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Q1 2025 Crypto Update

What happened in crypto and blockchain? Let’s take a look.

The first quarter of 2025 has been a pivotal period for the cryptocurrency industry, marked by significant developments that have reshaped the landscape. From groundbreaking regulatory initiatives to major corporate ventures, the crypto ecosystem has experienced a dynamic and transformative start to the year.

1. Establishment of the U.S. Strategic Bitcoin Reserve

In a landmark move, President Donald Trump signed an executive order on March 6, 2025, officially establishing a U.S. Strategic Bitcoin Reserve. This initiative aims to diversify the nation’s financial assets and position the United States as a leader in the digital currency space. The reserve will be primarily funded by Bitcoin assets already seized and held by the federal government, estimated to be around 200,000 BTC. This move underscores the administration’s commitment to integrating cryptocurrencies into the national financial framework.

2. Formation of the SEC Crypto Task Force

On March 21, 2025, the U.S. Securities and Exchange Commission (SEC) convened the inaugural meeting of its Crypto Task Force. Led by Republican SEC Commissioner Hester Peirce, the task force aims to explore the applicability of existing securities laws to digital assets and consider the need for new regulatory frameworks tailored to cryptocurrencies. This initiative reflects a shift towards a more accommodating regulatory environment under the current administration, aligning with President Trump’s pro-crypto stance.

3. Launch of Major Stablecoins by Prominent Financial Institutions

The stablecoin market witnessed notable expansions with significant players entering the arena:

  • World Liberty Financial’s USD1: Backed by Donald Trump and his sons, World Liberty Financial announced plans to introduce USD1, a stablecoin fully backed by U.S. treasuries, dollars, and cash equivalents. Aimed at facilitating secure cross-border transactions for institutional investors, USD1 is set to be issued on both the Ethereum network and Binance’s blockchain.
  • Fidelity Investments’ Stablecoin Initiative: Reflecting the growing mainstream interest in digital assets, Fidelity Investments disclosed that its digital asset division is testing a dollar-pegged stablecoin. While specific details and a launch timeline remain undisclosed, this move signifies Fidelity’s commitment to integrating cryptocurrency solutions into its financial services.

4. BlackRock’s Introduction of a Bitcoin ETP in Europe

BlackRock, the world’s largest asset manager, expanded its cryptocurrency offerings by launching its first Bitcoin exchange-traded product (ETP) in Europe. Domiciled in Switzerland and listed across major European exchanges, the ‘iShares Bitcoin ETP’ provides institutional and retail investors with regulated exposure to Bitcoin, marking a significant milestone in the mainstream adoption of digital assets.

5. Market Volatility and Investor Sentiment

The cryptocurrency market experienced considerable volatility during this quarter:

  • Market Downturn: The market faced one of its most challenging quarters, with Bitcoin’s price declining from $65,000 on January 1 to $42,000 by March 31, marking a 35.38% decrease. This downturn has been attributed to various factors, including profit-taking, regulatory uncertainties, and macroeconomic conditions.
  • Proliferation of Crypto Tokens: As of March 2025, the number of crypto tokens surpassed 37 million, with projections suggesting this figure could reach 100 million by year’s end. This exponential growth underscores both the innovation within the space and the challenges investors face in navigating an increasingly crowded market.

6. Argentina’s $LIBRA Cryptocurrency Scandal

In February 2025, Argentina faced a significant cryptocurrency scandal involving President Javier Milei’s promotion of a meme coin named $LIBRA. The coin’s value surged following Milei’s endorsement but subsequently plummeted, leading to allegations of a “rug pull” scam and substantial losses for investors. This incident has sparked political turmoil and raised concerns about the need for greater oversight in cryptocurrency promotions by public figures.

7. Legislative Developments and Industry Advocacy

The crypto industry has been proactive in shaping its regulatory future:

  • Congressional Engagement: A new congressional working group on cryptocurrency regulation has been established, reflecting the industry’s growing political influence and the government’s commitment to fostering a balanced regulatory environment.
  • State-Level Initiatives: Texas is considering legislation to incorporate Bitcoin into its state reserves, building on its leadership in Bitcoin mining and signaling a broader acceptance of cryptocurrencies at the state level.

