BENGALURU: Potential policy initiatives such as national crypto reserve and stablecoin regulations have contributed to the growth of the cryptocurrency market in January 2025 as it peaked at $3.76 trillion, a 4.3% monthly increase in market capitalisation.
Binance Research, the research arm of the leading cryptocurrency exchange Binance, in its report said this positive momentum has strengthened investor confidence, leading to increased institutional interest and broader adoption.
“The policy shift has also sparked hopes for a more favourable regulatory environment, potentially paving the way for innovation and mainstream acceptance. As a result, the market is witnessing heightened activity, with key crypto assets reaching new highs,” it said.
Bitcoin (BTC) surged 11.7%, driven by pro-crypto policies and speculation about its potential inclusion in the Czech National Bank’s reserves, signaling growing institutional interest, it said.
The research points out that however, momentum stalled in late January when DeepSeek reportedly developed an AI model at a fraction of the cost and with significantly fewer resources than its competitors. This raised concerns about overvaluations in the U.S. tech sector and triggered a sharp market reaction, wiping out billions of dollars from both US and cryptocurrency markets.
As of February 17, 2025, Bitcoin is trading at approximately $96,400. Ryan Lee, Chief Analyst at Bitget Research, said current sentiment appears mixed, with technical indicators suggesting a potential retest of the $91,000 support level before any sustained upward movement.