After a promising start to 2025, the second week brought a mix of challenges and opportunities in the cryptocurrency market. While Bitcoin experienced a 10% drop, large investors quickly took advantage of the situation and resumed buying. MicroStrategy increased its BTC holdings as promised, and hedge funds joined in, pushing Bitcoin reserves on exchanges to their lowest level in seven years.
Solana remains a key focus, with analysts predicting it could outperform Bitcoin and Ethereum in 2025. Meanwhile, Meta may consider holding reserves in Bitcoin, and the public disclosure of OpenSea users’ email addresses from a 2022 data breach highlights the ongoing risks of fraud in the crypto world.
Read this week’s crypto news on CryptoUnity to learn about these developments and how they could impact the market.
Bitcoin Drops 10%, But Whales Are Buying Again
Last week, Bitcoin lost 10% of its value, dropping from €99,000 to around €88,600. This price decline continues a downward trend that began in December, largely driven by institutional investors selling off significant BTC holdings following interest rate cuts by the U.S. Federal Reserve.
However, major investors, or “whales,” who control large amounts of Bitcoin, are buying again. After the price fell below €92,000, they accumulated over 34,000 BTC, worth approximately $3.2 billion.
Analysts suggest that Bitcoin may drop further in the coming weeks, possibly retesting the €85,000 level before rebounding. Increased volatility is expected around the inauguration of U.S. President Donald Trump, with some remaining optimistic about the price reaching €120,000.
Long-term projections for 2025 remain highly optimistic, with analysts forecasting that Bitcoin could reach between €150,000 and €400,000 this year. Factors driving this growth include pro-crypto policies from the new U.S. administration, rising institutional and corporate demand, and increased overall market interest.
Bitcoin Exchange Reserves Hit a 7-Year Low: MicroStrategy and Hedge Funds Buy In
MicroStrategy, known for its significant Bitcoin investments and status as the largest corporate Bitcoin holder globally, has made another major purchase.
As announced earlier this year (see last week’s news), the company took advantage of the recent Bitcoin price dip and acquired $243 million worth of BTC at an average price of around €94,000. Its total holdings now exceed 450,000 BTC, purchased for a combined €28.2 billion at an average price of €61,500 per coin.
Hedge funds have also been accumulating BTC, contributing to Bitcoin exchange reserves hitting their lowest levels in seven years. This decline in exchange reserves signals a potential “supply shock,” where limited supply coupled with strong demand could drive prices higher.
Solana ETF Signals Growth Potential in 2025
Solana (SOL) is positioned for significant growth in 2025 despite a recent 7% dip below the €200 mark. Analysts predict that Solana’s price could exceed €400 this year, particularly if the SEC (U.S. Securities and Exchange Commission, responsible for regulating financial markets and protecting investors) approves a U.S.-based Solana ETF (You can check out what ETFs are here).
From the success of Brazil’s first Solana ETF in August 2024 to increasing interest from institutional and retail investors, Solana shows strong potential to outperform Bitcoin and Ethereum in 2025.
Phishing Threat for Over 7 Million OpenSea Users
A 2022 data breach has resurfaced, publicly exposing the email addresses of over 7 million OpenSea users. OpenSea, one of the largest NFT trading platforms in the world, was compromised by an employee of an email delivery vendor who misused their access.
Among the leaked email addresses are those of prominent individuals, companies, and crypto industry leaders, such as former Binance CEO Changpeng “CZ” Zhao. This incident underscores ongoing privacy and security risks in the crypto space.
Experts urge users to verify email sources, avoid clicking on suspicious links, enable two-factor authentication, and never share private keys or sensitive information.
Will Meta Accept the Bitcoin Reserve Proposal?
A shareholder at Meta (the company behind Facebook, Instagram, WhatsApp, and Messenger) has proposed that the company convert part of its $72 billion cash reserves into Bitcoin as a hedge against currency devaluation.
The proposal states: “Mark Zuckerberg named his goats ‘Bitcoin’ and ‘Max.’ Meta director Marc Andreessen has praised Bitcoin and is also a director at Coinbase. Do Meta shareholders not deserve the same kind of responsible asset allocation for the Company that Meta directors and executives likely implement for themselves?”
From Bitcoin’s price drop and record-breaking MicroStrategy purchases to optimism around Solana ETFs and the risks highlighted by OpenSea’s data breach, this week’s crypto news underscores how dynamic the market remains. Stay updated with CryptoUnity next week for the latest developments, and don’t forget to revisit last week’s news to stay fully informed in the crypto space, this week’s crypto news highlights how rapidly the world of digital assets is evolving and the advantage you gain by staying informed. Follow us again next week for fresh updates, and don’t forget to read last week’s crypto news to stay up to date.