8. Technological Innovations and Research

Advancements in technology continue to drive the crypto industry’s evolution:

  • AI Integration in Crypto Portfolio Management: Research has been conducted on leveraging large language models (LLMs) for automated cryptocurrency portfolio management. This approach aims to enhance investment strategies by utilizing AI to analyze multi-modal data and make informed decisions, reflecting the convergence of artificial intelligence and blockchain technology.

Conclusion

The first quarter of 2025 has been transformative for the cryptocurrency industry, characterized by significant regulatory advancements, institutional adoption, market fluctuations, and technological innovations. As governments and financial institutions continue to engage with digital assets, the crypto ecosystem is poised for further integration into the global financial system. However, incidents like Argentina’s $LIBRA scandal highlight the ongoing need for robust regulatory frameworks to protect investors and ensure the sustainable growth of the industry.

The Ten Best Crypto Investments for 2025

The cryptocurrency landscape is evolving at breakneck speed, making 2025 an exciting yet challenging year for investors. With blockchain technology continuing to expand its reach into financial services, gaming, supply chain management, and even artificial intelligence, the opportunities are vast. Whether you’re a seasoned crypto investor or just entering the space, understanding where to put your money can make all the difference. Here’s a detailed look at the 10 best crypto investments for 2025.

top ten crypto investments

1. Bitcoin (BTC)

Market Outlook: Despite the emergence of thousands of altcoins, Bitcoin remains the king of cryptocurrencies. As the most widely adopted and secure digital currency, it continues to be a safe haven for both institutional and retail investors.

Why Invest:

  • Deflationary asset with a capped supply of 21 million BTC.
  • Increasing adoption as “digital gold.”
  • Hedge against inflation.

Risks:

  • Regulatory scrutiny.
  • Energy concerns related to mining.

Verdict: Bitcoin remains a cornerstone of any balanced crypto portfolio.

2. Ethereum (ETH)

Market Outlook: Ethereum is the leading smart contract platform and the backbone of decentralized finance — known widely as “DeFi” — and NFTs.

Why Invest:

  • Successful transition to proof-of-stake (PoS) in 2022 with Ethereum 2.0.
  • Expanding Layer 2 ecosystem (e.g., Arbitrum, Optimism).
  • Massive developer community and continuous innovation.

Risks:

  • Competition from other smart contract platforms.
  • Scalability concerns.

Verdict: Ethereum’s dominance in DeFi and smart contracts makes it a solid long-term investment.

3. Solana (SOL)

Market Outlook: Known for its high throughput and low transaction fees, Solana has quickly risen to prominence as a top competitor to Ethereum.

Why Invest:

  • Lightning-fast transactions (65,000 TPS).
  • Strong ecosystem for DeFi and NFTs.
  • Backing from major investors and partnerships.

Risks:

  • Outages and technical vulnerabilities.
  • Centralization concerns.

Verdict: Solana’s performance improvements and growing ecosystem make it a compelling choice for 2025.

4. Polkadot (DOT)

Market Outlook: Polkadot aims to create an interconnected blockchain ecosystem where different chains can securely communicate with each other.

Why Invest:

  • Pioneering interoperability between blockchains.
  • Parachain auctions drive demand for DOT.
  • Strong backing from a passionate developer community.

Risks:

  • Complex technical design.
  • Intense competition in the interoperability space.

Verdict: If interoperability takes center stage in the crypto world, Polkadot is poised to thrive.

5. Cardano (ADA)

Market Outlook: Cardano is a peer-reviewed blockchain platform with a focus on sustainability, scalability, and security.

Why Invest:

  • Focus on academic research and rigorous testing.
  • Continuous upgrades (e.g., Hydra scaling solution).
  • Commitment to decentralization.

Risks:

  • Slower development pace compared to competitors.
  • Questions around adoption and ecosystem growth.

Verdict: Cardano is an appealing investment for those who prioritize research-backed innovation.

6. Chainlink (LINK)

Market Outlook: Chainlink is the leading decentralized oracle network, enabling smart contracts to interact with real-world data.

Why Invest:

  • Essential for DeFi, NFTs, and other blockchain applications.
  • Partnerships with industry leaders across finance and tech.
  • Expansion into staking and hybrid smart contracts.

Risks:

  • Dependence on broader blockchain adoption.
  • Increased competition in the oracle space.

Verdict: As a critical infrastructure piece, Chainlink’s role in the blockchain economy makes it indispensable.

7. Avalanche (AVAX)

Market Outlook: Avalanche has positioned itself as a fast, scalable smart contract platform with a strong emphasis on interoperability.

