WEB3 UNFOLDED

How crypto projects can establish credibility and what users should look for
The original article is posted on CoinMarketCap.
Web3 is one of the most hyped industries of the last few years. At the same time, it remains one of the most mystified to a common user. Consequently, this brings the lack of trust to the play.
Trust remains one of the biggest hurdles for the industry. But trust isn’t just about regulation – it’s about how projects operate, communicate, and secure their users. 
This article breaks down how crypto projects can establish credibility and what users should check to identify a truly reliable platform.
Where the scepticism roots from
Skepticism surrounding Web3 isn’t about the tech – it’s about execution. Blockchain itself isn’t the problem; it’s how projects handle security, compliance, and usability that determines trust. 
Poor development practices, security flaws, and regulatory gray areas have made mainstream users hesitant, and rightfully so. When smart contracts get exploited for millions, when unclear regulations leave investors stranded, and when crypto interfaces feel like navigating a cockpit, skepticism isn’t just expected—it’s inevitable.
From the other end, regulatory uncertainty keeps institutions at arm’s length, as different jurisdictions enforce fragmented policies. 
Security risks from smart contract exploits make even seasoned users wary of engaging with new protocols. Cumbersome user experiences mean mainstream adoption remains a work in progress. And then there’s market volatility, which, for all its opportunities, can make even the most promising projects look unstable overnight.
Trust isn’t built on promises – it’s built on execution. Until crypto projects prioritize security, transparency, and usability, skepticism will remain a defining force in the market. 
But how to do that properly?
Everything begins at security
With illicit cryptocurrency transactions reaching $46.1 billion in 2023, security and compliance are no longer optional—they’re essential. 
Here comes a rule of thumb: Web3 projects must balance compliance with decentralization to remain credible. 
That means integrating robust KYC/AML processes, ensuring transparent financial reporting, and demonstrating an active compliance to legal standards. While decentralization remains a core principle, operating in regulatory limbo only fuels skepticism.
Security is another non-negotiable pillar of trust. Regular smart contract audits help identify vulnerabilities before they turn into exploits. Multi-signature wallets add an extra layer of protection, preventing unauthorized access and reducing single points of failure. Real-time monitoring systems detect anomalies before they escalate, ensuring users aren’t blindsided by security breaches.
For users and investors, these measures separate serious projects from speculative experiments. 
Let users know why you are trusted
A well-secured, compliant platform doesn’t just reassure regulators. 
Instead, it reassures users that their assets and data won’t vanish overnight. 
Establishing trust in crypto requires a commitment to education and open communication. The complexity of blockchain technology often deters mainstream adoption, making clear and accessible resources essential. 
A well-informed user base is less susceptible to misinformation, security breaches, and impulsive financial decisions.
Leading crypto firms prioritize structured educational initiatives to demystify the industry. 

