Market Insights: Apr 2025 | Week1
Wavebridge Research/
Despite Bitcoin’s price dip and miner losses, institutional interest and strategic accumulation continue to grow, led by government moves and major investors
US President Donald Trump issued an executive order to establish a strategic reserve of bitcoin and a digital asset repository, directing the Secretary of the Treasury to report by 5 April 2025 on the status of the government's digital assets and bitcoin holdings, as well as a plan for stockpiling. At the same time, the Bitcoin network unveiled a proposal for a hard fork to switch to quantum-resistant encryption to protect against quantum computer attacks, and proposed a protocol to force existing wallets to migrate to the new secure wallet. Meanwhile, Bitcoin's hashrate hit an all-time high, demonstrating the network's strong growth, and Block.one CEO Jack Dorsey announced work to support Bitcoin payments on Square terminals and BitKey. Mara Holdings mined 829 bitcoins in March, a 17% month-over-month increase in mining volume, while the world's largest bitcoin holder, Strategy, invested $1.92 billion to buy an additional 20,048 bitcoins, bringing its total holdings to 528,185. Japanese-listed Metaplanet also bought 160 more bitcoins, bringing its total holdings to 4206, while US Senator Tommy Tuberville plans to introduce legislation to add bitcoin investment options to retirement plans. However, while the market capitalisation of US-listed miners fell by around 25% in a month, wiping out around $6 billion, and bitcoin had its worst quarterly performance in 2025, with the price falling 11.82% during the first quarter, the whales are still buying and the number of large holding addresses is growing.
Altcoin markets remain weak and Bitcoin-dominated, though select networks like Tron and Ripple show growth amid cautious investor sentiment
The market weakness continues as the altcoin market cap dips below $1 trillion, with CoinMarketCap's Altcoin Seasonal Index remaining at 16, indicating that the market is still very much Bitcoin-centric. XRP saw renewed fears of a protracted lawsuit after it was confirmed that the US Securities and Exchange Commission has asked Ripple Labs to submit additional financial data, while Tron received positive feedback after TRC-20-based USDT transfers exceeded 1.8 million per day for the seventh consecutive day, indicating increased demand for its network and the announcement of investments to expand its ecosystem. Ethereum, on the other hand, has seen its market share drop to 8%, the lowest in the past five years, and its relative strength index remains oversold, with weak signs of recovery. To overcome this downturn, Ethereum developers are planning to upgrade Pectra on 7 May, with a total of 11 improvements to enhance network efficiency and security. Meanwhile, Ripple's RLUSD stablecoin saw its market capitalisation increase by 21% week-on-week and 122% for the month to $294 million, thanks to the integration of cross-border payment solutions. Solana-based memecoin platform PumpFun launched a new financial solution called PumpFi, which offers digital asset instalment purchases. Amidst this, experts are advising caution when buying altcoins, suggesting that Q2 2025 could be a good time to accumulate altcoins.
U.S. crypto regulation is evolving amid legal shifts, market expansion, and growing political controversy
The US Securities and Exchange Commission (SEC) has deregulated stablecoins by announcing that they are not considered securities, but SEC Commissioner Caroline Crenshaw has pushed back, citing legal errors and reduced market risk. In the meantime, Illinois is dropping its lawsuit against Coinbase's staking service, the fourth state to do so, following Kentucky, Vermont, and South Carolina. Coinbase is also increasing its presence in the derivatives market, announcing on 9 May that it will launch the first 24-hour Bitcoin and Ethereum futures products in the US. In addition, stablecoin USDC issuer Circle has begun the process for an initial public offering (IPO), naming JPMorgan Chase and Citi as joint bookrunners, with plans to file disclosure documents in late April. Meanwhile, Fidelity Investments is expanding access to crypto investing with the launch of a retirement plan product that allows direct investment in Bitcoin, Ethereum, and Litecoin. Cryptocurrency regulation and political controversy continues to be a hot topic, with Democratic lawmakers calling for an investigation into the possible influence of former President Donald Trump and his family on SEC policy towards crypto companies.
Global initiatives in stablecoin regulation and blockchain adoption are driving the growth and integration of digital asset markets
Hong Kong is set to launch its first regulated stablecoin later this year, potentially influencing changes in digital asset regulation in major countries such as the US and Japan. In Brazil, an appeals court allowed the seizure of debtors' digital assets to pay creditors, recognising cryptocurrencies as a means of payment and store of value, and the country's largest bank, Itau Unibanco, is considering issuing a stablecoin. In Japan, Mitsui Sumitomo Financial Group is working with Ava Labs and Fireblocks to design a stablecoin issuance and distribution structure, while Taiwan's Financial Supervisory Commission plans to make stablecoin issuance and trading subject to government approval. Meanwhile, DTCC, the world's largest securities settlement system operator, is launching a collateral management platform using blockchain technology to address inefficiencies in the traditional financial system, and BlackRock has received authorisation from the UK Financial Conduct Authority to operate a European Bitcoin ETF product. These global moves are accelerating the regulation and commercialisation of digital assets, fuelling the development and consolidation of cryptocurrency markets.