- January 19, 2025
- Category: Crypto
The crypto market continues its intense start to 2025. This week brought Trump’s official memecoin, Bitcoin’s rise above $105,000, Solana’s new all-time high, and controversial updates surrounding CBDCs in the U.S. Here’s an expanded recap of the top 7 crypto news highlights of the week.
Trump Launches Official Meme Token TRUMP
45th and 47th U.S. President Donald J. Trump launched the TRUMP meme token on the Solana blockchain, shaking up the crypto world. Within 48 hours of its release, TRUMP token reached a fully diluted valuation of $71 billion, catapulting it into the ranks of the top 15 cryptocurrencies by market capitalization.
TRUMP launch was part of a larger campaign that included Trump-themed NFTs and promo merchandise. Trading volumes for TRUMP token surpassed $24 billion, with retail investors driving much of the demand. While the project has faced skepticism from parts of the crypto community, its success underscores the enduring appeal of meme coins in retail, and the inauguration only pushed it further.
Bitcoin Surpasses $105K for the First Time
Bitcoin broke through the psychological $100,000 barrier and reached a high of $105,000 by the weekend. This surge followed an initial recovery from $90,000 at the start of the week, marking a significant turning point in Bitcoin’strajectory.
The rally was supported by strong institutional buying, positive macroeconomic trends, and growing adoption of Bitcoin as a hedge against inflation. Bitcoin’s market dominance increased to 55.5%, reaffirming its leadership in the crypto space. Additionally, the global crypto market capitalization rose to $3.72 trillion.
We may expect $110,000 as the next key resistance level, with some predicting further bullish movement if this milestone is achieved. The market also noted increased trading volumes, with institutional players like MicroStrategy and BlackRock maintaining their bullish position on Bitcoin for 2025.
Trump’s Treasury Nominee Opposes CBDC Development in the U.S.
Scott Bessent, the Treasury Secretary nominee appointed by President-elect Donald Trump, expressed his opposition regarding a Central Bank Digital Currency (CBDC) in the United States during his Senate hearing on January 16, 2025. Bessent stated he “does not see any reason” for the U.S. to adopt a CBDC. It aligns with Trump’s stance and the Republican narrative against digital currencies issued by central banks.
Republicans have argued that CBDCs could serve as a tool for governmental control, limiting financial privacy and freedom. Trump’s administration appears to be positioning the U.S. as a skeptic of the global push for CBDCs, even as other nations, such as China and the EU, advance their respective digital currency projects. This stance could have long-term implications for the U.S.’s role in the evolving global financial system, with proponents of CBDCs citing potential benefits like faster cross-border payments and better financial inclusion.
Solana Hits New All-Time High at $293
Solana (SOL) extended its performance streak, gaining over 50% this week and reaching a new all-time high of $293. The price surge coincided with the launch of the TRUMP token, which brought increased activity to the Solana blockchain.
The excitement around the coin has pushed the trading volume on decentralized exchanges within the network up to $19 billion per day. The figure is almost five times higher than the average value since the beginning of the year. At the same time, Solana has surpassed all other blockchains combined in terms of trading volume. Its dominance in the DEX segment has reached 52%.
XRP Approaches $3.4 Before Retreating
XRP saw a strong rally this week, briefly reaching $3.4, just shy of its all-time high. The token eventually corrected to $3, ending the week with a 24% gain. The surge in XRP’s price is attributed to positive developments in Ripple’s legal battle with the SEC, as well as increased adoption of Ripple’s cross-border payment solutions.
According to CoinMarketCap, XRP is the third-largest cryptocurrency by market cap, with Ethereum, at $400 billion, being its closest competitor.
On January 14, 2025, a crypto analyst using the pseudonym Ali reported that whales had purchased 1.09 billion XRP in a week.
Bitcoin Mining Difficulty Hits Record High of 111.2 T
Bitcoin’s mining difficulty reached a record-breaking 111.2 T, reflecting heightened competition among miners and growing network security. The average hashrate for the period since the previous change in the value was 804.05 EH/s. On January 17, the figure dropped to 784 EH/s.
The 5% increase in difficulty comes as more miners join the network, encouraged by Bitcoin’s rising price and long-term profitability prospects.
Also this week, TheMiningMag reported that as of December 2024, public miners’ Bitcoin reserves exceeded 92,000 BTC, an all-time high. Year-on-year, the figure has increased by ~136% from just over 39,000 BTC. MARA, Riot Platforms, and Hut 8 led the way thanks to their strategy of buying digital gold.
U.S. Authorities to Return 94,643 BTC to Bitfinex
The U.S. government has announced plans to return 94,643 BTC (approximately $9.5 billion) to Bitfinex, following the recovery of funds stolen during the infamous 2016 hack. This represents nearly 80% of the 119,754 BTC stolen during the breach.
The recovery of the stolen funds was tied to the arrest and sentencing of Ilya Lichtenstein and Heather Morgan, who pleaded guilty to laundering the stolen Bitcoin. Authorities are preparing to transfer the funds, along with corresponding assets from Bitcoin Cash, Bitcoin SV, and Bitcoin Gold hard forks, back to Bitfinex.
Here you can read the previous week’s crypto digest, and stay tuned for next week’s updates as the cryptocurrency market continues to evolve.