Coinbase, for example, integrates learning into its platform with Coinbase Earn, rewarding users for engaging with educational content. By simplifying onboarding and maintaining an intuitive interface, it fosters confidence among both retail and institutional investors. 
Similarly, WhiteBIT has built a reputation for transparency, reinforcing trust through third-party audits and verifiable proof of reserves. As one of the exchanges to receive a AAA security rating from CER.live, it actively communicates security measures and fund safety to users. 
At the same time, Binance stands out with its SAFU emergency fund, up and ready to cover the losses of users in cases of exploits, while Bybit utilises a robust multi-signature system for withdrawals.
Crucially, the volume of exchange does not ensure its security. Bybit, while being one of the largest exchanges worldwide, suffered a $1 billion-worth exploit on February 21. According to onchain data, the attacker appears to have gained access to Bybit’s hot wallets. This once again underscores the necessity of cold storage and robust security measures.
What’s more, after the collapse of the infamous FTX exchange, custodial providers have grown in popularity as they provide safe custody of assets, reducing the risk of loss for institutional clients. Many leading exchanges are integrating with custody providers such as Fireblocks to provide an even higher level of security. 
Consistent, open communication also plays a crucial role. Regular updates on development progress and security enhancements provide reassurance to users, preventing speculation and misinformation from taking hold. A majority of trusted exchanges actively engage with their communities through social media, offering clarity on regulatory changes, product updates, and security enhancements.
Trust in crypto isn’t built overnight. It’s a product of continuous education, transparent operations, and active engagement.
Now, for users: how to define a trusted exchange?
First off:
a reliable platform maintains active community engagement, 
regularly updating users on security measures, platform developments, and service enhancements. Transparent leadership – where the team is publicly identifiable and responsive to user concerns – fosters trust and credibility.
Secondly, technical trust signals also play a crucial role. Look for platforms with 
liquidity locks, which prevent sudden fund withdrawals that could indicate fraudulent activity. regular third-party security audits and compliance updates. They demonstrate a commitment to protecting user assets and adhering to industry standards. 
Exchanges with proven fund transparency, such as proof-of-reserves verification, offer additional reassurance.
A strong user protection framework, responsive support, and visible regulatory compliance further differentiate trustworthy exchanges. If an exchange lacks clear information about its security policies, leadership, or liquidity safeguards, consider it a red flag. 

#BybitSecurityBreach

Debunking the true powerhouses behind crypto trading
The original article is posted on CoinMarketCap.

We live in the age of globalisation. 
Nowadays, every aspect of human being is mainly dictated by global tendencies and cross-nation exchange. And the cryptocurrency market is not an exception. 
But which region holds more power upon your trades?
This article dives into the crypto landscapes of three driving forces of digital assets: Europe, Asia, and the USA. Discusses, which is a main trendsetter, and which creates a greater impact. 
But crucially: assesses why geography is everything in crypto, despite its decentralised nature.
Why Market Geography Matters
When it comes to crypto trading, location is everything. 
Market makers, the backbone of trading activity, operate under vastly different conditions depending on where they’re based.
Some regions, particularly emerging economies, see crypto as a way to gain financial independence from traditional banking systems and the US dollar. Others, like the US and Europe, focus on regulatory control and institutional integration. 
Meanwhile, market makers juggle high-speed connectivity, 24/7 operations, and managing multiple exchanges across time zones. Their location ultimately dictates which markets have the most power. 
“Geography is the pulse of crypto”, said Vincent Liu, Chief Investment Officer at Kronos Research, exclusively for the article. “Where a firm operates determines its access to markets, infrastructure, and talent ultimately defining who leads in this industry”.
Cases in point: in the US, its Coinbase dominates liquidity, while in Asia, its local players help fuel the region’s expanding trading influence. 
As crypto continues to globalize, the question isn’t just who’s trading—it’s where the liquidity is being built.

