Coinex Research January 2025 Report: Trumpian Bitcoin Amid Alts Anxiety

HONG KONG, Feb. 10, 2025 (GLOBE NEWSWIRE) -- CoinEx Research's January 2025 report highlights a volatile month that is shaped by Political developments, institutional participation, and macroeconomic factors. bitcoin surged past $100,000 to reach a new all-time high, while altcoins struggled due to liquidity drained by Trump-related tokens. The emergence of China's DeepSeek AI model further unsettled global tech and crypto markets, leading to a valuation reset. Institutional Bitcoin adoption continued to gain traction, but a late-month pullback raised concerns about potential market consolidation.

A Volatile Start to 2025
Bitcoin opened the year at approximately $92,500 and closed near $102,000, demonstrating resilience despite a turbulent macroeconomic backdrop. The Federal Reserve maintained interest rates at 4.25%–4.50%, citing a strong labour market and persistent inflation, while the Bank of Japan raised its policy rate from 0.25% to 0.50%. The launch of the Official Trump Memecoin and Trump-linked World Liberty Finance (WLFI) captured market attention, but their liquidity absorption limited altcoin growth. Given the current conditions, Bitcoin may enter a near-term consolidation phase due to the lack of immediate bullish catalysts.

The Trump Effect: Memecoins and DeFi Expansion

Donald Trump's influence in the crypto market grew significantly ahead of his inauguration. His team launched the Official Trump Memecoin on Solana's Meteora platform, bypassing traditional SOL-based liquidity providers like Raydium. This decision helped push Solana's stablecoin supply beyond $9 billion, a 130% increase, and drove Solana's DEX trading volume to an all-time high of $258 billion, three times that of Ethereum. The memecoin's fully diluted valuation (FDV) exceeded $70 billion at its peak, surpassing leading memecoins such as SHIB, PEPE, and WIF.

The speculative rally continued with the surprise launch of the Melania Token by First Lady Melania Trump, further intensifying trading activity. However, back-to-back token launches exhausted market liquidity, leading to an eventual pullback. Meanwhile, the Trump-linked World Liberty Finance (WLFI), a DeFi project on Ethereum, successfully raised over $300 million in its presale. This signaled that the Trump crypto narrative extended beyond memecoins to include institutional-style DeFi products, blending speculative and financial elements.

DeepSeek AI's Disruptive Impact on Global Markets

China's DeepSeek AI model, launched just before the Lunar New Year, sent shockwaves through global AI and financial markets. With a training cost significantly lower than its Western counterparts-DeepSeek introduced a cost-efficient alternative powered by a Mixture of Experts (MoE) architecture. This method optimizes computational efficiency by selectively activating only the most relevant sub-networks per query.

DeepSeek's debut triggered a major sell-off in U.S. tech stocks, with Nvidia (NVDA) plummeting 17% in a single day as investors reassessed the competitive landscape. AI-themed crypto tokens also suffered heavy losses due to broader risk-off sentiment. However, rather than being a structural threat, DeepSeek's emergence represents a necessary market recalibration that could accelerate AI adoption and unlock new crypto-related opportunities.

Source: LiveBench

Institutional Bitcoin Adoption and Policy Shifts

Institutional participation in Bitcoin remained strong in January, supported by major policy developments. SEC Acting Chair Mark Uyeda established a crypto task force, and President Trump signed an executive order in his first week promoting crypto innovation, signaling a shift toward broader adoption. In Illinois, lawmakers advanced a bill to create a state Bitcoin reserve, following Arizona's move to integrate cryptocurrency into public finance.

Outside the U.S., sovereign institutions also increased their Bitcoin exposure. The Czech Central Bank approved Bitcoin for inclusion in its national reserves, while Norway's Sovereign Wealth Fund disclosed a 150% year-on-year increase in its Bitcoin holdings, now exceeding $350 million. These moves highlighted a growing confidence in Bitcoin as a legitimate store of value among government treasuries and institutional investors.

Stablecoin Inflows and Market Caution

Stablecoins continued to see strong inflows, with approximately $9.9 billion entering the market in January. This sustained a three-month trend of capital influx, supporting the bullish structure of the market. Bitcoin's new all-time highs coincided with these inflows, reinforcing the importance of stablecoin liquidity in market momentum.

However, despite the positive trend, a notable market pullback in late January suggests a cautious outlook. If stablecoin inflows slow or turn into net outflows, the market could face a period of consolidation, leading to increased volatility. Investors should closely monitor stablecoin trends as an indicator of broader market sentiment.

Market Outlook for February 2025

Looking ahead, the market's direction in February will be shaped by institutional developments, regulatory policies, and stablecoin movements. Traders and investors should remain vigilant, adjusting their strategies in response to evolving macroeconomic conditions and liquidity trends.

About CoinEx

Established in 2017, CoinEx is a global crypto exchange operating under its user-first approach by providing expert-driven features and services for 10+ million users. CoinEx offers a range of services, including spot and margin trading, futures, swaps, and automated market maker (AMM), across 200+ countries and regions.

In addition to supporting 1200+ cryptocurrencies and 1800+ trading pairs for 18 language markets, CoinEx is home to CET, the platform's native token. It is also the first crypto exchange to release proof-of-reserves to champion transparency and security for its users, ultimately providing a smooth and pleasant crypto trading experience as“Your Crypto Trading Expert.”

CoinEx Research remains committed to providing in-depth analyses and insights into the evolving cryptocurrency market, helping investors navigate through the complexities and opportunities that lie ahead.
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