Trakx Weekly Update: January 6

Key Crypto Market Figures

CTIs Weekly Performance

After the strong gains digital assets witnessed in 2024 – our Top 10 Crypto CTI finished up 127%, well ahead of any tradfi asset class – a hangover phase was also likely. However, it didn’t last long and the arrival of 2025 saw the bulls reinvigorated. This sentiment rebound was nicely captured by our benchmark CTI rallying almost 10%, marking a great start to what promises to be a great year for the digital assets (see below for our 2025 crypto outlook). The best start to the new year though was recorded by the AI and Meme CTIs – two of last year’s favourite crypto themes – with each index gaining just shy of 20% over the past week. By contrast, and despite gaining 1%, last spot in the performance rankings was taken by the Bitcoin Momentum CTI.

The Crypto Overton Window

Trump’s victory during last November’s presidential election saw the crypto overton window widen markedly to include the prospect of nation states establishing official Bitcoin reserves – a notion many would have previously dismissed as pure fantasy. The US may be the vanguard, but it is far from alone. One country where crypto supporters are pushing for such a reserve is Switzerland. Unlike the rest of Europe, Switzerland embraces a more direct form of democracy which gives its electorate powers to shape policy via numerous public referendums. Leveraging this framework, Swiss Bitcoin think-tank 2B4CH, submitted a constitutional amendment proposal for the SNB – the Swiss central bank – to hold Bitcoin as a reserve asset on its balance sheet. The filing was initially made on December 5^th but was only this past week approved by Switzerland’s Federal Chancellery. In order for the proposal to be put to a public vote, it must secure 100,000 signatures, which is quite feasible for a country with a population of just under 9 million and who plays host to the annual Plan B Bitcoin conference in Lugano – a city in southern Switzerland well-known for its pro-crypto stance.

Europe Untethered

As the world’s first fiat-backed stablecoin, by design Tether’s (USDT), price is supposed to be boring. While this turns out not to be the case at all times, it means that most of the “action” so to speak is only visible when looking at the token’s market cap. Since the start of the year, Tether’s market cap has fallen by 1% to $137bn. Such a decline might not sound like much on the face of it, but it represents the most significant drop since FTX’s failure at the peak of the last crypto winter in Nov2022. The drop occurred after MiCA – the EU’s flagship digital asset legislation – came into full effect on December 31. MiCA requires the issuers of publicly listed asset referenced tokens (a definition that encompasses fiat-backed stable coins) to have a licence and because Tether does not have such a licence several EU based crypto exchanges decided to delist USDT (EU-based holders can continue to hold USDT in non-custodial wallets).

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• What Is AiXBT? The AI Influencer Taking Crypto by Storm: Decrypt
• Proposal mandating the Swiss National Bank to hold Bitcoin now underway: Cointelegraph
• Tether’s Market Value Sees Sharpest Decline Since FTX Crash as MiCA Kicks In: CoinDesk
• Spot ether ETFs logged record monthly inflows exceeding $2 billion in December: TheBlock
• Polymarket odds surge in favor of Solana ETFs securing SEC approval in 2025: CryptoSlate

Trakx News

• Let us begin by wishing you all a very happy new year and we hope 2025 is a prosperous year for you as the crypto industry builds on last year’s positive momentum. Certainly, this is the view of our crypto economist Ryan Shea who has just published his 2025 Crypto Outlook.
• Save The Date Announcement: The next Trakx CGP Seminar will be held in Lyon on January 21.

Trakx CTIs Performance

Sources: Coingecko and AlphaVantage

*Return of bitcoin is calculated since 01/05/2020, while CTIs performances were calculated since their respective launch date.
**Includes simulated performance.
***The risk signal is determined according to the historical volatility level, the higher the riskier.

Trakx is a global fintech company creating new standards for digital asset investments. Through our trading platform, we offer thematic Crypto Tradable Indices (CTIs) and customised solutions, providing sophisticated investors with a high degree of compliance, custody and liquidity.

TRAKX SAS,  10 rue de Penthièvre, Paris, 75008, FRANCE – French société par actions simplifiée Paris Trade and Companies Register number 850 626 078. Crypto Asset Service Provider (CASP) Registered with the Autorité des Marchés Financiers (AMF) under number E2021-020

Disclaimers: No Investment Advice. Index returns and statistics are for illustration only. Index returns do not reflect any transaction costs or expenses. Past performance does not guarantee future results. The information provided in this newsletter does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the newsletter content as such. Trakx.io does not recommend that any cryptocurrency should be bought, sold, or held by you. Readers shall conduct their own due diligence and consult their financial advisors before making any investment decisions.