Digital Wealth Alpha Of The Week #13

Good morning, Digital Assets Investor,

The market closed the week on a classic bull-trap leading to fear and uncertainty, meanwhile catalysts are building up but not strong enough to send the market higher yet. What’s the outlook? Let’s dive in:

1. Week #13 Market Snapshot

The Digital Assets landscape continues to hit home-runs with Bitcoin corporate strategies adding new legacy members to the club and stablecoins hitting record high issuance and clearing regulatory hurdles positioning USD backed stablecoins on the first line for a global take-over. Nonetheless macro volatility is NOT over, Bitcoin is becoming more aligned with the flow of traditional risk assets but still sitting on the higher end of the risk spectrum. This week the market closed trapping the bulls on a market capitulation driven by increased global uncertainty and aggressive US auto tariffs war. It's unclear when the broader market and investor positioning will turn around, but for now we think we’re still facing a fair amount of downside risk before turning to the upside. Top analysts forecast the first week of April for a Global M2 bottoming before starting to head upward with Bitcoin following the same path. Remaining cautiously and patiently bullish.

2. JPMorgan forecasts massive growth of yield-bearing stablecoins
   

   JPMorgan analysts predict that yield-bearing stablecoins could grow from 6% to 50% of the stablecoin market cap, driven by their appeal as interest-generating assets similar to money market funds. These stablecoins, including tokenized Treasurys, have surged in adoption, growing from $4 billion to over $13 billion since November 2024. Major crypto platforms now accept them as collateral, and their use in DeFi is expanding. (The Block)

3. EU banks fail to meet rising crypto investor demand
   

   A Bitpanda survey reveals that European banks may be underestimating the demand for cryptocurrency services. Only 19% offer crypto products despite 40% of business investors holding digital assets. While 80% of institutions acknowledge crypto’s importance, internal barriers like a lack of resources and knowledge hinder adoption. With 27% of retail investors preferring to invest through banks, institutions risk losing revenue to crypto-native firms. As regulatory clarity improves under MiCA, more banks are considering crypto expansion, with 18% planning to offer related services soon. (Cointelegraph)

4. Full draft of the “STABLE Act of 2025” released, TLDR here:
   

   The newly released draft of the STABLE Act of 2025 outlines strict regulations for stablecoins, aiming to enhance oversight and financial stability.