Regional Power Dynamics in the Crypto Market
The crypto market isn’t driven by a single force. It’s a complex intersection between regions, each shaping liquidity, regulation, and adoption in its own way. So, who’s really in control?
United States: Traditional Financial Dominance
When it comes to crypto, the United States operates as both a powerhouse and a paradox. It wields enormous influence through regulatory policies, institutional investors, and USD-backed stablecoins, accounting for 90% of the global stablecoin market cap and 70% of trading volume in Europe.
“The U.S. remains a dominant force in global finance, with USD-backed stablecoins comprising a majority of the global stablecoin market cap, reinforcing crypto’s financial backbone”, believes Vincent Liu. “While the U.S. regional power is becoming more evenly distributed”
Institutional dominance is undeniable. Around 28% of American adults (roughly 65 million people) own crypto, and 73% of US holders plan to continue investing in 2025. The rise of Bitcoin ETFs has further cemented institutional involvement, with significant portions of Bitcoin’s supply being absorbed by funds and asset managers.
Yet, the US market remains surprisingly insular. While home to Coinbase and Kraken, two of the largest regulated exchanges, its exchange landscape lacks a truly global reach. Unlike Asia or Europe, where platforms operate across multiple jurisdictions, the US crypto scene remains largely domestic, limiting its ability to dictate global liquidity flows.
Asia: The Engine of Crypto Supply
Asia isn’t just participating in the crypto market – it applies for leading it. The region, particularly Central & Southern Asia and Oceania (CSAO), dominates global adoption, with seven of the top 20 countries for crypto usage located here. 
“Asia’s stock and crypto businesses thrive due to its liquidity and retail momentum,” says Vincent Liu. 
Indeed: unlike the US and Europe, which have seen declining retail engagement, Asia’s retail activity continues to surge, growing 6.4% year-over-year, while the US and EU dropped by -5.7% and -0.7%, respectively. 
Even with China’s regulatory crackdowns, the country once controlled 70% of global crypto mining power, showcasing the region’s deep-rooted influence. Meanwhile, Asian exchanges set the tone for global liquidity, with Binance, OKX, and Bybit shaping trading volume across borders.
With institutional flows concentrated in the US, Asia has become the real supplier of market depth and liquidity, making it the bedrock of global crypto trading.
“We see Asia emerging as a macroeconomic hub through its critical role in global trading volume underpinning even Europe’s markets and its capacity to merge regulatory flexibility with a vibrant investor community”, summarises Liu.
Europe: A Regulatory Powerhouse with Limited Market Impact
Europe has emerged as the global leader in crypto regulation, setting the standard with MiCAR, a framework designed to bring clarity to digital asset oversight. 
“Europe’s MiCA is redefining the global crypto market by establishing regulatory clarity”, says Liu. “We see it enhancing trust and institutional adoption, though its strict stablecoin rules pulling liquidity toward Asia and less-regulated hubs, altering the global balance.”
While this regulatory stability attracts institutional interest, Europe still lacks true market dominance, as US-based crypto issuers and intermediaries continue to shape its financial landscape.
Despite this, the region has seen explosive growth in crypto investment products – assets under management in ETPs surged from $600 million to $16 billion, with Bitcoin (54%) and Ethereum (15%) leading investor preferences. However, trading volumes remain lower than in the US and Asia, limiting its overall influence.
Europe also depends heavily on Asian exchanges for liquidity, with Binance, OKX, and Bybit facilitating much of the region’s trade. 
A Power Play of Regions
The global crypto market operates as an interconnected ecosystem, where each region’s strengths contribute to the industry's overall evolution. Asia’s deep liquidity and retail adoption create the foundation for active market participation, while North America's institutional influence legitimizes crypto as an asset class. Meanwhile, Europe’s regulatory leadership ensures long-term stability and investor protection.
However, beyond adoption rates and trading activity, virtual capitalisation remains a defining factor in assessing regional dominance. One of the recent articles, analyzing Trump’s impact on crypto volatility, examined the fluctuations in exchange capitalizations following major economic shifts. The results were clear: capital flow is not just reactive – it is directly influenced by regional regulatory policies and supply dynamics.
The exchanges that performed best in terms of stability and liquidity reflected their respective region’s core strengths. Coinbase (North America) maintained high institutional inflows despite regulatory pressure, Binance and OKX (Asia) continued to dominate in volume, benefiting from deep liquidity pools, while WhiteBIT (Europe) reinforced its position as the region’s leading exchange with a strong regulatory focus.
Crucially, according to the formula by Aaron Watts, the aforementioned exchanges vastly differ in terms of the virtual capitalisations, reflecting a power distribution between regions:
Binance (Asia): $170 billion (from $220 billion in December 2024)WhiteBIT: $30 billion (from $38.9 billion in December 2024)Coinbase: $64 billion (from $81 billion in December 2024)
This highlights a critical takeaway: regional policies and crypto supply mechanisms have a direct impact on exchange capitalization. Markets with clear regulatory frameworks attract institutional trust, while those with strong liquidity mechanisms sustain high trading volumes. Ultimately, the interplay between regulation, supply, and capital flow determines which regions hold the most influence.
Understanding these regional dynamics is essential for traders and investors seeking to navigate an increasingly complex and interdependent market. Those who recognize these patterns will be better positioned to anticipate market trends and allocate capital effectively.

