Digital Wealth Alpha Of The Week #09

Good morning Digital Assets Investor,

This week showed us the highest fear in the markets since the 2022 bear market, is it over? Let’s dive in!

1. Week #09 Market Snapshot

The Digital Assets market, once open and inviting to all, feels now more challenging, favouring those with deeper knowledge and sharper instincts demanding a mix of expertise, persistence, and a touch of luck. While many still hold onto the hope of another explosive altseason like 2021, no one can say with certainty that it will come.

With so much dispersion, spotting true opportunities becomes increasingly difficult, heightening the risk of getting stuck in underperforming projects. Yet, despite the fear and uncertainty, seasoned investors remain confident that another altseason is on the horizon and that Bitcoin has it’s most explosive leg incoming.

2. Dips are normal, zoom out

   OG Adam Back steps-up this week with post on X aimed to appease market fears and reminding us why Bitcoin remains king. Dips during bull markets have even reached the depths of 55% (!!) in 2021. With miners hashing at record rates and spot ETFs flexing, Back’s timing feels spot-on to reassure we’re on a “business as usual” cycle. A masterclass in saying much with little, the old guard isn’t sleeping— they’re watching every block:

3. So, who’s selling??
   

   The biggest Bitcoin sellers in the recent crypto crash were newer market entrants, with over $2.16 billion in realized losses from Feb. 25-27. The hardest hit were those who bought BTC within the past week, accounting for $927 million (43%) of young cohort losses, while those holding for 3+ months saw minimal selling. On Feb. 26 alone, $1.13 billion in BTC losses were recorded—the largest single-day crash in months. This suggests long-term holders stay put while recent buyers are exiting under pressure.

4. 55% of BTC is held in self-custody

   The Bitcoin supply distribution as of Dec 31, 2024, is divided into self-custody (11.63M BTC, 55.4%), primarily held by 10-30 million individuals, and third-party custody (8.17M BTC, 38.9%), including businesses, governments, and ETFs. Exchanges hold 2.45M BTC (11.7%), with Coinbase alone managing 2.37M BTC (11.3%). The remaining 1.29M BTC (5.7%) is yet to be mined, contributing to the total 21 million BTC supply cap.

5. Texas passes BTC strategic reserve to Senate
   
   Leading the SBR pack, The Texas Strategic Bitcoin Reserve bill, known as Senate Bill 21 (SB-21), has advanced to the Senate floor after receiving unanimous approval from the Texas Senate Banking Committee with a 9-0 vote on February 27, 2025. This legislation aims to establish a state-managed investment fund focused on Bitcoin and other high-market-cap cryptocurrencies, positioning Texas as a leader in digital asset adoption.

6. The SEC’s “War On Crypto” Ends With Coinbase Case Dismissed
   
   The SEC’s voluntary dismissal of its lawsuit against Coinbase marks a turning point in its approach to crypto regulation, signaling a shift from aggressive enforcement to a more collaborative framework. This move, tied to forming a Crypto Task Force, aims to provide clearer guidelines for the industry. The decision is seen as a major win for Coinbase and the broader crypto sector, boosting confidence, potential investment, and innovation while influencing global regulatory trends.

Meme of the week:

Follow this space to receive the latest Digital Assets intelligence updates as this trends accelerate.

-DWI

Disclaimer: This content is for information and education purposes only, and it is not intended to serve as investment, financial, tax or legal advice. Do your own research before investing.