The cryptocurrency landscape continues to evolve rapidly, shaped by shifting market sentiment, regulatory clarity, institutional interest, and global adoption efforts. From macroeconomic pressures influencing Bitcoin’s price action to strategic moves by major players and cross-border regulatory cooperation, today’s developments highlight both the maturity and volatility of the digital asset ecosystem.
This comprehensive update covers key movements across markets, regulation, infrastructure, and corporate strategy — offering insights into where the industry stands and where it may be headed in 2025.
Market Sentiment Remains Cautious Amid Rising Rates
Recent data shows that global financial markets are adjusting to a prolonged high-interest-rate environment. The 10-year U.S. Treasury yield has surged to 4.8%, the highest since late 2023, reflecting revised expectations for Federal Reserve policy. With markets now pricing in no rate cuts until at least October, risk assets have reacted accordingly.
Bitcoin initially dipped below $90,000 amid equity futures falling 1.5%, but quickly recovered to trade above $95,000. According to QCP Capital, this resilience suggests underlying strength despite short-term headwinds.
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Notably, options activity reflects caution. Put options are concentrated around the $90,000 support level, while elevated short-term volatility and steep option spreads indicate sustained uncertainty. The Crypto Fear & Greed Index remains subdued, and traditional market volatility — as measured by the VIX at 18.68 — points to continued turbulence through January.
However, potential catalysts loom on the horizon. Upcoming PPI and CPI inflation reports could spark unexpected rallies if they signal a shift toward earlier rate cuts. Moreover, speculation is growing that President-elect Trump may issue executive orders on his first day in office addressing banking access issues for crypto firms and revising controversial accounting rules — moves that could provide a significant boost to market confidence.
SEC Chair Clarifies Stance on Bitcoin and Ethereum
In a series of interviews ahead of his upcoming departure from the U.S. Securities and Exchange Commission (SEC), Chairman Gary Gensler made several notable statements that clarified long-standing uncertainties in the crypto space.
First and foremost, Gensler confirmed: The SEC has never declared Bitcoin or Ethereum to be securities. He emphasized that neither he nor former SEC Chair Jay Clayton ever made such a determination regarding Bitcoin. Regarding Ethereum, he stated that while the SEC has not classified it as a security, he cannot affirmatively say it is not one due to the limitations of his role.
This nuanced position comes amid ongoing legal battles and congressional pressure to define digital asset classifications clearly. Gensler acknowledged that approximately 70–80% of crypto market activity revolves around Bitcoin and Ethereum, while thousands of other tokens likely fall under securities regulations requiring full disclosure.
He also dismissed the notion that the 2024 U.S. presidential election was swayed by crypto industry funding, calling it “not about crypto money,” despite significant campaign contributions from sector participants. Gensler maintained that crypto remains a highly speculative domain with persistent challenges in anti-money laundering (AML), sanctions compliance, and investor protection.
His final remarks underscored a paradox: “Bitcoin is an extremely speculative asset — yet 7 billion people want to trade it.” Comparing it to gold’s millennia-long role in finance, he suggested Bitcoin has carved out a similar cultural and economic niche in the digital era.
Deribit Draws Acquisition Interest with $5B Valuation Potential
Deribit, the leading Bitcoin and Ethereum options exchange, has attracted attention from potential buyers, with valuations estimated between $4 billion and $5 billion, according to Bloomberg.
Although the platform has not officially put itself up for sale, it is working with Financial Technology Partners LLC to evaluate strategic opportunities. While Kraken reportedly explored an acquisition, talks did not progress.
Founded in 2016 and headquartered in the Netherlands, Deribit processed nearly **$1.2 trillion in total trading volume** last year — almost double the previous year — with options nominal volume reaching $743 billion, a 99% increase.
The platform serves institutional clients through its Dubai entity (Deribit FZE) and retail users via its Panama-based operation. Its growing influence in derivatives markets makes it a prime target for consolidation in the maturing crypto exchange landscape.
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Transatlantic Push for Unified Crypto Regulation
A landmark collaboration was announced between the New York Department of Financial Services (NYDFS) and the Bank of England to enhance global coordination in digital asset regulation.
Dubbed the Transatlantic Regulatory Exchange (TRE), this initiative will launch in February with a six-month staff exchange program focused on digital payments, distributed ledger technology (DLT), and digital asset supervision.
Regulators from both institutions — representing two of the world’s most influential financial hubs — will share expertise and align oversight approaches to foster innovation while safeguarding consumers and financial stability.
NYDFS Superintendent Adrienne A. Harris stressed that strengthening ties between New York and London is essential for building resilient, interoperable financial systems in an increasingly digital world.
