Digital Wealth Alpha Of The Week #06

Good morning,

Crypto just went through one of its toughest weeks in recent years, let’s dive in:

1. Week #06 Market Snapshot

Following the tariff war announcements, the cryptocurrency market experienced notable fluctuations. Bitcoin's price briefly dropped to just above $91,000 on February 2 before swiftly recovering. Despite the downturn, Bitcoin's annual volatility has recently reached a record low.

Altcoins also saw sharp declines followed by rebounds. Ethereum (ETH) plunged nearly 25%, hitting a low of approximately $2,451 before rising again to about $2,880.

Data from Coinglass indicates that approximately $2 billion in liquidations occurred over the weekend, marking one of the most significant liquidation events since 2021.

2. VanEck predicts Solana (SOL) will hit $520 by the end of 2025

Driven by anticipated growth within the smart contract platform (SCP) market and the positive correlation between the U.S. M2 money supply and crypto market capitalization, Solana (SOL) is projected to reach $520 by 2025.  With the M2 projected to reach $22.3 trillion, the SCP market cap is estimated at $1.1 trillion. Solana's expected 15% market share (a $250 billion market cap) and approximately 486 million floating SOL tokens support this $520 price target.

3. Ondo Finance announces “Ondo Chain”

Ondo Chain is a new Layer 1 blockchain designed to bring institutional-grade real-world assets (RWAs) onchain, combining public blockchains' openness with permissioned chains' compliance and security. It addresses key barriers like DeFi incompatibility, cross-chain liquidity fragmentation, and high transaction fees. It enables RWA staking for network security, permissioned validators to prevent malicious activity, and scalable data feeds through enshrined oracles.

With features like native omnichain messaging and support for tokenized securities, Ondo Chain aims to create a seamless, secure, and inclusive financial ecosystem, bridging the gap between TradFi and DeFi. Ondo Finance remains the only provider of tokenized Treasuries offering 24/7 redemptions at no cost to investors.

4. Trump Media and Technology Group jumps on the Bitcoin ETF bandwagon

Donald Trump’s media company, Trump Media and Technology Group (TMTG), plans to launch three exchange-traded funds (ETFs) under its Truth.Fi brand, including Truth.Fi Bitcoin Plus ETF, Truth.Fi Made in America ETF and Truth.Fi Energy Independence ETF.

The company aims to provide investors with alternatives to what it describes as "woke funds" and debanking challenges, planning to launch the products later this year, subject to SEC approval. The Truth.Fi funds will begin with an investment of up to $250 million

While the Bitcoin ETF is unlikely to match the success of established funds like BlackRock’s iShares Bitcoin Trust, its launch underscores the growing mainstream acceptance of cryptocurrency and Trump’s broader push to integrate digital assets into traditional financial markets. (CD)

5. Czech President signs bill to waive capital gains tax on Bitcoin holdings of over three years:

The Czech Republic has officially enacted a law exempting bitcoin holdings of more than three years from capital gains tax, following President Petr Pavel's approval. The bill, unanimously passed by parliament in December, also applies to cryptocurrencies purchased before 2025 and eliminates reporting requirements for transactions under 100,000 koruna (~$4,100). This move aligns with the EU’s MiCA regulatory framework and reflects broader efforts to foster crypto-friendly policies.

Additionally, the Czech National Bank is considering diversifying its reserves by allocating up to 5% of its €140 billion reserves to bitcoin, signaling growing institutional interest. These reforms, alongside calls for balanced crypto regulations by figures like former Prime Minister Andrej Babiš, highlight the country’s progressive stance on digital assets.

Meme of the week:

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-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.