Crypto Weekly Market Wrap 3rd March 2025: Regulatory Shifts, Market Trends, and Trump’s Crypto Agenda

Over the past week, the crypto market has witnessed major price swings that have emerged from several significant developments. Notable events include Trump’s crypto strategic reserve, the SEC’s dismissing several lawsuits, and the upcoming first-ever crypto summit in the White House.

In addition, crypto prices have recovered from the recent slump, which saw Bitcoin drop to the $83k region while major altcoins recorded significant declines. Here is a detailed look at the crypto weekly market wrap on 3rd March 2025. 

Trump Establishes U.S. Crypto Strategic Reserve

On Sunday, President Donald Trump announced the formation of the National Crypto Strategic Reserve. The reserve will be comprised of Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL) and Cardano (ADA). Trump described the initiative as an effort to assert American dominance in terms of digital assets.

Trump stated on Truth Social that this reserve would help the crypto industry after regulatory crackdowns. This was followed by a statement in which he pointed at XRP, SOL, and ADA as some of the assets that would be involved and later, he also identified BTC and ETH as instrumental in the initiative. He reassured an intention to make the United States the central hub for digital assets.

This led to market volatility in the selected cryptocurrencies, as demonstrated by the significant price increase. Some market analysts opined that the decision may drive institutional adoption and regulatory certainty. This followed Trump’s agenda of incorporating virtual currencies into the country’s financial system.

SEC Abandons Multiple Crypto Lawsuits

The SEC has dismissed multiple cases and probes against prominent crypto companies. This has been a significant change in policy stand as there has been precedence of increased enforcement actions in the past years.

This week, the SEC ended investigations into the following crypto companies

Monday: Robinhood
Tuesday: Uniswap
Wednesday: Gemini
Thursday: Consensys
Friday: ??? pic.twitter.com/0QI5gGi5dk

— Watcher.Guru (@WatcherGuru) February 27, 2025

Recently, the regulatory agency concluded an investigation into Uniswap Labs, which was previously accused of running an unlicensed exchange. The probe ended with no enforcement actions, which was a positive outcome for the DeFi market. Uniswap Labs also declared its focus on the pursuit of transparency and compliance.

Further, the SEC decided to dismiss its case against Consensys, the developer of MetaMask. The case was related to whether MetaMask provided services subject to securities laws. Ethereum co-founder Joseph Lubin welcomed the move, stating that the decision enables Consensys to concentrate fully on development.

Legal experts consider these rollbacks to be some type of shift in regulatory policies. Others anticipate more SEC actions to complement Trump’s quest to make America more friendly toward adopting cryptocurrencies. The dismissals have had a positive effect on DeFi and blockchain firms that operate under ambiguous legal status.

SEC Declares Memecoins Are Not Securities

A statement released by the SEC clarified that most memecoins could not be categorized as securities under federal laws. This has brought a legal framework that was long awaited, especially for meme token creators.

The agency’s Division of Corporation Finance elaborated that meme coins had no actual use case, and the central motivation stands in the market demand. To disregard such tokens, the SEC linked them to the collectibles, which posed them minimally different to investment contracts as dictated by the Howey Test.

The statement went further a step to explain that federal securities laws do not cover meme coin holders. While this reduces some compliance issues, it also brings out the problem of investing in worthless assets. The change eliminates uncertainty about regulatory risks relating to meme coin projects but also serves as a reminder that investors need to be careful.

Trump to Host First White House Crypto Summit

President of the United States, Donald Trump has scheduled the White House Crypto Summit for March 7th. The event will include major stakeholders in the industry, legislators, and representatives of the President’s Working Group on Digital Assets.

The summit will be headed over by David Sacks, with Bo Hines responsible for managing the event. The talks will cover regulatory measures, stablecoins policies, and the idea of a national digital asset reserve. The summit complements Trump’s executive order aimed at enhancing the US presence in digital financial technology.

Experts in the industry have expressed the belief that the event will determine future policy directions. It manifests the administration’s desire to set proper regulatory frameworks for crypto and promote innovation.

South Korea Imposes Trading Restrictions on Upbit

South Korean authorities halted the operations of Upbit by suspending new users’ transactions for three months. Regulators cited non-compliance with industry standards and guidelines, particularly on AML and KYC policies.

The Financial Intelligence Unit (FIU) claimed that Upbit conducted business with unregulated virtual asset firms. Therefore, the new users cannot withdraw or deposit their cryptocurrencies to or from external wallets, while the old clients can trade freely.

The suspension will take place from March 7, 2025, to June 6, 2025. Moreover, Upbit is subject to penalties and compliance checks. The move aims to strengthen measures for regulating crypto exchanges and ensuring they align with the set laws in South Korea.

Ethereum Foundation Appoints Aya Miyaguchi as President

The Ethereum Foundation recently reorganized its executive team, with Aya Miyaguchi receiving the designation of president of the organization. Miyaguchi was formerly the executive director of the organization.

