Market Overview:
The current sentiment index of the crypto market is 57, in a neutral range. This indicates a balanced overall mindset among investors, with neither extreme panic nor excessive greed.
Today's headlines:
1. El Salvador discusses Bitcoin cooperation with the United States
Salvadoran President Bukele met with White House Digital Assets Executive Director Bo Hines to discuss Bitcoin and digital asset cooperation. Despite Bitcoin no longer being legal tender since February 2025, El Salvador continues to increase its holdings, with the latest position reaching 6,197.18 BTC, valued at approximately $659 million.
Impact analysis: This meeting is expected to promote cooperation between the two countries in the crypto field and may influence policy choices in other countries. Despite pressure from the IMF, El Salvador remains steadfast in holding Bitcoin, demonstrating its confidence in crypto assets.
2. Treasure Global launches a $100 million crypto treasury strategy
NASDAQ-listed e-commerce platform Treasure Global announces the launch of a $100 million digital asset treasury strategy, purchasing Bitcoin, Ethereum, and stablecoins, funded by $50 million in equity financing and $50 million in institutional commitments.
Impact analysis: This move shows institutional recognition of crypto assets, likely boosting market confidence and driving price increases, in line with the trend of corporate treasury diversification.
3. Circle raises $1.1 billion in IPO financing, exceeding expectations
Stablecoin issuer Circle raised $1.1 billion through an IPO, issuing 34 million shares at $31 each, surpassing the $896 million target, with a market cap expected to reach $6.9 billion.
Impact analysis: Circle's successful IPO demonstrates market recognition of stablecoins, likely fostering broader adoption and regulatory clarity, further solidifying the stablecoin market position.
4. Ethereum Foundation announces treasury management policy
The Ethereum Foundation announced that the treasury's annual expenditure goal for 2025 is 15%, maintaining a 2.5-year operational buffer, gradually reducing to 5% over the next five years, with a focus on supporting DeFi and privacy projects.
Impact analysis: This policy helps ensure the long-term sustainable development of the Ethereum ecosystem, enhancing investor confidence.
In-depth interpretation: Ethereum Foundation Treasury Policy
The Ethereum Foundation has announced its latest treasury management policy, aimed at ensuring financial stability and alignment with Ethereum's core values. Key policy points are as follows:
- Annual expenditure: Current operating expenses account for 15% of the treasury, maintaining a 2.5-year operational buffer, reflecting the critical importance of 2025-26 for Ethereum.
- Five-year plan: Over the next five years, the annual expenditure ratio will be reduced to 5%, drawing on a donor fund model for long-term capital management.
- Asset management: Prioritize earning returns through secure DeFi protocols, supporting decentralized, open-source, and positive-sum projects.
- Ethereum sales: Regularly sell ETH to maintain operational buffers, with funds used for independent staking and wETH lending to enhance network security and returns.
- Fiat management: Fiat assets are categorized into three types: instant liquidity, liability-matched reserves, and RWA (real-world assets), ensuring liquidity and stability.
- Transparency: Reports will be published quarterly and annually to disclose performance and holdings, enhancing community trust.
- Defipunk Standard: Prioritize supporting privacy and decentralization projects, adhering to Ethereum's 'cyberpunk' spirit.
Core conclusion:
- Reduce annual expenditure to 5% within five years to ensure long-term sustainability.
- Participate in earning returns through DeFi, benefiting the Ethereum ecosystem.
- Regularly disclose financial status to ensure community transparency and trust.
- Focus on privacy and decentralization, adhering to the original intention of Ethereum.
- Set a responsible treasury management model for the crypto industry.
Wishing you successful trading and always remember to DYOR!
