Planting Coins: 02/25

Management Summary

• January was dominated by the launch of the Trump Coin.
• Bitcoin consolidates slightly above USD 100k, while altcoins performed mixed.
• While Bitcoin outflows from crypto exchanges continue, ETH outflows stabilized.

What is the crypto investing series? 

This blog post is the second report in 2025 about the Kaleido Digital Asset Core (KDAC) Strategy. Read more about our crypto portfolio framework here. Don't forget to sign up to our newsletter to get the next reporting straight in your mailbox! 

The Latest Meme Coin Frenzy

The crypto market got off to a dynamic start to the new year, driven by Bitcoin's new highs and speculative hype surrounding the TRUMP meme coin. After a strong end to the year, Bitcoin continued its upward trend and gained 10% in January, ending the month at USD 102'400. The initially cautious market sentiment brightened, fueled by optimism surrounding the new US administration and rising institutional interest in Bitcoin.

KDAC Strategy Closing January Slightly Positive

While Bitcoin continued to consolidate its role as the leading digital asset, Ethereum and other altcoins showed a mixed performance. Ethereum largely stagnated and closed January down slightly by 1% at USD 3'300. Despite the positive trend in the overall market, Ethereum's network activity declined, with decreasing daily transactions and fewer active addresses. Overall, the total market capitalization of cryptocurrencies increased by 4.0% to $3.61 trillion, reflecting continued investor interest despite some market volatility. Strongest performer in January were Chainlink and Solana which gained 26%, and 22% respectively.

Bitcoin Dominance Trending Higher Again

A key event of the month was the launch of the TRUMP meme coin, which was announced by Donald Trump himself on January 17. The token rallied rapidly, reaching a high of more than USD 73 with a market capitalization of around USD 15 billion, before falling again following the release of Melania Trump's own token. Typically, many providers listed the coin close to its high at around USD 60. The meme coin hype once again demonstrated the speculative nature of the crypto market and the enormous market power of prominent personalities. The KDAC strategy benefited indirectly from the exposure to Solana, which was the underlying protocol for the token issue.

Fear & Greed Index Closing the Month in the Neutral Area

These developments were also reflected in on-chain data and market sentiment. The Fear & Greed Index fell from its December highs and stabilized at a more neutral level of 54, indicating more moderate investor sentiment. Bitcoin withdrawals from exchanges remained steady, indicating continued strong spot demand. Ethereum outflows, on the other hand, have stabilized, while uncertainty about the future development of the network continues.

Bitcoin Exchange Withdrawals Remain Steady

Ether Outflows from Exchange Stabilizing

Looking ahead to the coming weeks, macroeconomic factors remain crucial for the crypto markets. The market will be watching closely how Trump's decisions on tariffs, in particular, impact prices on the latest inflation data, PMI figures and unemployment figures. Despite the existing uncertainties, the overall market outlook remains cautiously optimistic as the growing Bitcoin dominance - which is slowly approaching its cycle peak - is a stabilizing force amid the ongoing altcoin volatility.

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