Market Overview - Bitcoin experienced significant volatility, dropping to nearly $60,000 before recovering to over $70,000, trading at approximately $69,000 by Saturday morning [1] - Major digital tokens, particularly privacy coins, faced substantial losses following a market selloff [1] Major Losers - Monero, a privacy coin, fell nearly 31% over the week, recently priced at $325 after a slight recovery [2] - World Liberty Financial, backed by President Trump, also lost over 31% of its value, trading just above $0.10 [2] - Dash and Zcash, once favored privacy coins, saw declines of 19% and 22% respectively, with Zcash still up nearly 650% year-over-year [4] Other Affected Altcoins - The memecoin Official Trump (TRUMP) dropped 23% this week, trading at $3.39 [5] - Solana, a competitor to Ethereum, experienced the largest decline among major cryptocurrencies, down over 24% and trading at just over $86 [6] - Ethereum also suffered, down nearly 22% and trading at approximately $2,051 [6] Market Dynamics - The crypto market faced turmoil due to the liquidation of billions in leveraged bets and investor concerns over Trump's Federal Reserve chair nomination of Kevin Warsh, known for his inflation hawkishness [7] - The volatility was not limited to cryptocurrencies, as precious metals and stocks also experienced increased fluctuations [7] Recent Market Movements - Bitcoin saw a slight increase of nearly 1% over the past 24 hours, trading at $69,122 [8] - Ethereum rose by 4% in the same timeframe, reaching $2,051 [8]

Core Viewpoint - The ongoing debate within the cryptocurrency industry highlights a divide between proponents of decentralized finance and those who support regulatory frameworks perceived to favor traditional financial institutions [2][4]. Group 1: Criticism of Regulatory Approaches - Charles Hoskinson, founder of Cardano, criticized Ripple Labs CEO Brad Garlinghouse for not opposing the current draft of the cryptocurrency market structure bill, which is viewed as favoring banks [2]. - Hoskinson expressed that the bill's approach is inadequate, arguing that it is better to embrace chaos than to compromise the integrity of the cryptocurrency movement [3][4]. Group 2: Industry Reactions - Garlinghouse defended the Senate Banking Committee's efforts, stating that the proposed frameworks provide necessary clarity for the crypto industry [2]. - Coinbase Global Inc. withdrew its support for the cryptocurrency market structure bill shortly before a scheduled vote, resulting in an indefinite postponement of the bill's markup [5]. Group 3: Calls for Accountability - Hoskinson has called for the resignation of David Sacks, the White House cryptocurrency czar, if the bill fails to pass in the first quarter, attributing the lack of progress to Sacks' inaction [6]. - Hoskinson's previous support for Trump contrasts with his current criticism of the administration's impact on cryptocurrency legislation, particularly regarding ventures that hinder the passage of crypto bills [7].

Core Insights - The founder of Cardano, Charles Hoskinson, reported a loss of over $2.5 billion in the past four years, attributing the failure of the crypto market not to technology but to government involvement that disrupted the anticipated bull market [1][2]. Group 1: Market Performance - The cryptocurrency market was expected to thrive following Trump's election, but instead, it has experienced chaos, with most cryptocurrencies declining by 40-50% since he took office, indicating an unhealthy industry under current leadership [2]. - Retail investors are facing significant losses, with many down 70-80% from their entry points, leading to a reluctance to reinvest in the market [7]. Group 2: Political Impact - The launch of the Official Trump meme coin has been described as catastrophic, transforming crypto from a bipartisan issue into a partisan weapon, which could hinder meaningful legislation even if Republicans regain control of Congress [4][5]. - The strategic error in launching the meme coin under uncertain regulatory conditions is highlighted, as it could have generated more revenue if done within a proper framework, potentially attracting institutional capital [6]. Group 3: Industry Resilience - Despite facing challenges such as the FTX collapse and regulatory enforcement, the industry has shown resilience, although new problems have emerged with increased government involvement [3]. - Institutional investment in Bitcoin through ETFs and structured products has driven its price higher, but this capital has not benefited the altcoin market, which has remained stagnant [7][8].

Market Overview - The cryptocurrency market capitalisation has decreased by 1.8%, now standing at $3.57 trillion [1][2] - Total crypto trading volume is at $154 billion [1] Price Movements - 87 of the top 100 coins have seen price declines, with 9 of the top 10 coins also down [2] - Bitcoin (BTC) has decreased by 1% to $103,854 [2][3] - Ethereum (ETH) has fallen by 2.6% to $3,459 [2][3] - Solana (SOL) experienced the highest drop at 3.2%, trading at $977 [3] - The only coin in the green is Tron (TRX), which appreciated by 0.5% to $0.2994 [4] Notable Winners and Losers - Official Trump (TRUMP) saw the largest decline of 6.6% to $7.81 [4] - Arbitrum (ARB) fell by 5.6% to $0.2789 [4] - Canton (CC) had the highest appreciation at 25.4% to $0.1379 [4] - Aster (ASTER) increased by 7.9%, now standing at $1.16 [4] Market Sentiment - Despite optimism regarding the potential end of the US government shutdown, crypto traders remain cautious with subdued sentiment due to weak ETF inflows [5] - Crypto market sentiment has dropped into the fear territory [2] Technical Analysis - Bitcoin is currently between support and resistance levels of $100,600 and $108,500, with a break of either likely to define the next directional trend [6] - Ethereum's fundamentals are noted to be strong despite recent price declines, driven by significant growth in stablecoins [7]