Anticipation builds for 'crypto President'
Justin Arzadon
6 minutes reading time
- Digital assets
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Higher-than-expected CPI data caused Bitcoin to slip initially, but it has since mildly rallied. Bitcoin and the broader crypto market finished higher over the past week.
Bitcoin and Ethereum were a touch higher at 0.49% and 1.73% respectively over the seven days to 16 February 2025, with Bitcoin’s market capitalisation, as of writing, at around US$1.93 trillion. The global crypto market capitalisation is sitting at around US$3.24 trillion, while Bitcoin’s market dominance is up to 59.8%.
| Price | High | Low | Change from previous week | |
| BTC (in US$) | $97,487 | $98,662 | $94,780 | 0.49% |
| ETH (in US$) | $2,708 | $2,783 | $2,537 | 1.73% |
Source: CoinMarketCap. As at 16 February 2025. Past performance is not indicative of future performance. Performance is shown in US dollars and does not take into account any USD/AUD currency movements.
Source: Glassnode. Past performance is not indicative of future performance.
Crypto news we’re watching
White House crypto overhaul
Digital asset regulation is in the works as the Crypto Council, chaired by White House crypto czar David Sacks, has been coordinating with top officials and major moves are impending.
On 14 February, on the social media platform X, David Sacks said: “The inter-agency Working Group on Digital Assets is working well together to implement the President’s agenda.”
The remarks were made in response to a report by Fox Business journalist Eleanor Terrett, looking into concerns on crypto policy and the number of regulatory bodies involved.
“Surprisingly, there’s a lot of coordination happening. These groups are actually talking to and working with each other1,” Terrett reported.
Abu Dhabi discloses stake in Bitcoin
The Abu Dhabi Sovereign Wealth Fund has disclosed a new US$436.9 million stake in Bitcoin. The fund is gaining exposure through Blackrock’s iShares Bitcoin ETF (NASDAQ: IBIT). Its stake will be held by the Mubadala Investment Company and was disclosed last week through a 13F filing with the US Securities and Exchange Commission2.
CRYP company spotlight
Coinbase benefits from strong momentum
Analysts have raised their price target for crypto exchange Coinbase, after it smashed expectations for its Q4 earnings. Soaring crypto trading volumes drove higher-than-expected revenues in the last three months of 2024. 1Q25 results could also beat estimates, according to a J.P. Morgan report.
In the past 12 months, Coinbase shares have risen by approximately 112%. J.P. Morgan expects huge growth for the company over the next five years.
“The regulatory and legislative backdrop is now supportive for the next chapter of crypto,” J.P. Morgan analysts said3.
Coinbase is currently held in the Betashares Crypto Innovators ETF (ASX: CRYP)4. CRYP provides exposure to global companies at the forefront of the crypto economy5.
Bitcoin (BTC): Supply in Profit/Loss
The following chart presents the BTC volume of supply in profit and loss, compared to the circulating supply. Classification of supply profitability is a feature based on the price stamping of UTXOs [unspent transaction outputs]. This is the process of assigning a price at the time a UTXO was created, which is assumed to be the acquisition price of the coin.
It can be seen that profit supply and loss supply are inversely correlated, as each coin must be in one category or the other. These supply regions will change as spot prices move above or below the price stamp of each UTXO in the UTXO set.
According to Glassnode data, as at 15 February 2025 there is a circulating supply of approximately 19,824,855 bitcoin, with 17,450,948 sitting in profit and 2,373,907 sitting in a loss position. With the majority of coins in a profitable position, investor sentiment is still relatively bullish in spite of the rangebound trading we’ve seen over the last three months.
Source: Glassnode. Past performance is not indicative of future performance.
Bitcoin (BTC): Mining Difficulty
This metric, denoted in raw hashes, shows the current estimated number of hashes required to mine a block. Mining difficulty regulates the rate of new blocks added to the blockchain and maintains the network’s security.
According to Glassnode data, as of 15 February 2025, bitcoin mining difficulty is once again at all-time highs. This would imply the network is the most secure it has ever been.
Source: Glassnode. Past performance is not indicative of future performance.
Cardano ADA had a strong week and was one of the best performers among the Top 20 altcoins. It is up over 11% in the last seven days and over 29% over the 12 months to 16 February 2025. One piece of news helping to push the price higher was news that Grayscale has filed for a Cardano ETF. The proposed ETF would list on the NYSE6.
Investing in crypto-assets or companies servicing crypto-asset markets should be considered very high risk. Exposure to crypto assets involves substantially higher risk than traditional investments due to their speculative nature and the very high volatility of crypto-asset markets.
Investing in crypto assets or crypto-focused companies is not suitable for all investors and should only be considered by investors who (i) fully understand their features and risks or after consulting a professional financial adviser, and (ii) who have a very high tolerance for risk and the capacity to absorb a rapid loss of some or all of their investment. Any investment in crypto assets or crypto-focused companies should only be considered as a very small component of an investor’s overall portfolio.
Investing in crypto assets or crypto-focused companies is not suitable for all investors and should only be considered by investors who (i) fully understand their features and risks or after consulting a professional financial adviser, and (ii) who have a very high tolerance for risk and the capacity to absorb a rapid loss of some or all of their investment. Any investment in crypto assets or crypto-focused companies should only be considered as a very small component of an investor’s overall portfolio.
References:
1. https://news.bitcoin.com/white-houses-crypto-council-gears-up-for-major-moves-crypto-czar-david-sacks-signals-big-changes/
2. https://bitcoinist.com/abu-dhabi-sovereign-discloses-bitcoin-etf-holdings/
3. https://www.coindesk.com/markets/2025/02/14/coinbase-benefits-from-strong-near-term-momentum-2025-is-off-to-a-good-start-jmp
4. As at 14 February 2025. No assurance is given that this company will remain in the portfolio or will be a profitable investment.
5. CRYP will not invest in crypto assets directly, and will not track price movements of any crypto assets. For more information on risks and other features of CRYP, please see the Product Disclosure Statement and Target Market Determination (TMD), available at www.betashares.com.au.
6. https://cointelegraph.com/news/grayscale-files-cardano-trust-spot-etf
Off the Chain is published every second Tuesday. It provides the latest news on bitcoin and the rest of the crypto market, along with analysis and insights into the world of crypto.
It provides general information only and is not a recommendation to invest in any crypto asset, crypto-focused company or investment product.
