Jan 2024 Market Commentary: Bitcoin’s Surge & Global Crypto Trends
Author: Hillroute Date: January 30, 2025
Executive Summary:
Bitcoin’s Surge & Institutional Growth
- BTC hit a new ATH of $109,036, up 129% YTD, outperforming gold (32%) and S&P 500 (28%).
- Institutional adoption surges; Tether buys $780M BTC, spot Bitcoin ETFs attract $121B.
- Bitcoin miners outperform BTC, with U.S.-listed firms controlling 30% of network hashrate.
Altcoin Market Trends
- Ethereum struggles, hitting a 4-year low vs. BTC (0.03 BTC/ETH) despite a 40% annual gain.
- Solana thrives, with $12B TVL, SOL hitting $272, and memecoins dominating retail speculation.
- XRP surges to $3.4, reclaiming the #3 crypto spot amid whale accumulation and ETF speculation.
Regulatory & Macro Developments
- Russia adopts Bitcoin for foreign trade, while Bhutan, Hong Kong, and Brazil explore BTC reserves.
- US regulatory clarity improves, with a crypto-friendly SEC under new leadership.
- Europe’s MiCA regulations hit Tether, forcing USDT delistings on major exchanges.
- Singapore solidifies its role as Asia’s crypto hub with increased licensing and institutional backing.
Global Trends & Institutional Shifts
- Trump’s win drives Bitcoin to new highs, with 65% more BTC held by US institutions.
- Sub-Saharan Africa, Nigeria, and India lead crypto adoption, while VC remains in developed nations.
- Bitcoin education in El Salvador boosts the country’s global crypto standing.
- Treasury yields rise as the Fed holds rates steady amid inflation concerns.
Crypto Market & Trading Movements
- DEX volume hits record $425.4B, driven by volatility and DeFi growth.
- BTC volatility at 6-month high, with options open interest rising 44,000 BTC.
- TRUMP token lists on Binance & Coinbase, reaching a $7.6B market cap.
Institutional & Technological Innovation
- DeepSeek R1 AI launch triggers $1T Nasdaq selloff, impacting AI-related crypto tokens.
- $1B real estate tokenization deal in UAE disrupts property ownership.
- New BTC-focused ETFs launch, integrating Bitcoin into traditional finance.
Market Dynamics: Bitcoin and Altcoins
Bitcoin’s Exceptional Growth and New ATH
Over the past decade, Bitcoin has outperformed traditional assets with a staggering 26,931% return, turning a $100 investment in 2014 into over $26,900. In the short term, Bitcoin continues to lead with a YTD increase of 129%, surpassing gold (32%) and the S&P 500 (28%). On January 20, Bitcoin reached a new all-time high of $109,036, reflecting its resilience and dominance. Bitcoin’s dominance currently stands at 59.4%.

Bitcoin Miners Perform Strong in 2025
Bitcoin miners are outperforming BTC itself in early 2025, with mining companies tracking better profitability despite a slight decline in overall mining returns. JPMorgan reports that 12 out of 14 mining companies it monitors are outperforming the cryptocurrency. The overall mining network has seen a 2% increase in hashrate this month, contributing to a 51% rise year-over-year. U.S.-listed miners are now responsible for 30% of the network’s total computing power, a sign of robust growth and further institutional interest in mining assets.
XRP and Solana Shine While Ethereum Stumbles
The broader memecoin market, particularly Solana-based tokens, remains a dominant force in 2024, with nearly 31% of all investor interest in cryptocurrencies focused on these speculative memecoins. Ethereum (ETH) hit a 4-year low against Bitcoin at 0.03 BTC per ETH, despite a 40% annual gain, lagging behind Bitcoin’s 160% return. Rising competition from Solana, especially after the Trump-affiliated memecoin launch on Solana’s blockchain, adds pressure, although institutional interest in ETH remains strong due to its ETF status. XRP surged to a 7-year high of $3.4, driven by whale accumulation and ETF speculation. Its market cap climbed to $193B, reclaiming the third spot in crypto rankings. In January, Solana’s total value locked (TVL) exceeded $12B, with SOL soaring to $272, fueled by speculation of a Solana ETF.
Regulatory Landscape
Global Interest in Bitcoin as a Reserve Asset Grows
Several countries are exploring Bitcoin as part of their strategic reserves. Hong Kong’s legislator Wu Jiexhuang has proposed incorporating Bitcoin into the region’s national reserves to strengthen financial stability. Bhutan is also making strides by integrating Bitcoin, Ethereum, and Binance Coin into its reserves, alongside its eco-friendly BTC holdings. The country aims to lead in blockchain adoption, with discussions planned for 2025 on the broader use of digital assets in official reserves. Countries like the US and Brazil are also considering Bitcoin as part of their reserve strategies, while Russia views it as a potential tool to bypass sanctions. El Salvador remains the only country with official Bitcoin reserves, but this growing global interest highlights Bitcoin’s emerging role in national financial strategies.