Why Invest:

  • High-speed transactions and low fees.
  • Subnet architecture allows for customizable blockchains.
  • Robust ecosystem growth in 2024.

Risks:

  • Competing with other Layer 1 solutions.
  • Potential regulatory challenges.

Verdict: Avalanche’s innovative approach to scalability positions it as a major contender in 2025.

8. Cosmos (ATOM)

Market Outlook: Cosmos is often referred to as the “Internet of Blockchains,” aiming to create an interconnected blockchain network.

Why Invest:

  • Unique focus on interoperability and cross-chain communication.
  • Strong developer ecosystem.
  • Introduction of liquid staking and new governance features.

Risks:

  • Competing with Polkadot for interoperability dominance.
  • Slower ecosystem growth compared to Ethereum and Solana.

Verdict: Cosmos remains a top choice for investors betting on a multi-chain future.

9. Arbitrum (ARB)

Market Outlook: As a leading Layer 2 solution for Ethereum, Arbitrum aims to improve scalability and reduce fees while maintaining Ethereum’s security.

Why Invest:

  • Rapid adoption by DeFi protocols and dApps.
  • Strong transaction volume and user growth.
  • Clear roadmap for further decentralization.

Risks:

  • Dependency on Ethereum’s performance.
  • Competition from other Layer 2 solutions.

Verdict: With its proven scalability improvements, Arbitrum is a solid bet for Ethereum believers.

10. Polygon (MATIC)

Market Outlook: Polygon has transformed from a simple Layer 2 solution to a comprehensive ecosystem for building scalable dApps.

Why Invest:

  • Strong ecosystem partnerships (e.g., Disney, Reddit).
  • zkEVM rollout enhances security and scalability.
  • Proven track record in onboarding major Web3 projects.

Risks:

  • Competition from newer Layer 2 solutions.
  • High reliance on Ethereum.

Verdict: Polygon’s consistent growth and innovation make it a top-tier investment for those looking to bet on Ethereum’s scaling solutions.

Final Thoughts

The crypto market in 2025 will likely be shaped by both technological advancements and regulatory developments. Bitcoin and Ethereum remain foundational investments, while platforms like Solana, Avalanche, and Arbitrum present high-growth opportunities. Projects focusing on interoperability, such as Polkadot and Cosmos, cater to the growing demand for seamless blockchain communication.

Before making any investments, it’s crucial to conduct thorough research, stay updated with market trends, and assess your risk tolerance. Diversifying your crypto portfolio across different use cases—from DeFi to interoperability—can help mitigate risk and maximize potential returns. As always, only invest what you can afford to lose and consider consulting with a financial advisor.

Crypto: Down. Stocks: Down. Inflation: Up. So What Do You Buy?

Here’s yet another post with a couple blatant caveats: (1) THIS IS NOT INVESTMENT ADVICE and (2) NOBODY KNOWS WHAT’S GOING ON.

We’ve had a couple weeks here in CryptoLand. You name it, it’s down. Take our 2022 Growth Portfolio: a hypothetical $10,000 investment with $1,000 each in ten different crypto assets. Thank God it’s only hypothetical.

Screenshot from May 20, 5:30 a.m. CDT

It was a bloodbath. It still is kinda sorta a bloodbath, in that nobody knows if BTC saw the bottom, or if ETH’s move to Proof of Stake (known colloquially as “The Merge”) is going to be all that, or if stablecoins will stabilize.

And whether or not you’re better off throwing darts.

At Least the Stock Market Is Okay, Right?

Let’s answer the question in the meme with a screenshot.

Stock market, one-month performance.

The problem, though, is that to keep propping up the stock market, The Fed is going to need to thread the needle on interest rates. Too much of an increase and the stock market tanks. Too little of an increase and you can’t catch up with inflation.

So you’re painted into a corner because the stock market is so important to everyone’s 401(k) plan and the inflation rate — which is caused, DUH, by ALL THAT PANDEMIC MONEY PRINTING — is so important to everyone’s standard of living that it really REALLY stinks to be Jerome Powell right now.

Now, Let’s Talk Inflation. Cue Karen Carpenter…

“We’ve Only Just Begun…”

As David Stockman — President Reagan’s former Budget Director, native Midwesterner (shout-out to Michiana!), and future guest on my YouTube channel (call me!) — told us on Doug Casey’s Dispatch a couple weeks ago, we are collectively screwed. And it’s mostly thanks to central bankers.

