Governments Buy, but Investors Hesitate

 

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:

Trump Crowns Bitcoin as a Strategic Asset

The U.S. will establish a Strategic Bitcoin Reserve, as President Trump decided this week via executive order. All bitcoin held by the government will be retained, and ministries are instructed to acquire additional bitcoin in a budget-neutral manner. With this, the White House explicitly recognizes bitcoin as “digital gold” with strategic advantages. The news didn’t move the price; possibly, the decision was already priced in.

Correction Eases, but the Real Test Awaits

Bitcoin’s price recovered last week from $83,000 to $88,000 before plunging again to well below $80,000. Pressure from stock markets and geopolitical unrest are underlying factors. A convincing recovery will only follow with a breakout above $94,000. Until then, the market remains uncertain, with a risk of further weakness.

Uncertainty Forces Investors to Be Patient

U.S. economic policy—characterized by import tariffs, budget cuts, and unpredictable rhetoric—heightens uncertainty in financial markets. This makes investors cautious. Strategic decisions like Trump’s confirm bitcoin as a serious asset, but only when markets stabilize can investors translate that confidence into new purchases.

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

News Overview

Signal from the noise:

• The Netherlands is the most crypto-obsessed country in the world. A new study from LegalBison reveals that we search for terms like “bitcoin,” “dogecoin,” and “cryptocurrency” an average of 5,593 times per 100,000 inhabitants per month. This puts us ahead of even Switzerland and Liechtenstein. Notably, all the top five countries are in Europe. The U.S.? It doesn’t even make the top ten.
• Tether is moving toward transparency with a full financial audit. This task has been assigned to the new CFO, Simon McWilliams. Critics have been pushing for this step for years. With more than 20 years of experience in financial management, McWilliams is expected to help restore trust in the largest stablecoin issuer. So far, Tether has only published quarterly attestations of its reserves, but a true audit—independent and comprehensive—is still missing. This step seems aimed at finally making that change.
• The IMF puts an end to El Salvador’s bitcoin strategy. The IMF is granting El Salvador $1.4 billion, on the condition that President Bukele severely restricts his flagship project. The mandatory acceptance of bitcoin is being abolished immediately. This is a clear warning shot from the IMF: “Those who want our support must stay away from bitcoin.” On X, Bukele states that El Salvador will continue buying bitcoin daily. Whether this will put him at odds with the IMF remains to be seen.
• Ripple buys a new million-dollar megaphone. The company has founded the National Cryptocurrency Association (NCA). This brand-new lobbying group is tasked with convincing the public of crypto’s benefits—and Ripple is footing the bill. Ripple is investing a whopping $50 million into the organization. Not everyone is convinced of Ripple’s intentions. In the past, it has repeatedly tried to undermine bitcoin through paid campaigns, directly or indirectly.

Amdax’s Take

Despite the sharp decline, the broader upward trend of this bull market remains intact. Sharp corrections are part of a rising market and are often temporary panic reactions. The outflows from U.S. bitcoin funds indicate that institutional investors are currently in wait-and-see mode, but once the market regains direction, sentiment can shift quickly. At the same time, we see a positive shift in U.S. policy: the SEC is dropping lawsuits, and regulatory pressure is easing. This supports the structural growth of the sector, with adoption and institutional involvement continuing to rise.