BTC is currently trading around $99,300 and ETH around $3,100. Notable gainers in the last 24 hours are DEXE, MOVE, and NEXO. The global crypto market cap is $3.52T, down 6.1% over the last day. DeFi Total Value Locked is ~$118b and BTC dominance is around 59%.
Equity markets are lower after Chinese researchers released a new open-source LLM model DeepSeek R1 that not only performs on par or better than leading models, but also took just two months to create and for fractions of the cost of others. As a result, investors are questioning the moat, value capture, and lead of the top AI companies, and AI-related stocks are being hit particularly hard with Nvidia down 16% on the day. In addition, the Fed’s Wednesday meeting may also be causing trepidation given the potential for a hawkish tone. Indeed, while Fed Funds futures assign a 97% chance of a pause this week and pencil in just two cuts for the full year, Trump’s threat of tariffs towards Colombia over the weekend is adding uncertainty around future inflation and accordingly monetary policy. With the decline in prices, $980m of crypto liquidations have occurred over the last 24 hours. Lastly, traders will also watch several other economic releases this week, including Eurozone GDP and an ECB meeting on Thursday as well as US PCE inflation on Friday.
Notable news includes: Taiwan’s FSC unveiled plans to allow banks to issue stablecoins; Russia’s state-owned energy giant Rosseti is evaluating Bitcoin mining; Brazil banned World from offering incentives for scanning biometric data; a California federal judge overseeing the SEC’s lawsuit against Kraken threw out the exchange’s major questions doctrine defense that argued that Congress had not given the SEC oversight over crypto; a US House committee issued a formal letter to crypto firms requesting evidence of systematic debanking; Elon Musk is reportedly exploring the use of blockchain technology to track and reduce government spending; Bitpanda secured a MiCA license from the German regulator BaFin; the CEO of Coinbase stated the exchange may radically overhaul its token listing process; Andreessen Horowitz announced plans to wind down its UK operations; crypto venture firm Paradigm asked Ethereum developers to accelerate protocol upgrades; digital asset investment products saw $1.9b of inflows last week, per CoinShares; BlackRock filed for in-kind redemptions for its spot Bitcoin ETF IBIT; MicroStrategy announced a proposed preferred stock offering; MicroStrategy purchased an additional $1.1b of Bitcoin; publicly traded real estate firm Fathom adopted a Bitcoin reserve strategy; Google searches for the term “crypto” reached their highest level since November 2021; Bitcoin mining difficulty fell for the first time since September; The Metropolitan Museum of Art launched a new blockchain-powered game; crypto-friendly holiday website Travala received an unsolicited takeover offer; Pudgy Penguins-linked Ethereum L2 Abstract launched on mainnet; pump.fun set a single day revenue record with $15.5m in fees; AI agent platform Virtuals expanded to Solana; Ethereum L2 Mode launched a Bittensor subnet called Synth to build decentralized AI that predicts crypto prices; the founder of Solana DEX aggregator Jupiter announced that the platform will begin using 50% of its fees to buy back its token; and, Jupiter announced its acquisition of memecoin platform Moonshot.
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Author:
Brian Rudick, Head of Research | Twitter, Telegram, LinkedIn
Carlos Guzman, Research Analyst | Twitter, Telegram, LinkedIn
Toe Bautista, Research Analyst | Twitter, Telegram, LinkedIn
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