Diversitas

1. Market Overview

A few days ago, President Trump announced his vision of transforming the United States into a “manufacturing superpower” and the “world capital of Artificial Intelligence and Crypto.” This stance is especially noteworthy given the growing role of crypto as a native currency in AI-driven applications.

Trump has already signed the first executive orders focused on the crypto industry, suggesting a tangible follow-through on his promises. There are also rumors that they will implement a 0% capital gains tax on US crypto coins. If this materializes, things could get wild very fast🤔

2. ETF Flows

As anticipated, inflows are ramping up post-Trump inauguration. Even with only four trading days last week, the numbers are impressive:

$BTC ETFs Weekly Flow: +$1,75 billion🤑

$ETH ETFs Weekly Flow: +$139 million💰

P.S. Bitcoin ETFs bought $4.2 BILLION worth of Bitcoin in the last 7 trading days🤯

3. On-Chain Data

• Coinbase Premium: Negative🤔
• Exchange Reserves: Reached new lows✅
• MVRV Ratio: 2.41 (Cycle Top Above 3.7)✅
• Net Unrealized Profit/Loss (NUPL): 58 (Cycle Top Above 75)✅
• Open Interest: Moderate✅
• Funding Rates: Low✅
• CMC Fear and Greed Index: 55 (Neutral)✅

One of Bitcoin’s leading on-chain indicators is the number of wallets holding 10–100 BTC or 100–1,000 BTC. Notably, the latter group just broke an all-time high at 15,777 wallets, signaling growing confidence among key stakeholders—another bullish sign for 2025🚀

In parallel, altcoin discussions are gaining traction on social media, with social volume hitting a six-week peak. Historically, such spikes have preceded price rallies in the following weeks👀

4. Top Weekly News

Nasdaq files to change BlackRock's Bitcoin ETF to allow for in-kind redemptions

https://www.theblock.co/post/337016/nasdaq-files-to-change-blackrocks-bitcoin-etf-to-allow-for-in-kind-redemptions

President Trump says US will be 'world capital of artificial intelligence and crypto' in Davos speech

https://www.theblock.co/post/336653/president-trump-reiterates-us-will-be-worlds-crypto-capital-in-davos-speech

President Trump tasks working group to evaluate creation of national crypto reserve

https://www.theblock.co/post/335703/trump-strategic-reserve

Bitcoin makes muted move after Trump's new crypto executive order lacks concrete strategic reserve plan

https://www.theblock.co/post/336833/bitcoin-makes-muted-move-after-trumps-new-crypto-executive-order-lacks-concrete-strategic-reserve-plan

Elon Musk's DOGE is considering blockchain adoption in gov't efficiency push

https://www.theblock.co/post/337044/elon-musks-doge-is-considering-blockchain-adoption-in-govt-efficiency-push-bloomberg

5. Summary

Although the long-term outlook appears bullish, the market is currently experiencing turbulence tied to Chinese DeepSeek AI. Its DeepSeek-R1 reportedly offers OpenAI-o1-level intelligence at 90% lower costs, sparking concerns about its potential impact on Nvidia and the broader AI sector—a major component of the S&P 500 and Nasdaq. This has led to a decline in futures, spilling over into crypto markets, despite no direct impact on digital assets themselves.

From our perspective, this short-term panic could, in the worst-case scenario (a larger stock market drop), trigger money printing that would ultimately fuel our rocket. Our long-term projections remain unchanged, so we don’t plan to alter any strategy changes at the moment. We will wait a little longer to see how things play out but for now it seems like the market is somewhat overreacting🤦‍♂️

P.S.

Overnight Reaction to DeepSeek:

• Arm, $ARM: -5.5%
• Nvidia, $NVDA: -5.3%
• Broadcom, $AVGO: -4.9%
• Super Micro, $SMCI: -4.6%
• Taiwan Semi, $TSM: -4.5%
• Micron, $MU: -4.3%
• Qualcomm, $QCOM: -2.8%
• AMD, $AMD: -2.5%
• Intel, $INTC: -2.0%

US markets are on track to erase over $1 trillion of market cap in Monday's session.