US crypto policy takes shape with strategic reserve plans

Hola folks!

Welcome back to our weekly crypto market update. Last week, the global crypto market experienced volatility due to technical price correction in bluechip crypto assets and disappointment over the US government not deploying fresh funds to buy cryptos for the US strategic crypto reserve.

BTC gave up all gains from the previous week as it trades around the $82K mark. BTC needs to regain its support levels around $86K for this to be a price decline to be treated as a fakeout and sustain the upward climb. 

Read the newsletter to know more about the ups and downs of the crypto market and what might be in store for the coming week.

Bitcoin experienced volatility even as the US crypto policy took shape under President Donald Trump. It crashed to $82K from a high of $95K, wiping out recent gains and triggering over $1 billion in liquidations. This was influenced by Trump’s tariffs on China and Mexico. BTC later tested a low of $81.5K before rebounding to $89K and subsequently broke past $90K to reach $91.5K, supported by positive market momentum. 

Trump announced that the Crypto Strategic Reserve would be financed using Bitcoin confiscated through criminal and civil forfeiture cases, with no plans for the US government to purchase additional Bitcoin. The market reacted negatively, causing a 5% drop despite its potential long-term bullish implications.

On the regulatory front, the SEC recently dismissed its lawsuit against the cryptocurrency exchange Kraken and closed an investigation into Yuga Labs. 

On the institutional and DeFi fronts, Bitwise, a digital asset management firm that oversees more than $12 billion in assets, made its first institutional allocation to DeFi through Maple Finance. Ondo Finance solidified its position as the largest RWA platform, surpassing $1 billion in TVL and capturing 24% of the $4.14 billion tokenized treasuries market. 

Next week, it will be interesting to see whether Bitcoin pushes close to $100K or if trade tensions will keep markets on edge.

Solana has emerged as a leader in DEX activity, recording an impressive $109 billion in monthly DEX volume, 24% higher than Ethereum’s $88 billion, making it the top-performing blockchain for DEX trading. 

Avalanche saw a 140% surge in active wallets last week, growing from approximately 150,000 to 360,000 unique wallets, reflecting heightened user engagement on the network.

The Uniswap Foundation proposed a $165 million initiative to accelerate the development of Uniswap V4 and its layer-2 solution, Unichain. 

SUI’s price surged 13.7% after announcing a strategic partnership with World Liberty Financial, a collaboration to advance blockchain-based financial services and drive greater DeFi adoption.

Weekly price movement: 

• BTC $81,553 ⏬ 10.97%

• SOL $126.36 ⏬ 20.82%

• SUI $2.32 ⏬ 20.77%

• AVAX $18.11 ⏬ 21.99% 

(All data here as of 2.20 p.m., 10 March 2025)

Before we conclude, here’s a quick look at some important news from around the crypto world.

• US President Donald Trump has signed an executive order to establish a strategic reserve of cryptocurrencies by using tokens already owned by the government.  A “Strategic Bitcoin Reserve” will be capitalized with bitcoin owned by the federal government that was seized as part of criminal or civil asset forfeiture proceedings, the White House crypto czar David Sacks said in a post on social media platform X.  Read more here.

• Strategy co-founder Michael Saylor shared a comprehensive cryptocurrency strategy at the White House Digital Assets Summit, arguing that the US can unlock up to $100 trillion in economic value over the next decade by establishing a clear regulatory framework, removing barriers to innovation, and strategically acquiring bitcoin. Read more here.  

That’s it for now. Thanks for sticking around.

See you later, folks! 👋

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