#BinanceAirdropAlert #TradeFiRevolution #GeopoliticalImpactOnBTC

Explaining what’s under the hood of a crypto exchange provider
The original article is posted on CoinMarketCap.

Behind the seamless execution of trades and the flashing order books lies a complex system that keeps crypto exchanges alive. 
Buying and selling is just a tip of the iceberg. But what truly fuels the digital trading world? 
The article is discovering behind-the-curtain sides of crypto exchanges, diving into three pillars of a modern digital asset operator: transaction fees, pools, and liquidity providers. 
What Liquidity (Does Not) Mean For Exchanges
First and foremost: if an exchange is small, it does not mean it is unsustainable. The market position of a digital asset operator is primarily determined not by its trading volume, but by the exchange’s capacity for it. 
What is even more decisive: the success is measured by the quality of addressing the needs of its target audience. The ones primarily include average transactional costs and liquidity.
Taking a look at five exchanges reveals that the more liquidity is required, the more additional providers it enrolls. And vice versa. 

Each of the different operators is diverse by trading volume and, respectively, the available toolkits to ensure ‘smooth’ trading. Namely, while Gemini and Kraken are sustained by the institutional investors, WhiteBIT with its larger volume brings its own mining pool into play apart from traditional liquidity providers,
On the other hand, what unifies all of the exchanges is the transactional structure. And one is a matter of a deeper unit economy understanding. 
The Economics of Transaction Fees 
Transaction fees are the backbone of any cryptocurrency exchange. They serve as a crucial revenue stream while simultaneously shaping user behavior, market liquidity, and overall trading efficiency. But how exactly do exchanges determine these fees, and what strategies do they use to remain competitive?
Most crypto exchanges use a tiered maker-taker fee structure, where traders pay different fees depending on their role in the market. Makers (those who add liquidity by placing limit orders) usually enjoy lower fees or even rebates, while takers (who remove liquidity by executing market orders) pay slightly higher rates. These fees typically range between 0.05% to 0.25% of the transaction volume, with reductions for high-volume traders.
This model benefits both users and exchanges: traders enjoy lower costs as their volume increases, while exchanges encourage liquidity and deeper order books. Institutional investors and whales particularly benefit from this structure, as they move large sums across markets and demand competitive pricing.
Exchanges constantly fine-tune their fee systems to balance revenue generation with user retention. Several strategies are key:
Dynamic Fees – Some platforms adjust fees in real-time based on market conditions, trading volumes, and network congestion. This ensures they remain attractive to traders while optimizing revenue.VIP & Loyalty Programs – High-frequency traders often gain access to VIP tiers, reducing their fees as a reward for volume. Some platforms also provide additional incentives like exclusive trading tools and priority customer support.Native Token Discounts – Many exchanges issue native tokens, which can be used to reduce fees—sometimes by as much as 25%. This creates an ecosystem where holding the exchange’s token becomes beneficial for regular traders.Alternative Revenue Streams – Beyond transaction fees, successful exchanges diversify their income through margin trading, staking services, lending protocols, and liquidity partnerships. This ensures financial sustainability even during periods of low market volatility.
As crypto trading evolves, so will fee structures. Competition between exchanges is pushing platforms to lower fees, introduce more innovative pricing models, and integrate decentralized finance (DeFi) solutions. The challenge lies in balancing sustainability with affordability, ensuring that exchanges remain profitable while keeping traders engaged.
Mining Pools As Liquidity Sources
Mining pools have long been an essential part of the cryptocurrency landscape, ensuring the steady creation of new digital assets. However, their role has expanded far beyond mere block validation—today, they function as key liquidity providers for crypto exchanges, opening up a whole new vector of exchange services. 
At their core, mining pools aggregate computational power from multiple participants to increase the probability of successfully mining new blocks. Once these blocks are validated, the newly created assets are distributed among miners and often funneled directly into exchanges. This structured distribution process ensures a consistent supply of tradable assets, reducing liquidity shortages and improving overall market efficiency.
The main gig is: by regularly supplying assets to the market, mining pools contribute to deeper order books and minimize slippage in trading pairs. They also function as natural market makers, consistently selling mined assets to cover operational costs, which further enhances exchange liquidity.
Liquidity: The Driving Force of an Exchange
All the aforementioned aspects contribute to one and only concept that sustains any crypto exchange: liquidity. Henceforth, they act as liquidity providers, but ones are not limited to the pools and proper transactional framework.
At their core, liquidity providers function as market makers, continuously placing buy and sell orders to keep trading pairs active. Their operations rely on sophisticated algorithmic strategies, which dynamically adjust supply and demand to prevent extreme price fluctuations. These providers operate across both centralized exchanges (CEXs) and decentralized platforms (DEXs), ensuring that users experience minimal slippage and tighter bid-ask spreads.
On centralized exchanges, institutional-grade market makers deploy deep liquidity pools, ensuring that even high-volume trades are executed smoothly. These firms utilize advanced hedging techniques to mitigate risks while providing a steady stream of tradable assets. In contrast, decentralized exchanges rely on Automated Market Makers (AMMs), where liquidity pools enable token swaps without the need for traditional order books. In this model, individual users can contribute assets to these pools and earn passive rewards, democratizing the role of liquidity provision.
The presence of strong liquidity providers has a direct impact on market stability. By maintaining balanced order books, they prevent sudden price spikes and crashes, creating a more predictable trading environment. Their influence extends beyond just market health—exchanges also benefit financially from the increased trading volumes and transaction fees that liquidity providers facilitate. The faster trade execution enabled by ample liquidity enhances user experience, reducing frustration associated with volatile spreads or slow transactions.
Conclusion: What Brings Exchanges to Life
Transaction fees, mining pools, and liquidity providers – all these elements work in tandem to ensure smooth operations, market stability, and user engagement, making digital asset platforms viable financial ecosystems.
Together, these forces shape the efficiency and resilience of crypto exchanges, determining their long-term sustainability. As the industry matures, innovations in fee structures, liquidity management, and decentralized finance integrations will continue to redefine the space. 
The future belongs to platforms that can strike the perfect balance between competitive pricing, deep liquidity, and robust market-making strategies—ensuring that traders, investors, and institutions can operate with confidence in an ever-evolving digital economy.