Her new position concerns the development of institutional partnerships and strengthening Ethereum’s vision for the future. The transition, which was signaled about a year ago, is part of the process to fortify Ethereum as a key player in the blockchain sector.

The community has had a rather diverse response to Miyaguchi’s appointment. While some support her experience in leadership, others are concerned with changes in the structures of governance. The Ethereum Foundation believes that restructuring would help improve the organization’s effectiveness and expand its reach.

BitMEX Exchange Seeks Buyer Amid Legal Challenges

A popular crypto exchange, BitMEX, is now up for acquisition due to some legal issues. Broadhaven Capital Partners, an investment bank, was contracted to oversee the firm’s sales process. This comes after a Federal judge slapped BitMEX with a $100 million fine resulting from failing to adhere to the Bank Secrecy Act, which requires financial firms to report suspicious activities.

Established in 2014 by Arthur Hayes, BitMEX became more well-known for its innovation of perpetual futures in the cryptocurrency industry. However, the exchange faced a scandal in 2020 due to alleged negligence in complying with anti-money laundering measures, which resulted in its founders’ pleas and resignation.

Grayscale Seeks Approval for Polkadot ETF

Grayscale Investments filed with the SEC to offer its Grayscale Polkadot Trust (DOT) on the Nasdaq exchange. The application triggers a 45-day response time from the regulator, depending on whether the regulator approves the application or not. This move follows similar requests from Grayscale for an XRP ETF and a Cardano ETF. 

These filings reflect a more crypto-friendly sentiment that the SEC seems to have transitioned to after the change in the administration of the United States. The Polkadot filing comes after Grayscale’s filings to convert its XRP Trust into an ETF and list a spot Cardano ETF.

MetaMask to Integrate Bitcoin and Solana Ecosystems

MetaMask is improving its functionality by adding Bitcoin and Solana support to its wallet. From May, users will be able to engage in dApps on Solana and perform operations with tokens based on Solana. Additionally, Bitcoin support will be available by July or September, allowing users to store and manage BTC directly within the wallet. This expansion follows the growing demand for meme coins and Ordinals collectibles on Bitcoin and Solana.

Furthermore, MetaMask is working on a multichain API to simplify multi-blockchain interactions. This will let users concurrently access networks like Ethereum, Solana, and Bitcoin. MetaMask aims to improve the Web3 experience by enabling seamless dApp access and eliminating the need for separate wallets or wrapped tokens.

Crypto Market Overview

Bitcoin (BTC)

The leading asset, Bitcoin, has been in a period of extreme volatility, with the price dropping below key support levels. The digital assets investment products continued their outflows marking the largest weekly outflows at $2.9 billion. Being the third week of outflows, it brought the total to $3.8 billion. Bitcoin saw $2.59 billion outflows last week, with minor inflows into short Bitcoin totaling $2.3 million. 

📊👀 CoinShares report on financial flows in crypto for the last week:
– Last week, the outflow of investment products into digital assets amounted to ~$2.9 billion;
– #BTC has an outflow of $2.59 billion;
– #ETH has an outflow of $300 million. pic.twitter.com/eVxOK83LEZ

— Moon Whales (@Moon_Whales_) March 3, 2025

After losing the consolidation level around the $95k region, BTC formed a steady downtrend, sending the price below the $80k level. Despite hitting its lowest point since November, BTC recovered as the price settled around $85k. However, following the addition of Bitcoin to the US Crypto Strategic Reserve list, the price spiked again, surging above the $90k mark.

Currently, BTC is facing a rejection at the $95k mark, with its price trading at $93,295 and a gain of 9% in the past 24 hours. The bullish momentum has reduced the weekly and monthly declines to 2% and 8%, respectively. Looking at the daily technical indicators, BTC is trading above the immediate support at the $91K region as the bulls take the lead. BTC is trading alongside the Bollinger Band’s middle band at 93,368 after the recent bullish recovery. 

BTC has formed new support at the $83,620 mark, with the resistance highlighted at the $103,060 mark. Should the current trend hold, BTC could be on the verge of breaking the $100k mark. In addition, the RSI is currently hovering in the neutral region indicating a further room for growth. 

Ethereum (ETH)

The largest altcoin, Ethereum, displayed a bearish outlook after losing the $2,600 support level. The downtrend prolonged dropping ETH to the $2,100 level where it retraced back. The bearish sentiment was also attributed to the outflows which saw a record weekly outflow of $300 million for Ethereum. 

Ethereum traded around the $2,700 and $2,100 region over the past week with minor signs of bullish reversal. At press time, ETH is trading at $2,377 up by 7.84% in the past 24 hours. Its market cap and trading volume are at $286 billion and $40 billion. Technical indicators on the daily chart suggest a minor bullish reversal as the bulls lose momentum. ETH has failed to retrace above the 20-day Exponential Moving Average (EMA) at $2,549 and formed a trend reversal with a red candlestick formation. 

Furthermore, the Moving Average Convergence Divergence (MACD) indicator has lost its positive momentum as the MACD line starts to trend downwards below the signal line. With the histogram on the negative territory, the current trend suggests that we are still bearish.