- Sebastjan Bele
- Updated: February 17, 2025
- Reading time: 7 min
U.S. Inflation Rises to 3%, Trump Pushes for Cuts, Klarna Eyes Crypto, and Uniswap Launches L2
U.S. inflation climbed to 3% in January, reinforcing expectations that the Federal Reserve will extend its pause on interest rate cuts. Meanwhile, Trump continues to push for lower rates, adding pressure on policymakers.
European payments giant Klarna announced plans to integrate crypto, signaling further mainstream adoption. Berachain (BERA) mainnet officially launched, with an airdrop allocation fueling excitement among early adopters. Meanwhile, Uniswap introduced Unichain, a new Layer 2 network designed to be the home for DeFi and cross-chain liquidity, further expanding its ecosystem.
News:
- Disappointing U.S. CPI Data Sends Bitcoin Tumbling Below $95K
- European Payments Giant Klarna Says It Will Look To Integrate Crypto
- Uniswap Labs releases Unichain on mainnet: ‘We’re entering a cross-chain world’ says Hayden Adams
- Strategy resumes bitcoin acquisitions with $742 million buy, bringing its total holdings to 478,740 BTC
- Binance and SEC file joint motion to halt legal dispute for 60 days
- Fed’s Waller says banks, non-banks should be allowed to issue stablecoins
- Trump picks former Bitfury exec Jonathan Gould to lead the OCC, signaling ongoing shift to crypto-friendly regulators
- Robinhood shares surge as Q4 crypto revenue jumps 700%
- Trading volume across graduated pump.fun tokens hits lowest average daily volumes since Christmas
- BitGo plans to go public as early as Q2 2025
Table of Contents
Markets
Best Performers
This week’s top performer is PancakeSwap (CAKE), which surged over 100% as renewed interest in the platform drove a wave of activity. The boost comes after PancakeSwap’s revenue-sharing program, which distributed 770,527 CAKE last year and burned over 172,000 CAKE, reinforcing the platform’s long-term sustainability.
Another key factor behind CAKE’s rise is the strong performance of Binance Coin (BNB), which climbed 21.63% in the past week, further fueling demand for CAKE and its ecosystem.
Chain Volumes
Volume continues to drop across the board, with Hyperliquid seeing the steepest decline at -55.43%. Ethereum (-37.42%) and Arbitrum (-40.98%) also experienced significant drops, reflecting a broader cooldown in trading activity.
Amid the downturn, BSC is holding relatively well, posting a comparatively mild -11.03% decline, showing resilience despite the market-wide slowdown.
Meanwhile, Solana remains the undisputed leader, commanding 30.09% of total trading volume across chains, cementing its dominance in on-chain activity even as volumes shrink.
US Spot ETF Balances
US Bitcoin Spot ETFs
Current weekly inflows = -$251 million
Total Assets Under Management (AUM) = $111.036 billion
US Ethereum Spot ETFs
Current weekly inflows = -$40.9 million
Total Assets Under Management (AUM) = $10.134 billion
Market Commentary
The U.S. inflation rate came in at 3%, slightly above the expected 2.9%, triggering a mild dip across markets. Meanwhile, spot trading volume on major centralized exchanges dropped by 25% in January, reflecting lower activity compared to December.
Fed Chairman Jerome Powell reaffirmed that the Fed is in no rush to cut interest rates, despite pressure from Trump to lower U.S. borrowing costs. Powell emphasized that while inflation has eased significantly, it remains high, and with the economy still strong, there is no urgent need to adjust policy.
On the Bitcoin front, BTC is currently trading around $95K, with price remaining largely unchanged over the past week. The market is stuck in a no man’s land, making it difficult to take clear positions. Typically, traders prefer buying at range lows or selling at range highs, but BTC is sitting in the middle, offering little directional clarity.
On the supply side, Bitwise reports that 69% of BTC is now held by individuals, further tightening supply for large institutional buyers. With liquidity drying up, any spike in demand could lead to significant price moves in the coming months.
Meanwhile, Bitcoin dominance stands at 59.9%, reinforcing BTC’s position as the market leader amid stagnant price action. The total crypto market cap is at $3.19 trillion, while the Fear & Greed Index sits at 40 (Neutral), signaling a market in wait-and-see mode.
What’s Next?
As mentioned in our previous update, Trump’s main objective is to push for lower interest rates, but Fed Chairman Powell remains firm, stating that the Fed is in no rush to cut rates despite mounting pressure. While monetary policy is now looser than before, inflation—though closer to the 2% target—remains elevated, and with the U.S. economy still strong, there is no immediate need to adjust the stance.
BTC volatility is now skewed in favor of puts until April, signaling a lack of strong upside catalysts in the short term. A feedback loop is emerging, with Trump, highly sensitive to market reactions, now facing investors who are increasingly calling his bluff on economic promises. The broader market reflects this sentiment—nearly 70% of coins are now trading lower than their pre-U.S. election levels. Meme coins, once a dominant narrative, have seen a significant decline, suggesting a potential market shift away from speculation-driven assets.
Looking ahead, uncertainty remains high, as both traditional finance and crypto markets keep a close watch on regulatory developments, government policies, and tariffs. With no clear direction, the coming weeks will be pivotal in shaping the market’s next major move.
Meme of the Week
We hope you enjoyed this week’s edition of Diary of a Market Maker! Stay tuned for more insights, updates, and market-moving highlights as we continue to keep you informed and entertained in the ever-evolving world of crypto.
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Until next time, happy trading and stay ahead of the curve!
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, investment, or other professional advice. All opinions expressed herein are solely those of the author and do not represent the views or opinions of any entity with which the author may be associated. Investing in financial markets involves risk, including the potential loss of principal. Readers should perform their own research and consult with a licensed financial advisor before making any investment decisions. Past performance is not indicative of future results.
Jakob Brezigar
Jakob, an experienced specialist in the field of cryptocurrency market making, boasts an extensive international presence. With Orcabay, he has skillfully managed major operations and deals for a wide array of global stakeholders.
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