Trump’s crypto plans move the market 

 

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 shows recovery after sharp drop
The crypto market experienced a turbulent week. Bitcoin dropped from $96,000 to a low of just over $78,000—a 29% correction, similar to the summer of 2024. However, the price quickly rebounded, closing the week around $94,000. A new dip followed on Monday, but the price cautiously recovered. This suggests that demand remains strong despite the volatility.

2. Trump hints at strategic crypto reserve
Over the weekend, bitcoin sharply rebounded following statements from Donald Trump about a potential U.S. "crypto reserve" including BTC, ETH, XRP, SOL, and ADA. Altcoins, in particular, reacted with a sudden price spike, though some of the gains were quickly erased. Investors are now waiting to see if this will lead to concrete pro-crypto policies, with more clarity possibly coming at Friday’s first crypto summit.

3. U.S. economy heading toward contraction
The Atlanta Fed, a regional central bank monitoring economic growth, has downgraded its Q1 2025 forecast from +2.3% to -2.8%—the sharpest drop since the COVID crisis. The contraction is driven by a record trade deficit and declining investments. This fuels recession fears and could impact market sentiment.

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

News Overview

Signal from the noise:

• Trump to host first crypto summit at the White House 
  On March 7, President Trump will host the first White House Crypto Summit, bringing together top crypto industry figures and policymakers to discuss regulation and innovation. Attendees include Ripple CEO Brad Garlinghouse, Michael Saylor (Strategy), and Sergey Nazarov (Chainlink). The summit aligns with Trump’s broader pro-crypto stance, focusing on regulatory clarity, a potential strategic crypto reserve, and economic growth through blockchain adoption.
• HyperLiquid enters top 3 highest-earning DeFi protocols 
  The network, primarily operating as a decentralized exchange (DEX), generated $12.6 million in fees last week, trailing only stablecoin giants Tether and Circle. Memecoin factory Pump.Fun has been dethroned, with analysts pointing to a series of scandals as the reason. The number of successful token launches has dropped by 80% since January. In late February, Pump.Fun itself fell victim to a hack—its X account was used to promote fraudulent tokens.
• Ethereum Foundation appoints external advisory board to uphold core values 
  With the creation of the "Silviculture Society," the foundation aims to strengthen its principles around privacy, security, and censorship resistance. The advisory board consists of 15 external experts offering informal guidance in response to increasing community criticism and a recent governance shift. A recent funding commitment to Tornado Cash developer Alexey Pertsev may signal a renewed focus on open-source development. Pertsev has been granted $1.25 million for his legal defense.
• Trump’s real estate business is working on its own metaverse and NFT platform 
  DTTM Operations has filed a patent application for a Trump-affiliated virtual world, featuring digital clothing, a restaurant, and real estate and hospitality functions. The application also describes blockchain-based services such as NFT access, transaction management, and collectible assets featuring Trump’s likeness. So far, metaverse projects have struggled to gain mainstream adoption—Sandbox and Decentraland, for example, remain shadows of their 2021 hype.
• Stablecoins set to dominate the corporate payments market 
  Within five years, stablecoins will take over the cross-border corporate payments market, predicts Bitwise CIO Matt Hougan. This sector processes $44 trillion annually. Hougan points to recent developments such as Stripe’s acquisition of Bridge, PayPal’s expansion of PYUSD, and Bank of America’s plans for a dollar-backed stablecoin. He believes traditional financial institutions will struggle to compete with the speed, cost-efficiency, and ease of use that stablecoins offer. 

Amdax's take

The U.S. economy appears to be cooling down, creating uncertainty for financial markets, including crypto. While industries and trade contract, the crypto sector is gaining political momentum. A strategic crypto reserve and regulatory easing could attract capital, while economic uncertainty strengthens bitcoin’s role as an independent asset. The question is: will crypto benefit from this climate, or will it eventually follow the broader economic trend?