That part about J-POW having a rough job is not an understatement; the corner we have been painted (printed) into is troublesome. Investors don’t know which assets to invest in, and the average Joe is more worried about real-life things like gas prices or the cost of food.

So…What DO You Buy?

We follow a few financial people on Twitter, on YouTube, and elsewhere. We’re nailing Jell-O to a tree here.

Here’s Joe from Heresy Financial, telling us (SPOILER ALERT) that Treasurys might be the way to go. Here’s another YouTuber — one we found from typing in “where to invest 2022” into the YouTube search bar, then going with the first one we found from the month of May — suggesting individual stocks. And here’s CNBC, taking a break from its “How This [NUMBER] Year-Old [JOB DESCRIPTION] Made [LARGE AMOUNT] By [ZAGGING WHEN EVERYONE ELSE ZIGGED AND/OR INHERITING MONEY]” template (shown here) to give us a whole host of ideas of where to invest in an inflationary environment.

Feel free to grab any of these ideas and batten down the hatches, right?

We’d refer you back (AGAIN) to our series called SHTF. Volume 1 is here and Volume 2 is here. But these are *mostly* crypto-related ideas (with a break for some precious metals and cash on hand). And that isn’t even guaranteed, if the last few weeks are any evidence.

TL;DR: See Elmo

Elmo Fire

Buckle Up. Good Luck.

When the Growth Portfolio Doesn’t Grow

We’re on a mission with the 2022 Growth Portfolio. We’re just not yet sure what that mission is.

When we jumped into the fray with our own mix of ten tokens to potentially invest in — and of course you should DO YOUR OWN RESEARCH — the thought was as follows: get a basket of tokens and ride out the 2022 market with it.

Up? Down? Sideways? Stalwarts like Bitcoin and Ethereum? Up-and-comers in Web3 like $ENS and $MAGIC? Yes.

So maybe the mission depends on the markets; a basket like this can help you ride the ups and downs.

And, So Far This Year, Lots of ‘Downs’

Meh Performance.

So we’re taking one on the chin so far.

That, my friends, is an understatement. Bitcoin’s doing fine when compared to the others — but still down nearly 20 percent — and Ethereum has been down and then a little back up but still down in 2022. To wit:

The roller coaster that goes down first

No time to do any touchdown dances or victory laps: this is not good performance. What gives?

We Don’t Know Why. Time to Catch the Falling Knife?

This is the question I get pretty often: have we hit bottom, or is it time to catch the falling knife? And, from the school of “IDK, DYOR,” I can posit a guess or two but invite you to study this on your own.

Guess One: Global Unease Equals Meh Performance

If I see one more post about “this is the time for Bitcoin” using the context of global geopolitical events as proof that this is the time for Bitcoin, I’ll scream.

However, you *could* guess that people in places like Canada who have had their bank accounts frozen might see a little truth to that. If you can’t even get money out of your bank then, well, this may be the time for Bitcoin.

(Also, if governments don’t understand how these things work, they may only choose to regulate them further. Will that push any and all coins into an oblivion? Will that lead to a black market for all things? Will that drive everything higher?)

Guess Two: Is There TOO Much Crypto Noise?

Is it possible that the ads from Larry David and Lebron James have rendered some of us inured to the noise around the subject? I mean, not the OGs like you and me, natch, but the rest of the world.

Nobody really knows what constitutes a good deal these days, so the newbies jumping in might not care if Bitcoin is $35K or $25K. And so on: for assets without earnings seasons and dividend payments, you’re flying blind.

Celebrating Our Only Good Pick So Far…

“Even a blind squirrel finds a nut every once in a while.”

We got lucky with $MAGIC. Somehow, at treasure.lol — that’s the web address! — they’re building a pretty cool…ah…uh…whatever they’re building. But trust us, it’s at the intersection of NFTs and gaming and crypto writ large, so we’re there for it.

We had mentioned it a couple times before on these pages, most recently in this post: How to Spend $1000. And we’ll ride this for as long as is feasible.

Today’s Takeaway…

We have mentioned this is not investment advice, right? And that you should do your own research?

Yes, that. Also you may or may not be better off being lucky than being good.

Rocks and Bored Apes; AlphaBettys and Prison Raccoons; and Our Own #Sketches2021

Welcome to the wonderful world of NFTs. The alternate title for this post is “NFTs are crazy, right?”

