately $593 billion from its market capitalization—the largest single-day loss in U.S. stock market history.
The impact extended beyond Nvidia, affecting other tech stocks and AI-related cryptocurrencies. NEAR Protocol (NEAR) experienced an 11.1% drop, with its price declining from an intra-day high of $5.04 to a low of $4.41. Internet Computer (ICP) saw a 24-hour loss of 8.5% and a seven-day decline of over 18%, bringing its market cap to $4.01 billion.
Overall, the AI cryptocurrency sector decreased by 13.3% in a single day, with the combined value of its 548 tokens dropping to about $36.2 billion. As of January 31, 2025, Nvidia’s stock has shown signs of recovery, trading at $124.65, a slight increase from its post-announcement low.
NEAR is trading at $4.61, and ICP at $9.14, indicating modest rebounds. Analysts suggest that while DeepSeek’s advancements are notable, the long-term demand for AI hardware remains robust, and Nvidia’s position in the market is still strong.
Fed Chair Calls for Crypto Regulation, Warns Banks Against ‘Excess Risk Aversion’.
At the Federal Open Market Committee press conference on Jan. 29, US central bank chair Jerome Powell emphasized the need for stronger crypto regulation, noting that both Congress and the Fed are working on it. He expressed support for crypto innovation but warned against banks terminating legal crypto customers due to excessive risk aversion.
Powell also highlighted the importance of consumer protection for crypto investors, drawing comparisons to stocks and mutual funds. He refrained from commenting on President Trump, focusing instead on upcoming economic data.
Trump’s Executive Orders Spark $1.9bn Weekly Investments in Crypto: CoinShares.
President Trump’s executive order established a federal working group on digital asset regulation, halting CBDC development and revoking Biden-era crypto policies. Chaired by AI & Crypto Czar David Sacks, the group includes top regulators and industry experts. Trump also pardoned Silk Road founder Ross Ulbricht.
Bitcoin saw $1.6B in inflows, raising its YTD total to $4.4B (92% of all digital asset inflows). Ethereum gained $205M, while XRP, Solana, Chainlink, and Polkadot saw strong inflows. Global inflows hit $1.7B, led by the US, Switzerland, and Canada, while Sweden recorded $5.7M in outflows.
SEC Approves Bitwise Bitcoin & Ethereum ETF Amid Crypto ETF Boom.
The SEC has approved Bitwise’s Bitcoin and Ethereum ETF, allowing investors exposure to both assets, weighted by market cap. This follows recent approvals of similar ETFs from Hashdex and Franklin Templeton.
The ETF, launched with the NYSE, comes amid a surge in crypto-related ETF filings, driven by expectations of a friendlier regulatory stance under President Trump. Firms are now seeking approval for ETFs tracking memecoins like Dogecoin and major altcoins like Solana.
MiCA Framework Brings 4 Leading Crypto Exchanges Under Unified EU Regulations.
Four major crypto exchanges—Crypto.com, OKX, Bitpanda, and Boerse Stuttgart Digital—have obtained full MiCA licenses, enabling operations across the European Economic Area (EEA). Crypto.com and OKX received approvals in Malta, with plans to passport services across all 30 EEA states.
Bitpanda secured its license from Germany’s BaFin, following Boerse Stuttgart Digital’s earlier approval. MiCA, effective since December 30, 2024, establishes a unified regulatory framework for crypto-asset service providers, enhancing compliance and market expansion within the EU.
MicroStrategy Announces Another Billion Dollar Bitcoin Purchase.
MicroStrategy, led by Michael Saylor, has acquired another 10,107 BTC for $1.1 billion at an average price of $105,596 per BTC. This brings its total holdings to 471,107 BTC, purchased for $30.4 billion at an average of $64,511 per BTC.
Despite a market dip, the stash is now worth over $46.6 billion, reflecting a $15 billion paper gain. The firm has consistently bought BTC weekly and continues raising funds to expand its Bitcoin holdings.
Elon Musk-Led Tesla Reports Massive $600mn Bitcoin Gain in Q4, 2024.
Tesla reported a $600 million gain on its Bitcoin holdings in Q4 2024, following a new accounting rule by the Financial Accounting Standards Board (FASB). The company holds 11,509 BTC, valued at $1.19 billion.
Tesla’s Q4 report did not explicitly mention Bitcoin but noted a $600 million gain under “digital assets,” boosting their value to $1.076 billion. The new rule allows companies to report crypto holdings at market value, unlike previous rules, which only allowed recording declines in value without adjusting for price increases unless the assets were sold.
Donald Trump-Linked World Liberty Financial Accumulates $370mn in Crypto Assets.
World Liberty Financial (WLF), linked to Donald Trump, now holds $370.4M in 44 cryptocurrencies. Key assets include 59,269 ETH, 647 WBTC, and 19,399 stETH, alongside USDC, USDT, LINK, AAVE, PEPE, and MOG. Tron’s Justin Sun invested another $45M, bringing his total to $75M.
WLF plans to acquire TRX and launched WLFI tokens at $0.05 each. Despite early concerns, WLF’s token sales surged to $300M. Meanwhile, Trump’s meme coins, TRUMP and MELANIA, lost 57% and 80%, respectively, as whales dominated trading.
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