SOTM January 23-29, 2025

Welcome to our 206th issue of State of the Market, where we provide an overview of crypto market activity from January 23 – January 29, 2025.

This week in crypto markets:

• DeepSeek’s low-cost AI model raised concerns over hardware demand, pressuring technology stocks, crypto markets and the AI token sector.
• The Federal Reserve held rates steady and softened its crypto stance, signaling banks can serve crypto clients as SAB 121 was repealed.
• Jupiter acquired Moonshot, a meme coin launchpad, while Abstract, a consumer-focused Ethereum Layer-2 launched.
• Tesla revalued its Bitcoin holdings, reporting a Q4 gain after adopting FASB crypto accounting standards.
• The Czech central bank is considering allocating 5% of its reserves to Bitcoin, potentially making it the first Western central bank to do so.

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