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Crypto weekly update
16. January 2025  • clock 3 min •  Jozef Lajcin

The crypto community helps victims of the fires in Los Angeles – Market Info

The cryptocurrency market capitalization has been dynamic over the past two weeks, ranging from 3.04 to 3.49 trillion euros. It currently stands at 3.34 trillion euros. Bitcoin’s dominance has not changed significantly, remaining at 58 %. The altcoin season index is currently at 47, and the Fear and Greed Index indicates a neutral market sentiment.

Source: coinmarketcap

The crypto community helps victims of the fires in Los Angeles

In response to the devastating wildfires in Los Angeles that began on January 7, claiming 24 lives and destroying over 12,000 structures, the cryptocurrency sector has stepped up with significant donations to support relief efforts.

Source: Fortune

Blockchain infrastructure company Blockdaemon pledged $50,000 to several charities, including Megafire Action, the LA Fire Department, and Mutual Aid LA Network. Similarly, The Giving Block, a non-profit platform that facilitates crypto donations, launched a $2 million fundraising campaign to support first responders, displaced residents, and animal rescue efforts by converting crypto contributions into cash donations for vetted charities.

Ripple, a blockchain leader headquartered in San Francisco, donated $100,000 worth of XRP to World Central Kitchen and GiveDirectly to provide meals and direct cash assistance to those affected. Ripple had previously announced a separate $50,000 donation in partnership with MoonPay to support LA’s Fire Department Foundation.

Blockdaemon CEO Konstantin Richter emphasized the importance of community solidarity and called on other crypto leaders to contribute, announcing plans for an open call for further crypto donations that will be distributed transparently to relief organizations. Source

Bitcoin ETFs Continue to See Outflows, While Ethereum ETFs See a Turnaround

American spot Bitcoin ETFs faced a four-day capital outflow as of January 14, while Ethereum-focused ETFs showed recovery and recorded investment inflows.

According to data from SoSoValue, 12 spot Bitcoin ETFs reported a net outflow of $209.82 million on Tuesday (January 14), with the total amount over the past four days reaching more than $1.2 billion. The largest outflow on Tuesday was recorded by BlackRock’s IBIT fund at $219.48 million, followed by Bitwise’s BITB fund with an outflow of $8.93 million. On the other hand, WisdomTree’s BTCW fund attracted $10.24 million, while VanEck’s HODL fund and ARK 21Shares’ ARKB fund gained $5.46 million and $2.89 million, respectively. Other Bitcoin ETF funds remained unchanged.

Source: Farside.co.uk

In contrast, Ethereum ETF funds saw a slight increase on Tuesday, January 14, ending a four-day outflow period totaling $354 million. Bitwise’s ETHW fund recorded the most significant inflow at $1.15 million, while other funds reported no activity. The total net inflow of investments since the launch of Ethereum ETF funds amounts to $2.41 billion. Source

Italy’s largest bank Intesa Sanpaolo invests in Bitcoin

The largest Italian bank, Intesa Sanpaolo, has made a significant move in the field of digital assets—on January 13, it announced its first Bitcoin purchase: 11 BTC worth approximately 1 million euros (1.02 million dollars). This information became public after an internal email from the head of the digital assets department, Niccolò Bardoscia, was leaked. In his message, he thanked his team for their collaboration and confirmed that as of January 13, the bank owns 11 Bitcoins.

The bank officially confirmed this transaction in an interview with Wired, although it did not respond directly to the media. This investment comes at a time when institutional interest in Bitcoin is rising—on January 13, Bitcoin reserves on exchanges reached nearly a seven-year low, indicating increased purchases during a price dip. This trend could cause a “supply shock,” a situation where increasing demand and limited supply push prices higher.

Similarly, MicroStrategy purchased Bitcoin worth over 243 million dollars, increasing its total holdings to more than 450,000 BTC. Intesa Sanpaolo’s move demonstrates that major financial institutions are starting to solidify their positions in the cryptocurrency sector despite the market’s ongoing volatility. Source

Shareholder Proposal to Invest in Bitcoin Submitted to Meta

Shareholder Ethan Peck proposed that Meta allocate part of its $72 billion in cash and liquid assets into Bitcoin as a hedge against inflation. According to him, cash holdings have lost 28% of their value due to inflation, while Bitcoin outperformed bond returns by 1,262% over the past five years.

https://lh7-rt.googleusercontent.com/docsz/AD_4nXdcLO6NeuzhV-pUNMRqOC-8Q6l3-89wcYl9du-vNzvAb4ZfEcZM7uSVldkJhEN7fr8F-t1C9QFx0T4N6XzqZoVK2b2bY30X5DdflwYJguroxmt0vr34N0D8yEDhmB6KiDyozcPrFQ?key=3lStj5E2ut2mZZqYkGh5nxVf

Source: cointelegraph

Peck pointed out that Mark Zuckerberg named his goats “Bitcoin” and “Max” and noted that Meta board member Marc Andreessen has praised Bitcoin and serves on Coinbase’s board of directors. He emphasized the need for shareholders to access similar asset diversification strategies.

Peck, a member of the Washington D.C.-based think tank The National Center for Public Policy Research, submitted the proposal as part of his family’s holdings. In 2024, this organization presented similar proposals to Microsoft and Amazon. The proposal for Microsoft, recommending that the company invest at least 1% of its cash assets into Bitcoin, was rejected on December 10, 2024.

The organization also proposed an investment to Amazon, which will be decided at the shareholders’ meeting in April 2025. The proposal noted that the official inflation metrics via the CPI index may underestimate real inflation.

According to Valereum CEO Nick Cowan, tech companies hesitate to invest in Bitcoin due to its volatility and limited income opportunities from holding the cryptocurrency. Source

Russian Citizen Sentenced to 7 Years for Sending Cryptocurrency to Ukrainian Military

A Russian man from Yakutia has been sentenced to seven years in a high-security prison for financially supporting the Ukrainian Armed Forces (AFU) by sending cryptocurrency donations.

According to Izvestia, this is the first publicly reported court verdict in Russia involving the use of cryptocurrency to fund a foreign military force. The Federal Security Service (FSB) in the Republic of Sakha issued a statement confirming that the man, born in 1988, was charged under Article 275 of Russia’s Criminal Code for high treason due to “providing financial aid to a foreign organization.”

Although the man’s identity remains undisclosed, reports indicate that he is employed by a diamond mining company and resides in Yakutia. The FSB revealed that he had joined a social media group connected to Ukrainian military members, where he received instructions on transferring funds through a cryptocurrency wallet to support the AFU. Russia classifies the AFU as a “terrorist organization.”

Since the onset of the Russia-Ukraine war in 2022, Ukraine has continued to receive millions in cryptocurrency donations. In 2024 alone, decentralized finance (DeFi) transactions to Ukraine increased by over 362%, surpassing $10 million by October.

In December 2024, Ukraine unveiled plans to legalize cryptocurrency in early 2025. The proposed legislation would regulate crypto similarly to securities, meaning that crypto holdings converted to traditional currency would be taxable. The Ukrainian government stated that tax exemptions would be avoided to prevent potential abuse, as they work with experts and the International Monetary Fund (IMF) to finalize the law. Source


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Jozef Lajcin

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