Quick Take

• Bitcoin’s market value to realised value (MVRV) ratio fell to its lowest level since March 2023; Crypto.com co-founder and CEO Kris Marszalek launched ai.com; Truth Social filed to launch two ETFs linked to BTC, ETH. and CRO.
• US spot BTC ETFs had a net outflow of US$360 million last week, similar to the $359 million the week prior. Spot ETH ETFs saw a net outflow of $161 million in the same period, slightly down from $170 million the week prior.
• On the macro side, the US Consumer Price Index (CPI) for January rose 2.4% year-on-year, cooling more than the 2.5% expected. The Nonfarm Payrolls report for January showed a surge of 130,000 jobs, significantly outperforming the consensus estimate of 55,000, while unemployment fell to 4.3%. The latest CME FedWatch Tool indicated a 10% probability of a March rate cut, compared to 18% last week. The US Department of Homeland Security (DHS) entered a shutdown on Saturday after the Senate failed to pass a funding bill.
• Notable updates: Ethereum Foundation (EF) announced that co-executive director Tomasz Stańczak is stepping down; Ripple partnered with Aviva Investors to tokenise traditional investment funds on the XRP Ledger; World Liberty Financial is launching World Swap, a foreign exchange and remittance platform; BlackRock’s BUIDL shares will be tradable on Uniswap; Aave Labs proposed the ’Aave Will Win’ governance proposal; Ondo integrated Chainlink Data Feeds to support tokenised US stocks.
• Notable events in the coming week: US FOMC Minutes, Core Personal Consumption Expenditures (PCE) Price Index, Reserve Bank of New Zealand (RBNZ) Interest Rate Decision.

Research Dashboard

According to our research dashboard, the price, volume, and volatility indices fell by -2.29%, -48.45%, and -47.90%, respectively, last week. BTC and ETH decreased by -2.5% and -6.1%, respectively. BTC dropped to $65,000 midweek before recovering to $68,000 over the weekend. Despite the US Consumer Price Index (CPI) for January cooling more than expected, the overall decline in crypto reflected a broader risk-off sentiment.

Tokens in the index were mixed, with ZEC (+22.16%) and TAO (+11.21%) leading the increase. TAO’s increase aligned with the broader recovery in Artificial Intelligence last week.

All tokens in the index decreased in volume except for UNI (+5.68%). BlackRock made a strategic investment in the Uniswap ecosystem and will make shares of BUIDL tradable on Uniswap.

Chart of the Week

Bitcoin’s market value to realised value (MVRV) ratio, which compares its market cap to the price at which the supply last moved, stood at 1.13 on 5 February, the lowest since March 2023. This coincided with a drop in bitcoin’s price to around $62,000 on the day. A value below 1 indicates that the supply is undervalued at the market price, potentially suggesting bitcoin may be approaching an undervalued price.

Weekly Performance

Top-cap tokens showed mixed performance last week.  BTC and ETH decreased by -2.5% and -6.1%, respectively, reflecting a broader risk-off sentiment despite the US Consumer Price Index (CPI) for January cooling more than expected. POL and ATOM led the increase.

Most key categories increased in market capitalisation in the last seven days, led by Artificial Intelligence and Meme.

News Highlights

Crypto.com / Cronos News

• Yorkville America Equities, which is tied to Truth Social, filed with the US SEC to launch two crypto ETFs: Truth Social Bitcoin and Ether ETF and Truth Social Cronos Yield Maximizer ETF. The former will provide exposure to BTC and ETH, while the latter will invest in and stake CRO.
• The US Commodity Futures Trading Commission announced the Innovation Advisory Committee, which includes top crypto executives and will advise on modernising regulations. Crypto.com co-founder Kris Marszalek is among the members.
• Crypto.com co-founder and CEO Kris Marszalek launched ai.com, unveiling a new AI platform through its commercial broadcast premiere during Super Bowl LX on NBC. It allows users to generate a private, personal AI agent, and users can sign up now at ai.com.

Regulation

• The European Parliament voted to back the European Central Bank (ECB)’s development of the digital euro, describing the project as essential to strengthening the EU’s monetary sovereignty.
• Malaysia’s central bank is piloting three regulatory sandboxes for stablecoin usage and real-world asset (RWA) tokenisation. The initiative also aims to test tokenised bank deposits.
• Thailand’s Securities and Exchange Commission approved the use of crypto as underlying assets for derivatives and capital markets. This regulatory shift aims to position the country as an institutional crypto trading hub.
• US National Credit Union Administration (NCUA) proposed licensing rules for payment stablecoin issuers for subsidiaries of federally insured credit unions, including a requirement to obtain an NCUA permitted payment stablecoin issuer (PPSI) licence.
• The Netherlands’ House of Representatives advanced a proposal to implement a 36% capital gains tax on savings and most liquid investments, including crypto. The bill must also pass the Senate before it is signed into law, and is expected to take effect in the 2028 tax year.
• Hong Kong Securities and Futures Commission (SFC) is developing a framework for trading platforms to offer perpetual contracts for professional investors and brokers to provide crypto margin financing, with BTC and ETH initially eligible as collateral.

Adoption

• BlackRock made a strategic investment in the Uniswap ecosystem and will make shares of BUIDL tradable on Uniswap. This marks its first step into DeFi.
• Danske Bank, a major bank in Denmark, now allows clients to invest in BTC and ETH ETPs from BlackRock and WisdomTree through its platform. The offering is only available to self-directed investors who trade on the bank’s platform.
• The UK Government appointed HSBC to facilitate the Digital Gilt Instrument (DIGIT) pilot programme for issuing digital government bonds. This aims to enable faster, more efficient transactions and improve accessibility.

Investment Vehicles

• CME Group announced plans to launch futures contracts for Cardano (ADA), Chainlink (LINK), and Stellar (XLM) to expand its digital asset offerings. The offerings will be in standard and micro sizes.

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