Quick Take

• US-based entities hold 65% more bitcoin reserves than non-US entities; Crypto.com launched stocks and ETFs trading in the US; South Korea is reportedly planning to gradually allow institutional crypto trading.

• US spot bitcoin ETFs had a net inflow of US$1.2 billion last week (past five trading days). Spot ether ETFs saw a net outflow of $127 million last week.

• On the macro side, US ISM services PMI grew at a faster-than-expected rate in December, reaching 54.1 compared to 52.1 in November. US nonfarm payrolls increased by 256,000 in December, much higher than the Dow Jones consensus forecast of 155,000. Stocks plunged after the news and ten-year treasury yields spiked to the highest level since November 2023, as the market expects a lower probability of US Fed rate cuts in 2025. US FOMC minutes from the December meeting indicated concerns about upside risks to the inflation outlook and potential changes in trade and immigration policy. The latest CME FedWatch Tool showed a 3% probability of a January rate cut in the US (vs 11% last week).

• Notable updates: VeChain (VET) released details on its implementation of the VeChain Renaissance; ArbitrumDAO opened voting for the Bounded Liquidity Delay (BoLD) protocol; the Crypto.com App listed aixbt by Virtuals (AIXBT).

• Notable events in the coming week: US consumer price index and retail sales, China Q4 GDP

Weekly Market Index

Price index was down by -4.34%, while volume and volatility indices were up by +24.88% and +24.27% last week, respectively.

The broader crypto market decline coincided with strong US economic data announced last week, which lowered market expectations on the probability of US Fed rate cuts in 2025.

In addition, the US government received approval to sell 69,370 BTC (~$6.5 billion) seized from Silk Road. Elon Musk also mentioned in a comment on X that if dollar inflation is solved, there would be a potential drop in crypto prices.

All tokens in the index saw a price decrease except XRP, which was likely driven by buying activities from large traders.

Check price

Chart of the Week

The US to non-US bitcoin reserve ratio saw a surge since September 2024, from 1.25 to its peak of 1.66 on 16 December 2024, and currently sits at 1.65. The ratio measures bitcoin holdings of known US entities — including MicroStrategy, ETFs, exchanges, miners, and the US government — and compares them to those of known non-US entities. It means that the share of bitcoin reserves held by US-based entities is 65% more than non-US entities as of 6 January.

The surge coincided with the recent heightened institutional interest in bitcoin and the positive sentiment associated with Donald Trump winning the US presidential election.

Weekly Performance

BTC and ETH decreased by -3.0% and -8.9%, respectively, in the past seven days. Prices of all other selected top market capitalisation tokens decreased except XRP.

All key categories decreased in market capitalisation in the past seven days. Artificial intelligence led the decrease.

Notable Token Updates

Newly Listed Tokens in the Crypto.com App

News Highlights

Crypto.com News

• Crypto.com announced that the Stocks feature is available in the US, allowing users to manage their stocks, ETFs, and crypto through the Crypto.com App. Over 5,000 blue chip stocks and ETFs are available, and users can enjoy zero commission trading, as well as up to a 3% bonus on their first eligible securities transfer from another brokerage.

Regulation / Policy

• Two US states, North Dakota and New Hampshire, proposed legislation for a strategic digital assets reserve. The bill in New Hampshire would allow the state’s treasurer to allocate public funds to precious metals and digital assets with a market cap of over $500 billion. In North Dakota, the bill also aims to invest selected state funds in digital assets and precious metals.

• South Korea’s Financial Services Commission (FSC) is reportedly planning to gradually allow institutions access to local crypto exchanges, starting with non-profit organisations. Currently, only retail traders with verified accounts are allowed to trade crypto.

• The UK Treasury amended legislation and clarified that crypto staking is exempt from the collective investment schemes (CIS). This enables crypto firms in the UK to offer staking services without being subject to CIS regulations, and the amended legislation is expected to take effect on 31 January.

• Gelephu Mindfulness City, a Special Administrative Region (SAR) in Bhutan, announced plans to adopt crypto — including BTC, ETH and BNB — for its strategic reserves. Bhutan is already a bitcoin holder through mining and leveraging its hydroelectric power operations.

• The National Treasury and Economic Planning in Kenya drafted a proposal titled ‘National Policy on Virtual Assets and Virtual Asset Service Providers’, aiming to create a regulatory framework for a fair, competitive, and stable crypto market. The proposal is open for public feedback until 24 January.

Adoption

• Standard Chartered opened a Luxembourg entity to offer crypto custody services in the EU, in line with the Markets in Crypto Assets (MiCA) regulation, acting as the bank’s EU regulatory entry point.

• Dubai-headquartered investment conglomerate Damac Group signed a $1 billion agreement with blockchain platform Mantra to tokenise assets in the Middle East. The partnership plans to use blockchain technology to provide transparency, security, and accessibility to Damac’s assets.

• Thailand plans to pilot cryptocurrency payments in Phuket, aiming to integrate crypto into everyday transactions. The pilot will be conducted within existing legal frameworks, allowing tourists to register through a Thai exchange before using bitcoin for purchases.

• A few banks in the Philippines partnered to create PHPX, a pesos-backed stablecoin, to improve cross-border payments and financial inclusion. The stablecoin will launch on the Hedera decentralised ledger technology network, expected between May and July.

Others

• The US government received approval from the Northern District Court of California to sell 69,370 BTC (~$6.5 billion) seized from a hacker associated with the Silk Road in 2020.

Recent Research Report

• 2024 Year Review & 2025 Year Ahead: In 2024, the crypto industry witnessed more impressive milestones than in the previous year. In this report, we curate the top crypto events and trends of 2024, followed by our outlook for 2025.

• Alpha Navigator: Quest for Alpha [December 2024]: Most assets saw a decline in December, with ETH leading the drop. On a yearly basis, crypto led the rise, with BTC and ETH increasing 77% and 37%, respectively. The US, Eurozone, and Canada reduced interest rates; the UK, Australia, China, and Japan kept rates unchanged.

• Ethereum Pectra Upgrade: The Pectra upgrade aims to address Ethereum’s mainnet performance with three key objectives: fix existing network issues, improve user experience, and prepare for future upgrades.

Recent University Articles

• Ethereum Wallets: What Are They and Is One Needed?: Understand the different types of Ethereum wallets and why traders might need one to securely and efficiently navigate the Ethereum ecosystem.

• What Are Smart Contracts and Why Are They Important for Ethereum?: Smart contracts on Ethereum are self-executing programmes that enable trustless and decentralised agreements. Here’s how they work.

• What Is the Crypto.com Rewards Hub?: Learn which benefits, rewards, and rebates are available in the Crypto.com Rewards Hub, which users can enjoy simply by using the Crypto.com App.

Catalyst Calendar

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