Bitstamp Monthly Briefing – February 2025

Another month, another round of market shifts. February’s briefing covers key trends, biggest movers, and a deep dive into Bitcoin’s potential as a national reserve. Let’s take a look at what’s shaping the conversation.

Market update

The total crypto market cap fell 20.5% month-over-month, reaching $2.74 trillion at the end of February. Trading volume on the leading crypto spot exchanges we monitor dropped 21% during this period.

BTC’s market dominance rose by 2.10 percentage points month-over-month, reaching 60.9%.

Total crypto market cap (grey) and BTC dominance (green)

Past performance is not a reliable indicator of future results. The performance of crypto assets can be highly volatile. Data taken on March 1, 2025.

Biggest movers in February

• +41.5% MANTRA (OM) – The token’s price surged following a ByBit listing announcement and an anticipated token airdrop.
• +37.8% Maker (MKR) – Increased demand and a proposal to boost lending limits drove the price higher.
• +19.3% S (Sonic) – Gains were mainly fueled by a shift in supply dynamics.

• -65.2% Raydium (RAY) – Rumors and speculation about Pump.fun developing its own Automated Market Maker (AMM) contributed to a price drop.
• -46.4% OFFICIAL TRUMP (TRUMP) – The highly speculative meme coin experienced rapid price swings tied to market sentiment surrounding the new U.S. administration.
• -45.9% Ethena (ENA) – Bearish technical indicators and whale activity negatively impacted ENA’s price.

Among top 100 CMC assets. Past performance is not a reliable indicator of future results. The performance of crypto assets can be highly volatile. Data taken on March 1, 2025.

Key macro & crypto events in March 2025

• March 7-8: Bitcoin Alive in Sydney, Australia
• March 12: US Inflation & Core Inflation Rate
• March 13-14: Web3 Amsterdam in Amsterdam, Netherlands
• March 18-20: Digital Asset Summit in New York City, USA
• March 19: FED interest rate decision and US FOMC economic projections
• March 19-20: Next Block Expo Warsaw in Warsaw, Poland
• March 24-28: ETHTLV in Tel Aviv, Israel
• March 25-27: Mining Disrupt Conference & Expo in Fort Lauderdale, FL, USA
• March 26: Crypto Assets Conference in Frankfurt am Main, Germany
• March 26-27: Governing and General Council of the ECB, virtual meeting

The case for Bitcoin as a national reserve

As governments worldwide consider integrating cryptocurrencies into their financial reserves, Bitcoin is emerging as a strong contender.

A strategic Bitcoin reserve differs from traditional reserves, such as gold or oil, in its purpose, structure, and potential benefits. As nations explore new ways to enhance financial stability and adapt to the digital economy, Bitcoin is becoming a compelling asset for national reserves. With its fixed supply and decentralized nature, Bitcoin offers several long-term advantages that could reshape how governments manage their financial assets.

Unlike fiat currencies, which are susceptible to inflation and devaluation, Bitcoin’s capped supply of 21 million ensures scarcity, making it a reliable hedge against inflation. Holding Bitcoin as part of a national reserve could help stabilize economies by diversifying reserves away from inflation-prone fiat and debt-based assets. Additionally, Bitcoin has demonstrated significant price appreciation over time. Governments that allocate a portion of their reserves to Bitcoin could benefit from long-term capital growth, strengthening national balance sheets and mitigating debt burdens.

Bitcoin also provides diversification benefits due to its low correlation with traditional financial assets such as stocks, bonds, and commodities. By integrating Bitcoin into national reserves, governments can reduce exposure to geopolitical and economic shocks, making financial systems more resilient. Beyond financial stability, embracing Bitcoin signals a commitment to digital innovation, potentially attracting tech-savvy entrepreneurs, investors, and blockchain-based businesses. Countries that take the lead in integrating Bitcoin into their financial infrastructure may position themselves as pioneers in the global digital economy.

One of Bitcoin’s key advantages is its transparency. The public ledger allows real-time verification of holdings, minimizing risks of corruption and mismanagement. This level of accountability enhances trust in financial governance. Moreover, Bitcoin’s digital nature eliminates the storage challenges associated with traditional reserves like gold or oil, making it highly portable and accessible. This ease of transfer ensures liquidity and flexibility in financial management, providing governments with a dynamic asset for global transactions.

By incorporating Bitcoin into national reserves, governments can establish themselves as forward-thinking innovators in the financial sector. This could offer a first-mover advantage in shaping the future of global finance and digital asset regulation. While risks remain, such as Bitcoin's volatility, potential conflicts of interest, and the opportunity cost of diverting resources to such a reserve, the potential rewards of early adoption, careful planning, and regulation could outweigh the challenges, positioning Bitcoin as a valuable national asset in the years to come.

Recommended reads

Real World Assets by OurNetwork

Since 2024, the tokenized asset sector has doubled in size, reaching $17.2 billion, driven primarily by private credit and tokenized Treasuries. The growth in private credit was fueled by Figure’s consumer-focused products and Tradable’s institutional platform, which partnered with Victory Park Capital to tokenize $1.7 billion in private asset-backed credit. Meanwhile, tokenized Treasuries surged from $800 million to $3.6 billion, led by products such as Hashnote’s USYC, BlackRock’s BUIDL, and Ondo’s offerings. While legacy networks initially dominated, institutional adoption is now shifting toward Ethereum and emerging blockchain networks.

The Framework Wars by Decentralised

In this blog, Decentralised.co explores the intersection of crypto and AI. While excitement around the sector has waned, AI’s transformative impact remains undeniable, and its integration with crypto is expected to be an ongoing trend. A key innovation from this wave is crypto-native AI agent frameworks, which incorporate blockchain principles like transparency, permissionless value transfer, and aligned incentives into AI development. This blog examines these frameworks, compares them to existing solutions like LangChain, and helps builders determine whether adopting a crypto-native approach is the right move.

The Four Pillars of Venture Investing by Kyle Harrison

The author brilliantly outlines four key principles essential for successful venture investing: sourcing high-quality deals, conducting thorough due diligence, providing value-added support to portfolio companies, and maintaining disciplined portfolio management. By adhering to these pillars, investors can enhance their decision-making processes and increase the likelihood of achieving favorable returns in the venture capital landscape.

No information in this blog is intended to provide any personal investment services or advice nor is it an investment recommendation. Clients are responsible for making their own investment decisions. Bitstamp accepts no responsibility for any damage and/or loss arising from the use of information provided herein. Past performance is not necessarily an indicator of future results. Please consider your individual position and financial goals before making an independent investment decision.

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This blog post has been approved as a financial promotion by Bitstamp UK Limited which is registered with the UK’s Financial Conduct Authority. Please read the Risk Warning Statement before investing. Cryptoassets and cryptoasset services are not regulated by the Financial Conduct Authority. You are unlikely to be protected if something goes wrong. Your investment may go down as well as up. You may be liable to pay Capital Gains Tax on any profits you earn.