This marks a significant step toward harmonizing regulatory frameworks across jurisdictions — a critical need as cross-border crypto activity grows.
Global Authorities Crack Down on Illicit Crypto Flows
China’s Supreme People’s Procuratorate has issued a directive to intensify efforts against using virtual currencies for illegal cross-border capital transfers. The announcement came during a national prosecutors’ meeting on January 13.
Authorities pledged to maintain high-pressure campaigns against financial crimes including money laundering, illegal fundraising, loan fraud, financial statement fraud, and market manipulation.
The move reinforces China’s strict stance on private crypto use while highlighting growing international concern over cryptocurrency’s role in circumventing capital controls and sanction regimes.
Institutional Adoption Gathers Momentum
Several developments signal deepening institutional engagement with Bitcoin:
- Genius Group, an AI-powered education company listed on NYSE American (GNS), announced a $33 million stock offering exclusively dedicated to purchasing Bitcoin. If combined with planned debt financing of up to $20 million, the firm aims to grow its BTC reserves from $35 million to **$86 million**.
- Intesa Sanpaolo, Italy’s largest banking group, confirmed it purchased 11 BTC through its proprietary trading desk — though CEO Carlo Messina described it as “an experiment” with negligible impact relative to its $100 billion investment portfolio. He emphasized readiness to serve high-net-worth clients interested in digital assets.
- Dfns, a Paris-based crypto wallet infrastructure startup, raised $16 million in a round led by Abu Dhabi’s sovereign wealth fund ADQ. Backers include Wintermute, Motive Partners, and Motier Ventures. Dfns provides secure key management solutions used by Fidelity International and Zodia Custody.
These moves reflect growing confidence in crypto infrastructure and long-term value propositions among traditional finance players.
TON Foundation Eyes U.S. Expansion Under New Leadership
The Open Network (TON) Foundation has appointed Manuel Stotz, founder of Kingsway Capital Partners Ltd., as its new president. This leadership change signals a strategic pivot toward expanding in the United States.
Stotz succeeds Steve Yun and will lead efforts to position TON as a major player in the U.S. market, leveraging anticipated regulatory tailwinds under the incoming Trump administration. Trump has pledged to make America a global hub for digital assets — a stark contrast to the Biden administration’s enforcement-heavy approach.
With close ties to Telegram Messenger LLP, TON aims to scale its blockchain ecosystem globally, particularly in regions favorable to innovation-driven regulation.
USDC Outpaces USDT in 2024 Growth Despite Market Leadership Gap
Circle’s USDC saw impressive momentum in 2024, with circulation growing 78% year-over-year — outpacing Tether’s USDT, which grew by approximately 50%.
According to Circle’s 2024 USDC Economic Report, released January 14, this growth was driven by increasing regulatory clarity, improved blockchain scalability, and strong emphasis on trust and transparency.
USDC ended 2024 with a market cap of **$43.9 billion**, up from $24.4 billion at the start of the year — though still below its 2022 peak of $55.9 billion.
Meanwhile, USDT expanded from $91.7 billion to **$137.5 billion**, setting new all-time highs and maintaining dominance with over two-thirds of the stablecoin market share.
Over longer timeframes:
- Since 2020: USDT up 552%, USDC up 1135%
- Since 2021: USDT up 74%, USDC up just 8.8%
While USDC leads in relative growth rates recently, USDT maintains unparalleled scale and liquidity — making both essential components of the global crypto economy.
FAQ: Your Questions Answered
Q: Is Bitcoin considered a security by the SEC?
A: No. SEC Chair Gary Gensler explicitly stated that the SEC has never classified Bitcoin as a security.
Q: Why is Deribit valuable enough to attract billion-dollar bids?
A: Deribit dominates crypto options trading with $743 billion in annual nominal volume and nearly $1.2 trillion total volume — making it a critical derivatives infrastructure player.
Q: Did crypto donations decide the 2024 U.S. election?
A: According to Gensler, no — while the industry contributed funds, the outcome was not determined by crypto interests.
Q: Can individuals in El Salvador run Bitcoin nodes at home?
A: Not yet officially — but President Bukele plans to install one Bitcoin node per household, signaling deepening national adoption.
Q: Which stablecoin grew faster in 2024 — USDC or USDT?
A: USDC grew faster relatively (+78% vs +50%), but USDT added more value absolutely ($45.8B vs $19.5B).
Q: Is institutional demand for crypto increasing?
A: Yes — evidenced by investments from firms like Genius Group, Intesa Sanpaolo’s pilot purchase, and Dfns’ funding from major financial institutions.
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