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

Market Update 

Stay informed in three steps:

1. Trump Launches His Own Memecoin

In the early hours of Saturday, January 18, the newly elected U.S. President launched his own cryptocurrency—a meme coin named TRUMP. Within just two days, its market cap soared to $75 billion, only to drop by 60% shortly after reaching its peak. Notably, the creators of the cryptocurrency still hold 80% of the total supply.

2. Solana Hits a Record High of $295

Trump chose the Solana network to launch his memecoin, sparking significant interest from speculators. This surge in activity was reflected in Solana’s price, which climbed over 30% during the weekend to hit a new all-time high of $295.

3. Bitcoin Also Reaches a New All-Time High

After briefly dipping below $90,000 last Monday, bitcoin staged a strong recovery, culminating in a new record price of $109,000 earlier this week. While this doesn’t guarantee a continuous upward trend, the outlook for bitcoin remains positive.

News Overview

Signal out of the noise:

• Bankruptcies in the U.S. Are Rising but Remain Historically Low. Despite speculation on X about the struggles of U.S. businesses, the number of bankruptcies is still below pre-pandemic levels (2008–2019). While there has been an uptick in the past two years, the U.S. economy demonstrates resilience.

• Bitfinex Recovers ~95,000 Stolen Bitcoins from the U.S. Government. These bitcoins, stolen in a 2016 hack, were returned to Bitfinex by court order. Reports suggest Bitfinex may use the recovered bitcoins to buy Leo tokens, potentially creating additional sell pressure in the next 18 months.

• Court Approves Sale of Silk Road Bitcoins. Nearly 70,000 BTC seized by the U.S. government during its Silk Road investigation are now set for auction. This method previously allowed tech billionaires like Tim Draper to acquire bitcoin at low prices. Some speculate that a portion of the stash might be held as a strategic reserve rather than sold outright.

• Tether Moves Headquarters to El Salvador. Tether’s CEO Paolo Ardoino called El Salvador a “beacon of freedom,” praising President Bukele’s leadership. Tether has obtained licenses to operate as a crypto services provider and issue stablecoins. With Tether’s profits exceeding 25% of El Salvador’s GDP, this move could significantly impact the country’s economy while supporting Bitcoin adoption in emerging markets.

• Italian Bank Intesa Sanpaolo Buys Bitcoin as an Experiment. Italy’s largest bank purchased $1 million in BTC through its own trading desk to explore its integration into financial services. Although labeled as a trial, this marks a notable step in traditional finance’s acceptance of bitcoin. Even major banks are curious about crypto’s future.

Amdax’s Take

The U.S. president’s memecoin skyrocketed to an astounding market value in record time, while the broader crypto market declined. Speculators flocked to the new coin, selling off other holdings to join the frenzy. At the same time, the TRUMP launch attracted hundreds of thousands of new users over the weekend, potentially igniting the start of an explosive bull market phase.