January 2025 was a pivotal month for the cryptocurrency industry, marked by significant events that influenced market dynamics, regulatory landscapes, and technological advancements. 

Bitcoin Hits $109,400 Before Retracing on Inauguration Day

On January 20, 2025, Bitcoin hit a record high of $109,400 before experiencing a sharp pullback following Donald Trump’s inauguration. The rally was fueled by speculation on pro-crypto policies, but profit-taking and broader macroeconomic pressures led to a correction.

Bitcoin’s Increasing Correlation with U.S. Stocks

Bitcoin’s price movements are now closely tied to the U.S. stock market, making it more vulnerable to macroeconomic shifts, including DeepSeek AI’s impact on the tech sector, influencing investor sentiment, Trump’s new tariff policies, which could affect global trade and market liquidity, and Federal Reserve’s monetary policy shifts, impacting risk asset flows. These factors are expected to influence Bitcoin’s short-term volatility and long-term accumulation trends significantly.

Launch of the $TRUMP Meme Coin

On January 17, 2025, President Donald Trump introduced the $TRUMP meme coin. The coin’s value surged rapidly, reaching a market capitalization of nearly $13 billion within two days. However, by January 21, the coin’s value declined by approximately 50%, highlighting the volatility inherent in meme-based cryptocurrencies. 

U.S. Reshapes Crypto Policy with Executive Order 14178

On January 23, 2025, President Donald Trump signed Executive Order 14178, titled “Strengthening American Leadership in Digital Financial Technology.” This order revoked previous directives related to digital assets and prohibited the establishment or promotion of central bank digital currencies. It also established a group tasked with proposing a federal regulatory framework for digital assets within 180 days, signaling a shift in the U.S. government’s approach to cryptocurrency regulation. 

 The U.S. crypto regulatory landscape is also undergoing major changes, with the SEC rescinding SAB 121, allowing banks to offer crypto custody services and easing institutional adoption. Newly appointed SEC Acting Chair Mark Uyeda launched a crypto regulation task force, aiming to establish clearer industry guidelines.

 Meanwhile, Senator Cynthia Lummis now leads the Senate Banking Subcommittee on Digital Assets, strengthening congressional oversight. Eric Trump introduced a zero capital gains tax policy for U.S.-based crypto companies, positioning the U.S. as a hub for blockchain innovation. Elon Musk is reportedly exploring blockchain applications within the Department of Government Efficiency (DOGE), hinting at potential government adoption.

These regulatory shifts signal a turning point for the crypto industry, paving the way for institutional expansion, clearer compliance frameworks, and greater integration of digital assets into the U.S. financial system.

EU’s MiCA Regulation Fully Enforced

The European Union’s Markets in Crypto-Assets (MiCA) regulation became fully applicable across all member states. This comprehensive framework establishes uniform rules for crypto-asset service providers (CASPs), including requirements for authorization, governance, and consumer protection. MiCA distinguishes between different types of crypto-assets, such as e-money tokens (EMTs) and asset-referenced tokens (ARTs), each subject to specific regulatory standards. The regulation also mandates that CASPs implement measures to prevent market abuse and ensure transparency in their operations.

Turkey Tightens Crypto Regulations

Turkey’s Capital Markets Board (CMB) introduced comprehensive regulations for crypto asset service providers to enhance market security and investor protection. Key measures include prohibitions on leveraged trading, derivative contracts, margin trading, short selling, and lending activities for listed cryptocurrencies. Service providers are now required to establish internal audit, control, and risk management units, and must integrate with the Central Securities Depository (MKK) to report client account balances. Additionally, all crypto asset service providers must obtain operational licenses from the CMB and implement price monitoring systems to prevent market manipulation. 

Stablecoin Market Cap Surges by 6.45% ($12 Billion)

The stablecoin market cap surged by 6.45% ($12 billion) in January, signaling strong capital inflows into the crypto sector. This growth reflects increased accumulation by institutional investors and greater liquidity for DeFi applications and cross-border transactions, reinforcing stablecoins’ role in the broader financial ecosystem.

Surge in Retail Crypto Activity in Asia-Pacific

The Asia-Pacific region experienced a 6.4% year-over-year increase in Bitcoin retail trading, while the U.S. and European Union saw declines of 5.7% and 0.7%, respectively. This surge is attributed to clearer regulatory frameworks in countries like Singapore, which provide investors with greater confidence. The widespread adoption of smartphones and digital platforms in Southeast Asia has also made cryptocurrency trading more accessible. Additionally, the rapid expansion of digital economies in the region has heightened awareness and acceptance of cryptocurrencies among retail investors.

Hong Kong Recognizes Crypto Assets for Investment Immigration

Hong Kong has officially recognized Bitcoin and Ethereum holdings as valid proof of assets for investment immigration applications. This policy shift aims to attract high-net-worth individuals and tech-savvy investors to the region. Applicants must demonstrate ownership of at least HK$30 million (approximately $3.8 million USD) in digital assets and commit to investing the same amount in Hong Kong within six months. The government mandates that these crypto assets be securely stored in cold wallets or held on reputable exchanges like Binance.

Japan’s Metaplanet Inc. Stock Skyrockets

Over the past year, shares of Japan-based Metaplanet Inc. have surged approximately 4,800%, marking the largest gain among Japanese equities during this period. Originally a hotel developer, Metaplanet pivoted to a Bitcoin-first strategy in early 2024 under CEO Simon Gerovich, a former Goldman Sachs trader. The company currently holds 1,762 BTC, valued at approximately $171 million, with plans to expand its holdings to 21,000 BTC by 2026. This strategic shift has attracted a significant number of retail investors, bolstered by Japan’s revamped Nippon Individual Savings Account program, which encourages long-term investment. 

China’s Renewed Focus on Digital Yuan

China is intensifying efforts to expand the international use of its digital yuan (e-CNY). The People’s Bank of China (PBOC) has been actively testing cross-border digital yuan payments with countries like Singapore and participating in the mBridge project, a collaboration with central banks from Thailand, the United Arab Emirates, Hong Kong, and Saudi Arabia, aiming to facilitate real-time, cross-border transactions using central bank digital currencies (CBDCs).  Additionally, Shanghai has unveiled plans to boost digital finance, including improving digital yuan acceptance, signaling a renewed focus on the internationalization of its currency.