April 04, 2025

Bitcoin Hits Record High on Optimism Around Pro-Crypto Policies:

Bitcoin surged to an all-time high of USD 109,225 in January 2025, driven primarily by investor optimism following President Trump's inauguration and expectations of favorable U.S. crypto policies. The rally was shortlived
as macroeconomic concerns, including potential trade tariffs and tightening monetary policies, triggering a subsequent 25% correction from the peak. By the end of the quarter, Bitcoin stabilized around
USD 83,733, highlighting continued volatility amid ongoing market uncertainties. [1]


Macro Headwinds Dampen Crypto Market Momentum:

Persistently tight monetary policies from major central banks, including limited rate cuts from the U.S. Federal Reserve, created challenging conditions for crypto and other risk assets. Additionally, heightened
geopolitical tensions, notably renewed threats of trade tariffs under President Trump, contributed to investor caution. Consequently, many investors have shifted to a cautious stance pending clearer economic
signals. [2]


U.S. Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile:

On March 6, 2025, President Trump signed an executive order creating a Strategic Bitcoin Reserve to manage government-held Bitcoin, primarily sourced from Treasury confiscations, alongside a separate U.S.
Digital Asset Stockpile for other digital assets obtained through forfeitures. This strategic initiative aims to position the U.S. as a global leader in digital asset innovation and institutional adoption. The administration
also appointed a dedicated "crypto czar" and hosted the inaugural White House crypto summit, emphasizing its commitment to integrating digital finance into national economic strategy. [3]


Regulatory Thaw and Policy Clarity:

U.S. regulatory pressure eased dramatically as the SEC settled high-profile lawsuits with Coinbase, Kraken, and Ripple under a more crypto-friendly administration, aligning with similar progressive policies from
Hong Kong and the EU's MiCA framework. These global moves signal a critical shift towards regulatory clarity, fostering crypto innovation and institutional participation. [4]


Crypto ETFs Boom Beyond Bitcoin:

Following the successful launch of Bitcoin ETFs, 2025 saw numerous ETF filings for other cryptocurrencies, including XRP, Solana, Litecoin, and Dogecoin, reflecting surging institutional demand. These filings
underscore the mainstreaming of digital assets, marking a new era of broader access through regulated financial products. [5]


Record Bybit Hack Sparks Security Alarm:

Bybit suffered a historic USD 1.5 billion hack attributed to North Korea’s Lazarus Group, leading to an immediate liquidity crisis and massive user withdrawals totaling USD 5.5 billion. This unprecedented breach highlights
ongoing vulnerabilities in crypto custody and smart contract security, renewing calls industry-wide for stronger risk management measures. [4]


Source: [1] Crypto.news [2] investors.com [3] The White House [4] The Block [5] Reuters
 

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