As we have discussions with people in and around the cryptocurrency universe, we feel we’re almost always needing to provide evidence of our own bona fides. Typical conversations:

“Oh, you got $4,000 from Uniswap? Well, have you ever made $150,000 off of airdrops?”

“I bought my first Bitcoin at $20!”

“Gee, you shouldn’t have sold your $ETH; I met Vitalik once and he’s the real deal.”

These discussions remind me of the typical indie-rock tropes, like “well, I saw Arcade Fire when I was a student at McGill,” or “I saw Fishbone at the Lost Horizon in Syracuse in 1991.” (The second one is true for me; for the record, though, none of the crypto ones are my own story.)

The subsets of crypto have developed their own parlance, and the early adopters are known by the lingua franca of “yield farming” and “LPs” (for DeFi) and, for today’s it girl, NFTs, things like “1:1” or the “Floor” or “Up Only.” (To say nothing of the overriding crypto lingo that is, simply, the word “Few.” As in: “Few understand.” As in: “check out this LP from the band Morphine, they’ll be bigger than Pearl Jam. Few.”)

Enter the Rocks and the Bored Apes.

Item: someone paid a lot of money for a picture of a rock. These rocks (all of which can be found here: Ether Rocks ) would be “selling like hotcakes” if there were tons of them but there are only…wait, you’re telling me there are 100 of these? Hold on one second, someone paid $2m for a JPG of a rock?

A couple things should be noted here: one is that this is a limited supply JPG — only 100 total here, which is REALLY limited — and it’s also what’s called a “1:1,” or “1 of 1.”

Other projects have decided to make their artwork limited but not limited to only one piece. Like this collection, from a startup called DADA, which has five or ten of each piece of artwork.

Well, it appears we missed the boat on the rocks. Maybe there’s another project we’re not too late on…ah, I see here there’s something called the Bored Ape Yacht Club and we might be able to get one of these beautiful Bored Apes?

Oh, you have to call Sotheby’s?

Good thing we got in on THIS one early…oh…wait…we missed it.

N.B. these are limited to 10,000 different 1:1s. So it’s possible a lot of people are sitting on a lot of money today; it’s also possible that you aren’t one of those people.

What to do, what to do…

Not Too Late For THESE NFTs, Are We?

Still time to jump into the pool with both feet. Right? Here we go…AlphaBettys!

One of these didn’t cost us too much — 0.19 ETH for this one, number 7888 in the collection — and there’s a chance that the market will heat up. Or maybe it won’t, and we’re holding onto an asset class that’s going to be like our POW Tokens. Time will tell.

Other projects we’ve dived in on include something called Space Shibes (DISCLOSURE: we were part of the early group of investors in this project) and Shael Onions and some sort of panda/raccoon prison/pool party mashup. (See below.)

If You Can’t Make Sense Of It All…

Neither can we. So we launched another project of our own.

The Official Logo

The first couple projects were lower-price experiments with NFTs. We began our journey with the Obvious Statement Collection. Next was the “One Hundred NFTs.” Both were more graphic design projects than art projects.

And the above projects are best described as NFT Avatars: if you get a Crypto Punk, your goal is to use that punk as your PFP (profile photo). (In case you’re wondering, we missed the boat on that one, too.)

Actual NFT artwork, like DADA or the work of someone like Meg Thorpe, is the same animal but a little (or a lot) different.

Our goal with our own project, “Sketches2021,” was to create one-of-a-kind pieces; modern, simple sketches with bright colors. We’d also make it a limited number (we settled on 256 thanks a little to a suggestion from our friend Von who calls himself “Lazy Crypto Guy” on Twitter) and we’d go for a floor of 1 ETH.

We’ve released the first 100 pieces and they’re all on OpenSea as we speak. The entire set is complete — we worked on them during Summer 2021 — and the rest will be launched in short order. Perhaps with a giveaway or two, stay tuned. (For now, we started with the first dozen on the web page here: Sketches2021 on Metacoin.

What’s The Point?

We’ve been asking that question about a lot of what’s in the crypto universe since it launched. Will Bitcoin really disintermediate the banks? Will Ethereum really have a layer that allows for transactions and tokens everywhere? Will these DeFi lending platforms do anything? Will these digital avatar JPEG thingies make me rich?

Time will tell, folks. Time will tell.