#TradeFiRevolution

Breaking down the data behind the most optimistic forecasts.
The original article is posted on CoinMarketCap.
While Bitcoin price has seen a notable decrease since Trump’s controversial tariffs policies, the optimism in the first cryptocurrency never fades. But what is the basis for it?
Many point to the changing political and economic landscape as a catalyst, with Donald Trump’s return to the White House being a key driver of speculation.
Trump’s pro-crypto rhetoric, including his bold plans for a U.S. Bitcoin reserve has fueled market enthusiasm and rekindled debates about Bitcoin’s long-term potential. 
In this article, we’ll explore the most ambitious Bitcoin predictions, analyze the rationale behind them, and evaluate whether the Trump administration’s crypto-friendly stance could be the game-changer that propels Bitcoin to unprecedented heights – or if such projections remain wishful thinking.
“March Effect” 
One of the standout projections comes from Trader Tardigrade, who suggests Bitcoin could soar to $170,000 by the end of March 2025. This ambitious target stems from an analysis of historical patterns. 
Back in January 2024, bitcoin suffered a sharp decline before mounting an impressive recovery, leading to significant gains by March. A similar trend appears to be unfolding in January 2025, sparking hopes of a repeat performance.
This very “March Effect”, as this tendency is often dubbed by the investors, has also caught the eye of TradingShot, who notes a recurring trend during bitcoin’s last four bull cycles. In these cycles, January often marks a pivotal consolidation phase, with bitcoin finding support near or below its 100-day moving average. Once bitcoin breaks above this critical level, the moving average becomes a new support, fueling further momentum.
Markus Thielen of 10x Research adds another layer of credibility to these forecasts, emphasizing the consistency of bitcoin’s historical price movements. 
BTC/USDT chart by Markus Thielen. Source: NewsBTC TradingView
His analysis suggests a $122,000 target in the near term, followed by a period of consolidation—a familiar phase in bitcoin’s cycle where prices stabilize before the next breakout. For savvy investors, this could mean fresh opportunities to enter the market at more favorable levels.
2025 As A Decision-Breaker
Yet, some experts are looking even further ahead. Tom Lee, co-founder of Fundstrat, predicts bitcoin could climb to an astonishing $250,000 within the next 12 months. He attributes this potential rally to the halving event, a historic catalyst that reduces bitcoin’s supply and typically drives prices higher.
Meanwhile, veteran trader Peter Brandt, who initially forecasted a peak of $120,000 for this cycle, has revised his prediction upward to $200,000, citing bitcoin’s robust performance and evolving market dynamics.
BTC/USD 3D chart. Source: Peter Brandt/X
As bitcoin marches toward these lofty targets, one thing remains clear: 2025 could mark a transformative year for the cryptocurrency, driven by historical patterns, market fundamentals, and an enduring belief in its potential. Whether bitcoin will hit these staggering highs is yet to be seen, but the optimism coursing through the industry is undeniably real.
This sparks a whole other layer of debate, which stretches out decades away from the starting point of this analysis. Hence, bitcoin predictions become vaguer, yet at the same time – way bolder. 
Taking Over Strategic Reserves
In January, bitcoin surge to a record-breaking $107,000 was mainly buoyed by President-elect Donald Trump’s reaffirmation of plans for a U.S. bitcoin strategic reserve – akin to the nation’s oil reserves. This bold policy proposal has not only fueled domestic optimism but also amplified global interest in bitcoin as a strategic asset.
Currently, 13 nations hold bitcoin in their reserves, with the U.K. storing approximately 61,200 BTC and the U.S. government boasting a staggering 198,109 bitcoins. Many countries see these reserves as a safeguard against inflation and economic volatility, reflecting bitcoin's emerging role as a global financial hedge.
