Every week, Amdax summarizes what's happening in the crypto market for you. Want to learn more? Click through for further insights. 

This newsletter is a co-production with our partner Bitcoin Alpha.

Market Update 

Stay informed in three steps:

1. Bitcoin Dips Below $90,000 Briefly
   Bitcoin's decline started last week in response to fears of persistent inflation continued earlier this week. On Monday, the price briefly fell below $90,000 before recovering quickly. These fluctuations are typical of market volatility, with Bitcoin currently in a sideways correction following the strong rise in November 2024.
2. Positive U.S. Inflation Data
   On Tuesday, the U.S. Producer Price Index (PPI) figures were released, showing a year-over-year rate of 3.5%, better than the expected 3.8%. Similarly, Wednesday’s Core Inflation numbers came in at 3.2% annually, slightly below the anticipated 3.3%. This has eased fears of rising inflation in the market.
3. Altcoins Show Sharper Reactions
   While Bitcoin fell 17% from its December high of $108,000 to Monday’s low, altcoins experienced much steeper declines over the same period. Such sharper drops in altcoins are expected, given the significant price increases they had seen in the preceding weeks.

News Overview

Signal out of the noise:

• Bitcoin ETFs Celebrate First Anniversary with Record Growth
  It’s been a year since the launch of Bitcoin ETFs, and the success is undeniable. BlackRock’s IBIT broke records with $33 billion in assets under management in just one year, while Bitcoin itself rose 120% in value to $93,000. Four Bitcoin ETFs are now among the top 20 most successful U.S. ETF launches ever.
• South Korea Cautiously Opens the Door to Institutional Crypto Trading
  The South Korean Financial Supervisory Commission (FSC) is considering easing restrictions on institutional investors' access to the crypto market. This move is part of a broader strategy to regulate and strengthen the sector. While progress is slow, it signals a step toward a more mature and inclusive crypto market.
• More U.S. States Explore Strategic Bitcoin Reserves
  New Hampshire and North Dakota have introduced bills to add Bitcoin or other “digital assets” to their state reserves. New Hampshire’s bill uses deliberately broad language to avoid political resistance, while North Dakota's proposal already has the support of 11 sponsors. Pennsylvania led the way in November with a similar bill, calling Bitcoin a hedge against inflation and economic instability.
• Financial Advisors Embrace Crypto After Trump’s Win
  In a new survey, 56% of respondents said Donald Trump’s election victory has encouraged them to buy crypto for their clients. According to Bitwise, the percentage of advisors actively investing in crypto for clients has doubled to 22% in the past year. Notably, 99% of advisors with crypto-exposed clients plan to maintain or increase their positions.
• Circle Donates $1 Million to Trump’s Inaugural Committee
  Circle donated $1 million to Trump’s inaugural committee, which oversees his transition to becoming the 47th U.S. president. Rival Tether (USDT) already has close ties to the administration through Commerce Secretary appointee Howard Lutnick. Circle’s donation aims to establish a productive relationship. “The fact that the committee accepted our payment in USDC shows how far we’ve come,” wrote Circle CEO Jeremy Allaire.

Amdax’s Take:

The positive inflation data has eased fears of rising inflation, reflected in market prices. Negative sentiment has shifted to optimism, and last week’s market movement now appears to have been an overreaction. However, the risk of recurring inflation remains, although it currently seems less relevant.