CoinRank Crypto Digest: February 03, 2025

Welcome to the first CoinRank Crypto Digest of 2025. In the new year, CoinRank will continue to provide daily important crypto news in this column series, allowing readers to quickly obtain the latest crucial updates from the cryptocurrency market.

MORNING NEWS

1. WLFI Crypto Investment Down $51.7M, a 21% Loss

WLFI’s $243M crypto investment from January 19-31 has lost $51.7M (21%) due to Trump’s new tariff policy. Losses include ETH (-$36.7M, -24.4%), WBTC (-$8M, -12.1%), and ENA (-$2.05M, -43.7%).

2. Indian Crypto Holders Face 70% Tax Penalty on Undisclosed Gains

Finance Minister Nirmala Sitharaman announced cryptocurrencies will be included under Income Tax Act Section 158B for undisclosed income reporting. The amendment enables block assessment of unreported crypto gains, treating them like traditional assets such as currency and bullion. Virtual Digital Assets (VDAs) definition now includes crypto assets under Section 2(47A), requiring reporting under Section 285BAA. Authorities may impose up to 70% tax penalties on undisclosed crypto profits from up to 48 months prior, calculated on total tax and interest due on additional income disclosed in updated ITRs.

3. BlackRock’s IBIT Holdings Exceed $61B

As of January 30, BlackRock’s IBIT holdings reached $61,120,106,337.95, containing 579,303.56 BTC.

4. Bitwise CIO: SEC May Approve Up to 5 Spot Crypto ETFs This Year

Bitwise CIO Matt Hougan suggests the SEC might approve up to five different digital asset spot ETFs this year, pending crossing the regulatory “Rubicon.” While skeptical about MELANIA’s approval, he believes other commodity-like cryptocurrencies have better chances. Hougan notes that markets like Germany and Switzerland approve spot crypto ETFs without regulated futures markets beyond Bitcoin and Ethereum. Tuttle Capital has filed for 10 leveraged crypto ETFs, including meme coins and assets like Chainlink, Cardano, Polkadot, BNP, and MELANIA. Bitwise has filed for a Dogecoin ETF with Coinbase Custody as custodian.

5. Bloomberg: Crypto Markets Hit by Risk-Off Move After Trump’s Tariff Announcement

BTC Markets CEO Caroline Bowler attributes market decline to Trump’s tariff policies and recession fears spreading to altcoins and Bitcoin. BTC fell to around $97,000, its lowest in over two weeks, dropping 4.3% Sunday. ETH declined 8%, while DOGE fell 14%, down 45% from its December 8 peak following Trump’s election victory. Other altcoins including XRP, ADA, AVAX, and LINK dropped over 10%. On February 1, the U.S. announced 25% tariffs on Canadian and Mexican imports, with 10% on Canadian energy resources, effective in 4 days. The White House warned of potential increases if met with retaliatory measures.

NOON NEWS

1. Arthur Hayes Reports Rumors of Major ETH Position Liquidation

BitMEX Co-Founder Arthur Hayes posted on X: “Ok degens, I want to hear some theories as to which crypto trading outfit is a zombie cause they got liquidated on $ETH. I’m hearing some thangs. No idea if true or not.”

2. Bitcoin Kimchi Premium Reaches Three-Year High at 12%

CryptoQuant CEO Ki Young Ju announced on X that Bitcoin’s Kimchi Premium has hit 12%, a three-year high, with BTC’s recent decline primarily attributed to strong DXY performance.

3. Raydium Becomes Largest DEX Platform, Surpassing Uniswap in January

The Block data shows Raydium processed 27% of DEX trading volume in January, overtaking Uniswap as the largest DEX platform. Raydium’s market share grew from 18.8% to 27.1%, while Uniswap’s declined from 34.5% to 22%. Additionally, Solana’s DEX volume has exceeded Ethereum’s since October 2024, driven by Raydium’s surge. January’s spike in Solana DEX volume, likely related to Trump’s MEME token launch, reached five times Ethereum’s weekly volume.

4. Whale Maintaining 50x ETH Short Position with $48.4M Unrealized Profit

Hypurrscan data reveals a closely watched whale holding a 50x leveraged ETH short position has maintained their position as ETH approaches $2,100, currently sitting on approximately $48.4 million in unrealized profits.

5. Crypto Markets Tumble as Trump’s Tariff Announcement Triggers Risk-Off Move

Crypto traders significantly reduced token positions following President Trump’s weekend tariff announcement. Ethereum, the second-largest digital asset, plunged 27% to $2,135 in Asian trading Monday morning before partially recovering – its largest intraday drop since May 2021. Bitcoin fell nearly 6%, with smaller tokens experiencing steeper declines. BTC Markets CEO Caroline Bowler stated: “Trump’s tariff war is affecting the entire market, with concerns about trade war and stagflation triggering recession fears spreading to all cryptocurrencies and bitcoin.”

EVENING NEWS

1. Binance Pay and xMoney Form MiCA-Compliant Partnership for European Expansion

Binance Pay announced partnership with Web3 payment provider xMoney to expand European crypto accessibility. The collaboration connects Binance Pay users with xMoney’s 20,000+ merchant network under MiCA regulations, expanding total merchant network to 32,000+ businesses.

2. Coinbase Obtains FCA License for UK Crypto Operations

Coinbase obtained FCA registration after 6-month review, becoming UK’s largest licensed crypto exchange. Only 14% of applicants succeed. New license enables direct crypto services alongside existing fiat operations through CB Payments Ltd, including staking and stablecoin services without third-party approval.

3. Russia Plans Mandatory Registry for Crypto Mining Equipment

Russian Energy Ministry announced plans for mandatory registration of all crypto mining equipment. Deputy Minister Yevgeny Grabchak leads initiative to identify mining activities, particularly in prohibited areas. TASS reports unregistered mining will become “impossible” under new system.

4. TRUMP Token Generates $100M in Fees While 200,000 Traders Face Losses

Trump’s crypto entity earned nearly $100M in trading fees within two weeks of TRUMP token launch on January 17. Analysis by Merkle Science and Chainalysis shows $86-100M in fees generated through January 30, benefiting Trump’s CIC Digital. Approximately 200,000 wallets, mostly small holders, recorded losses.

5. Bitwise Executive: Tariffs Temporary, Bitcoin Long-term Bullish

Bitwise Alpha’s Jeff Park views tariffs as temporary, predicting stronger Bitcoin growth due to dual demand from trade imbalance parties. After Trump’s tariff announcement, Bitcoin fell to $91,000 (-10%) before rebounding to $95,000. ETH dropped 20%, while Solana showed resilience with only 6% decline. Mercuryo CEO notes market-wide FUD but highlights Bitcoin’s relative strength.