Major corrections raises concerns

Every week, Amdax summarizes what’s happening in the crypto market for you. Want to dive deeper? Click on the links in this email for more insights.

This newsletter is a co-production with our partner, Bitcoin Alpha.    

Market update

Stay informed in three steps:

1. Bitcoin enters a steep decline
For the first time since May, Bitcoin closed the week below one hundred thousand dollars. The downturn aligns with a heavy drop in equity markets and is therefore felt across the broader financial landscape. With this key psychological threshold now broken, doubts are emerging about whether Bitcoin still remains in a sustained bull market.

2. Macroeconomic uncertainty persists, but may be nearing resolution
The recent shutdown of the United States government halted the publication of official inflation data and labour market figures for several weeks. As a result, risk markets were effectively navigating without reliable economic indicators, relying instead on previously established momentum. The shutdown ended last week, and new data releases are now on the horizon. This should provide greater clarity in an otherwise uncertain macroeconomic environment.

3. Altcoins demonstrate unexpected strength
Despite Bitcoin’s decline, the altcoin sector has shown notable resilience. In periods of market stress, higher risk altcoins typically fall more sharply than Bitcoin, yet Bitcoin is currently losing market share instead. This dynamic is encouraging and suggests that crypto investors are not broadly positioning for an imminent end to the bull market.

News overview

The key headlines from this week:

• America gives crypto funds the green light to stake. Treasury Secretary Scott Bessent announced the decision on Monday. Funds are now allowed to lock up their acquired assets for staking provided they hold only one coin, use a qualified custodian and ensure that investors can always redeem their shares. For ETF issuers, the move provides important clarity. Staking is now officially recognised as a legitimate and tax efficient source of yield.
   
• Michael Saylor dismisses rumours about an alleged sale by Strategy. Social media was filled with claims that Strategy had liquidated part of its bitcoin holdings. The rumoured amount was almost 47,000 BTC. According to Saylor, none of it is true. To reinforce that message, the Strategy chief executive appeared on CNBC to give an explanation. He stated that the company has actually accelerated its purchases. More information is expected to be released on Monday.
   
• Canary’s XRP ETF, ticker XRPC, surges out of the gate. The fund launched on November 13th and recorded more than 58 million dollars in trading volume on its first day. According to Bloomberg analyst Eric Balchunas, it is the strongest ETF debut of 2025. XRPC takes the lead from the Solana fund by Bitwise, which set a record in October. The launch coincided with more than 1 billion dollars in outflows from bitcoin and ether funds.
   
• Central bank of the Czech Republic experiments with bitcoin purchases. The Česká národní banka invested roughly 1 million dollars in an experimental portfolio consisting of bitcoin and stablecoins. The initiative takes place outside its official reserves and serves as a learning programme for managing digital assets. Some analysts call it a notable signal. Even central banks now want to understand how to manage bitcoin.

Amdax's take

Bitcoin is undergoing one of its largest corrections in quite some time. The price is now nearly 30% below its all-time high, and overall market sentiment appears to have bottomed out. Despite this, a sharper downturn in altcoins has not materialized. Moreover, history shows that a constructive shift in macroeconomic data can quickly turn the tide. All things considered, there are still plenty of indicators suggesting that optimism for a positive quarter is not misplaced.