An uncertain market requires patience

Every week, Amdax summarizes what’s happening in the crypto market for you. Want to dive deeper? Click on the links in this email for more insights.

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

Market Update 

Stay informed in three steps:

1. Bitcoin Stabilizes After Turbulent Weeks

After the sharp correction that Bitcoin has been experiencing since the end of January, the price is now fluctuating slightly above $80,000. This suggests that the decline has eased, but a convincing recovery has yet to materialize. The market remains in anticipation of a clear direction.

2. Risk Appetite Declines, Impacting Crypto

The broad sell-off in traditional markets is also affecting crypto. While Bitcoin has held up better than many stocks, pressure is increasing due to declining risk appetite among investors. As long as market uncertainty persists, the likelihood of further price declines remains.

3. Macro Economy Determines the Direction for Now

The market is primarily focused on U.S. economic policy under Trump, which aims for a slower economy and a weaker dollar. This increases uncertainty among investors and could lead to prolonged corrections in both stocks and crypto. As long as the geopolitical and macroeconomic situation remains fragile, a strong upward trend for Bitcoin seems unlikely.

Would you like a more in-depth market analysis? Read the latest market update from our partner Bitcoin Alpha.

News Overview

Signal from the noise:

• The U.S. Congress has rejected Biden's controversial ‘DeFi Broker Rule.’ This rule would have required developers of so-called non-custodial software—such as wallets and protocols that allow users to manage their own crypto—to identify their users, an unfeasible requirement that faced strong opposition. With 292 votes in favor in the House and 70 in the Senate earlier, the measure has now been scrapped. Even in Washington, they understand: you can't make open-source software sign a KYC form. And that is a victory for DeFi!
• The SEC is delaying decisions on a series of new crypto ETFs. This includes ETFs for XRP, Solana, Litecoin, and Dogecoin, as well as regulations regarding staking in Ethereum ETFs and in-kind creation for Bitcoin and Ether funds. No surprise: there is still no new chair replacing Gary Gensler. The wait continues for the next round.
• Strategy Aims to Raise Another $21 Billion Through Preferred Stock Issuance. The proceeds are earmarked for “general purposes,” but with 499,096 Bitcoin on the balance sheet, everyone knows what that usually means. This new at-the-market program is separate from the previously announced 21/21 plan, under which Strategy aims to issue $21 billion in stock and $21 billion in debt securities to buy even more Bitcoin.
• Stablecoin Market Reaches Record Value of $234.8 Billion. The stablecoin market has hit a record value of $234.8 billion. This figure is more than just a datapoint—it reinforces that digital dollars have become the backbone of the crypto market. Stablecoins are no longer just a convenient tool for traders; they now serve as the silent engine behind DeFi, exchanges, and payment networks. In a world where even the U.S. is looking to strategically utilize stablecoins, their role as digital infrastructure for global money flows continues to grow rapidly.
• Solana’s Revenue Plunges 90% Since January. The reason? The memecoin hype has faded, and with it, network activity has declined. This speaks volumes about the current sentiment: investors aren’t necessarily bearish, but they are more cautious. After the FOMO of January, risk appetite has visibly diminished. For now, capital is seeking stability in Bitcoin and stablecoins. This doesn’t seem like a definitive crash, but rather a moment of consolidation.

Amdax’s Take

Bitcoin is consolidating, memecoins are losing momentum, and capital is flowing into stablecoins. Yet, at the same time, the foundation for the future is being laid. For now, this doesn’t seem like the end of the bull market, but rather a phase where speculation gives way to stability. Those who remain patient will ultimately reap the benefits.

Would you like a more in-depth review of the news this week? Then read the latest news update from our partner Bitcoin Alpha.