Domestically, this sentiment is gaining traction, with 13 U.S. states actively exploring or proposing legislation to establish state-level bitcoin reserves. Adding to the momentum, over 60% of bitcoin’s hashrate now operates from North American mining facilities, highlighting the region's growing dominance in the cryptocurrency ecosystem.
Brian Armstrong, CEO of another top exchange Coinbase, expresses an identical stance. At 2025 Davos World Economic Forum, he exalted bitcoin over gold in terms of greater and clearer scarcity, portability, and divisibility. 
Long-Term Shots
While the optimism about bitcoin’s price is a matter of solidarity among different actors, the target price is seen differently. 
Chamath Palihapitiya, founder and CEO of Social Capital, predicts Bitcoin will reach $1 million by 2040—a valuation driven by his confidence in its long-term adoption and scarcity.
This is a modest goal for Volodymyr Nosov, founder and CEO of the largest European exchange WhiteBIT:
“$500,000 per bitcoin is not the limit. I'm focusing on $3 million,” he said in a recent interview.
The potential for bitcoin to achieve this goal lies in its limited emission, the founder says. 
“The number of bitcoins is limited, they have a limited issue. There will be only 21 million in total. Almost 20 million bitcoins have been mined so far, with only one million left. According to the mathematical model, the last bitcoins will be mined by 2040, but their production will be insignificant. Miners will receive the main income from transactional activities, i.e. from ensuring the functioning of the network.”
For those seeking shorter-term benchmarks, the well-known analyst Cobravanguard exclusively for the article offers a more immediate target of $300,000 by the end of 2026. His analysis points to a head-and-shoulders pattern emerging on Bitcoin’s weekly BTC/USDT chart, signaling a move towards sustained upward momentum.
BTC/USDT 1W chart. Credit: Cobravanguard
On the far end of the speculative scale, Jurrien Timmer, Director of Global Macro at Fidelity Investments, proposes an eye-popping forecast: a single Bitcoin valued at $1 billion by 2038–2040. While this might seem implausible to some, Timmer’s macroeconomic perspective underscores Bitcoin's potential as a dominant global asset.
The diverse range of predictions underscores Bitcoin’s growing appeal across varying investment horizons, from tactical short-term plays to audacious long-term visions.
So, will Bitcoin hit $3 million in ten years?
The truth? It depends on who you ask—and which factors dominate the next decade. Bitcoin’s deflationary design, growing institutional adoption, and its increasing role as a hedge against inflation all point to a potential climb toward record-breaking heights. Advocates of the multimillion targets argue that it’s not a matter of if but when, especially as geopolitical shifts and economic instability continue to challenge the traditional financial system.
But let’s not overlook the caveats. Achieving such a valuation would require Bitcoin’s market cap to exceed $60 trillion—roughly three times the entire U.S. stock market’s current size. That level of growth demands unprecedented adoption, flawless scalability, and the absence of any major regulatory roadblocks. In a space as volatile as crypto, where fortunes are made and lost overnight, even the most bullish forecasts must contend with an equal measure of uncertainty.
So, will Bitcoin hit $3 million in the next 10 years? Perhaps—but it won’t happen without some seismic shifts. Whether it’s a global financial overhaul, the mainstreaming of crypto assets, or the advent of an entirely new monetary paradigm, Bitcoin’s journey to $3 million will be anything but linear. And if there’s one thing the crypto market loves, it’s defying expectations.
#GeopoliticalImpactOnBTC $BTC