Russia’s Adoption of Bitcoin in Foreign Trade
Russia’s Finance Minister Anton Siluanov confirmed the country’s legal position to use Bitcoin and digital financial assets (DFAs) in foreign trade. This follows legislation passed in September 2024, allowing DFAs as alternatives to the US dollar in international transactions. Russia has already begun using these digital assets in trade and is expanding their use, particularly for cross-border transactions, following the legalization of Bitcoin mining earlier this year.
Singapore’s Emergence as Asia’s Crypto Hub
Singapore is solidifying its position as Asia’s leading crypto hub with a growing number of crypto licenses granted in 2024. The Monetary Authority of Singapore (MAS) issued 13 Major Payment Institution Licenses to exchanges, reinforcing the country’s reputation as a blockchain innovation leader. With 1,600 blockchain patents and 81 crypto exchanges, Singapore is attracting Web3 companies, making it a major player in the global digital assets space. Hong Kong, while growing, trails Singapore in these areas despite recent ETF approvals for Bitcoin and Ether.

US Optimism for Regulatory Clarity in 2025
Crypto executives in the US are optimistic for regulatory clarity in 2025 under new leadership. Changes in the presidential administration and Congress could favor digital assets. The overturn of the Chevron doctrine may encourage more independent decision-making in SEC cases, impacting ongoing legal battles and shaping the crypto regulatory landscape. The nomination of Paul Atkins as SEC chair signals a shift toward a more crypto-friendly approach, prioritizing clarity and business-friendly regulations.
Tether Faces MiCA Regulation Challenges in Europe
Tether (USDT) is facing significant regulatory challenges in the European Union under the Markets in Crypto-Assets Regulation (MiCA), which mandates strict licensing and transparency standards for stablecoins. As Tether has not yet secured the necessary approvals, major EU exchanges, including Crypto.com, will delist USDT and nine other tokens by Jan 31, with users having until Mar 31 to convert assets to MiCA-compliant options. Affected tokens include Wrapped Bitcoin (WBTC), Dai (DAI), and Pax Dollar (PAX). While Tether’s dominance in global markets remains intact, alternatives like USDC and FDUSD are expected to rise. Traders are advised to diversify stablecoin holdings and explore decentralized platforms to mitigate liquidity risks.
Global Trends
US Market and Crypto Surge Post-Trump Win, Institutions Dominate Bitcoin
Following Donald Trump’s win, markets responded with optimism—US equity futures rose, and the dollar weakened as Trump refrained from imposing tariffs on China. His memo to review trade policies suggested a shift away from protectionism, driving confidence in both traditional markets and Bitcoin, which reached new highs. A Bitwise survey showed that 56% of US wealth advisers are now more likely to invest in crypto, anticipating a more crypto-friendly environment under Trump. Meanwhile, US entities, led by institutional investors like MicroStrategy, have significantly increased their Bitcoin holdings, now holding 65% more BTC than offshore entities. This reflects growing institutional confidence, with over $121 billion flowing into spot Bitcoin ETFs.
Cryptocurrency Investment Should Favor Emerging Markets
Crypto investment should increasingly target emerging markets, where adoption and utility are driving tangible change. Regions like Sub-Saharan Africa lead in crypto adoption, with countries like Nigeria and India using blockchain to solve real-world issues like financial inclusion and governance inefficiencies. Despite this, venture capital is still heavily concentrated in developed nations, underlining the need for a shift in focus toward these high-growth regions where crypto is a tool for economic recovery, not just speculation.
El Salvador’s Secret Weapon? Its Extensive Bitcoin Education Program
El Salvador’s Bitcoin education program is positioning the country as a leader in the crypto space. The program, which includes high school courses and developer boot camps, is fostering a skilled workforce that drives the country’s Bitcoin-focused initiatives. With President Bukele’s vision, El Salvador is set to continue its Bitcoin strategy, creating new opportunities and attracting global attention.
Treasury Yields Surge as Fed Maintains Cautious Stance on Rates
U.S. Treasury yields surged to their highest levels since April, with the 10-year yield briefly topping 4.809% and the 30-year yield rising to 5.005%. The Federal Reserve kept interest rates steady at 4.25%-4.50% following its January meeting, maintaining its stance after three consecutive cuts in late 2024. Policymakers warned that inflation remains ‘somewhat elevated,’ signaling a cautious approach to future rate adjustments. Fed Chair Jerome Powell emphasized that the central bank is in no hurry to cut rates, citing the economy’s continued strength.

Crypto Trading & Market Movements
Record Surge in January Decentralized Exchange (DEX) Volume
January saw decentralized exchange (DEX) volume hit a record $425.4B, up from $323.9 B in December. Raydium led the surge with $116B, followed by Uniswap at $93.9B and PancakeSwap at $71.1B. Centralized exchange (CEX) volume, reaching $2.15T, with Binance dominating at $738.3B. This surge across both DEX and CEX platforms is driven by increased market volatility, growing trust in decentralized finance (DeFi), and enhanced trading tools.

Bitcoin Volatility Hits Six-Month High, Sparking Speculation
Bitcoin’s volatility reached its highest level in six months, with both realized and implied volatility indexes seeing significant increases. The price of Bitcoin soared to an all-time high of $109,000, leading to a sharp rise in options open interest, up by 44,000 BTC. This surge reflects a short-term bullish sentiment, fueled by speculation around President-elect Trump’s potential Bitcoin reserve announcement, alongside his historical influence on the market through social media.
Tether’s $780 Million Bitcoin Reserve Move Signals Institutional Growth
Tether made its largest Bitcoin acquisition in nine months, transferring 8,404.5 BTC, worth $780M, into its reserves, bringing its total Bitcoin holdings to 83,759 BTC (valued at $7.75 B). This acquisition is part of Tether’s strategy to allocate 15% of its net operating profits to Bitcoin purchases. It also highlights the growing trend of corporate Bitcoin treasuries, with Tether now positioned as the third-largest corporate Bitcoin holder behind MicroStrategy and Block.one.
Coinbase and Binance to List TRUMP Token After Its Successful Debut
Coinbase and Binance has list the TRUMP token, the official memecoin of the 47th U.S. president, following its strong debut. Despite initial rejections from exchanges like ByBit and OKX due to concerns about its political nature, the token has garnered significant interest, with a market cap exceeding $7.6B and a trading volume of $15B. However, the token has faced criticism due to its tokenomics, with 80% of the supply controlled by CIC Digital, a firm tied to the Trump Organization. Meanwhile, the first Trump-themed token, MAGA, has seen a sharp decline in value but continues to be actively traded.
Corporate Developments and Technological Innovations
DeepSeek R1 Launch Sparks $1T Nasdaq Selloff
DeepSeek’s R1 AI model launch on Jan 27, 2025, triggered a major shake-up in the tech industry, challenging the dominance of American tech giants and wiping over $1T from the Nasdaq Composite Index. Major firms like NVIDIA, Alphabet, and Microsoft faced significant losses, with NVIDIA’s valuation dropping by $600 billion in a single day. Despite using less advanced hardware due to U.S. export restrictions, DeepSeek’s AI rivals top models like ChatGPT at a fraction of the cost. The launch also impacted crypto markets, causing declines in AI-related tokens like Render (-11%) and The Graph (-15%). However, analysts suggest its open-source, cost-efficient model could drive long-term innovation in AI-powered blockchain applications.
New Bitcoin ETFs Signal Stronger Integration of Crypto into Traditional Finance
Strive Asset Management and Bitwise have both filed for Bitcoin-related ETFs, highlighting the increasing integration of Bitcoin into traditional financial products. Strive’s Bitcoin Bond ETF will invest primarily in bonds from companies heavily involved in Bitcoin, such as MicroStrategy, allocating 80% of its exposure to Bitcoin bonds. In contrast, Bitwise’s Bitcoin Standard Corporations ETF will focus on companies holding at least 1,000 BTC in their corporate treasuries, with a market cap of $100M or more. These ETFs reflect a broader trend of Bitcoin becoming a key asset in the corporate world, offering investors new opportunities to gain exposure to Bitcoin through traditional investment structures.
Real Estate Tokenization Takes a Leap with $1B Blockchain Deal in UAE
MANTRA, a blockchain platform, has partnered with DAMAC Group, a UAE-based property firm, to tokenize $1B worth of real estate assets. This collaboration will allow investors to digitally own portions of real estate, hotels, and data centers, leveraging blockchain technology for transparency and fractionalized ownership. Specific properties to be tokenized will be announced soon, with investments expected to begin in early 2025. This initiative marks a significant step in the UAE’s growing embrace of blockchain adoption in the real estate sector.