Analyzing the real impact of Trump’s pro-crypto policies on crypto industry and exchanges
The original article is published on CoinMarketCap.
“What sets this year apart is the somewhat unexpected timing of volatility,” believes JPMorgan’s Eddie Wen. 
Indeed, since Trump took office, the volatility in the market has been notoriously high within the local trend. The potential reasons for this – Trump’s tariffs and recent market shake-offs. 
Crypto Volatility Index (CVI). Source: TradingView

As markets adjust to the political shift, the fundamental question remains: Is Trump’s presidency a turning point for crypto legitimacy, or does it mark the beginning of a new era of politically-driven speculation?
When It’s All Began
The market’s volatility was evident even before Trump officially took office.
Following his election victory, Bitcoin surged from $68,000 in November 2024 to over $100,000 by December. This so-called “Trump Bump” injected nearly $2 trillion into the crypto market, pushing total capitalization to a record $3.29 trillion. To sum up: while investors were expecting a pro-business administration, they drove one of the fastest rallies in history.
Days before inauguration, Trump and his family launched meme coins, $TRUMP and $MELANIA. The $TRUMP token skyrocketed from $3 to $70, reaching a $14 billion market cap. However, 80% of its supply is reportedly controlled by Trump-affiliated entities, fueling manipulation concerns.
The numbers, however, reveal a more complicated picture: 80% of the supply is reportedly controlled by Trump-affiliated entities, raising concerns over market manipulation. What is more, according to Coinbase chief product officer Conor Grogan, Trump could have made more than $800 million from his token.
The lack of transparency in ownership and potential price engineering raise questions about whether his administration’s crypto stance is driven by policy—or personal financial gain.
Trade War Shake-Off
The Trump administration’s latest trade tariffs have rattled global markets, with cryptocurrencies bearing the brunt of the impact. 
A 25% tariff on Canadian and Mexican imports, a 10% levy on Chinese goods, and potential duties on European exports have heightened economic tensions. In response, Canada enacted immediate countermeasures, while China and Mexico prepared retaliatory actions, fueling uncertainty.
The crypto market reacted sharply, with Bitcoin dropping nearly 14% to a low of $91,441 before stabilizing above $94,000. Ethereum plunged 24%, hitting its weakest point since September, while XRP and Dogecoin lost over 30%. 
Notably, Trump-related tokens also fell, with the Official Trump Coin down 15% and Melania Trump’s meme coin slipping 12%. Liquidations surged, wiping out $2 billion in leveraged positions within 24 hours. Meanwhile, crypto stocks, including Coinbase and MicroStrategy, dropped over 5%, underscoring the sector’s exposure to shifting economic policies.

How Trump Took Over Market Volatility
The latest tariff-induced market turbulence has deepened volatility across the cryptocurrency landscape, as institutional traders and analysts grapple with shifting economic conditions. 
A JPMorgan report now identifies inflation and tariffs as the primary market drivers for 2025, while 41% of traders cite heightened volatility as their biggest challenge—up from 28% last year. 
What sets this year apart is the somewhat unexpected timing of volatility,” said Eddie Wen, JPMorgan’s global head of digital markets, in an interview to Bloomberg. “Markets are reacting to news headlines in surprising ways, and I expect this trend to continue in the current climate.”
What is more, with the S&P 500’s potential for a 5-10% decline, David Kostin, a strategist at Goldman Sachs, warns of further pressure on crypto assets.
Remarkably, trading volumes have surged, particularly in currencies linked to Trump’s tariff targets—Canada’s dollar, Mexico’s peso, and China’s yuan—underscoring the broader financial spillover. 
The impact touched cryptocurrency exchanges as well – yet conversely. Since December 20, 2024, the trading volumes of the leading crypto operators plummeted at least 20%. Namely, on February 7, Binance saw a 23% drop, U.S.-based Coinbase – 29.1%, while EU-centred WhiteBIT – 21.3% in the last 24 hours, according to CoinGecko.
This broadly reflected on crypto exchanges’ virtual capitalisation, as per the formula by CoinCodex’s Adam Watts. As it directly stems from the average trading volume, this by far may pin Trump’s factual controversies between his pro-Web3 political agenda and actual impact.
Thus, according to the formula, which derives from Coinbase’s market value ($68 billion as of February 7), since Trump took office, the virtual capitalisation of the top exchanges has endured following drops:
Binance: $170 billion (from $220 billion in December 2024)Bybit: $32 billion (from $43.9 billion in December 2024)WhiteBIT: $30 billion (from $38.9 billion in December 2024)Kraken: $9 billion (from $13 billion in December 2024) 
This indicates that despite the announced efforts to streamline crypto into mass adoption, Trump’s factual stance may cause a contrary effect – specifically, through weakening a digital operator niche while spurring outflows and restraining potential trading operations. In a nutshell – plummeting the core drivers of the nowadays Web3-businesses, as well as injecting volatility to increase the risks and, henceforth, sending a mixed message to the crypto enthusiasts. 
One Man In Charge Of It All
Once considered a hedge against economic instability, digital assets are now increasingly reactive to geopolitical and macroeconomic developments. And, undoubtedly, Trump’s administration sees the perspective clear. 
This comes as an even louder precedent with crushing the functional operability of the leading crypto exchanges by getting their virtual cap diminished, which remains the main source and transmitter of liquidity into the Web3 industry. Should this mechanism plummet, blockchain-oriented businesses should lose their touch not only with users, but with their core investors.
Each Trump decision seems to plummet the market, while another one puts a healing patch upon it. This underlines that in the age of global wealth redistribution, market volatility is becoming the core of Trump's policy – but not the initial tech incentivisation, as one stated. 
The only question is: will it strengthen the politically-driven speculation globally, or is Trump taking a solo charge upon it? 
#BinanceAirdropAlert #Vote-PIOnBinanceYesOrNo #GeopoliticalImpactOnBTC $BTC