BTC is now in a complex interaction of a series of opposing forces. Technically, the daily reversal indicator reached oversold levels last week, suggesting potential support, while the weekly indicator still shows that BTC is still overbought. On the macroeconomic side, unfavorable factors such as tightening liquidity and the hawkish stance of the Federal Reserve have brought negative impacts. At the same time, bullish drivers such as expectations of the United States to build up Bitcoin reserves and the advent of the pro-cryptocurrency Trump administration provide support.
In the past week, after Trump took office, his BTC strategic reserve plan may provide support for market confidence, but the source of funds is still the main obstacle. At the same time, the market acceptance of crypto assets has increased significantly, the TVL of the RWA protocol has exceeded US$7.3 billion, the proportion of government securities has increased significantly, and the markets preference for low-risk digital assets has continued to increase.
Trump takes office, his strategic reserve plan may provide confidence support for BTC
Trump took office on January 20, and the BTC strategic reserve plan that his government may promote has become the focus of heated discussion in the market. The market generally believes that if the United States includes BTC in the national reserve and promises to hold it for a long time, it will further attract institutional investors to participate. However, the actual effect of this confidence boost may be limited.
The core obstacle of the strategic reserve plan lies in the source of funds. The current fiscal situation in the United States is extremely tight, and the annual debt interest payment has become a heavy burden. In the next decade, the fiscal space of the United States is expected to continue to narrow, which makes the possibility of purchasing BTC by issuing additional debt almost zero.
In the case that traditional fiscal means cannot be used to advance, the market-based model may become a solution. Although the token fundraising model that Trump has tried before is controversial, it provides a reference for the sandbox test of similar reserve plans. These paths may provide a more realistic solution for the BTC reserve plan.
$TRUMP Pushes Solana DEX Volume to All-Time High
The market enthusiasm caused by OFFICIAL TRUMP ($TRUMP) has driven a surge in the use of Solana DEX. In January 2025, Solana DEXs trading volume reached an unprecedented 268% compared to ETH DEX, compared to only 53% in the same period last year.
As the Solana DEX ecosystem expands, ETHs market share faces greater pressure. Solana has become an important competitor in the decentralized exchange market with its low transaction costs and increasing network stability.
RWA agreement TVL exceeds $7.3 billion, with government securities accounting for a large increase
According to data from The Block, the TVL of the RWA protocol reached $7.3 billion on January 22, a year-on-year increase of more than 200%. Among them, Usual Protocol and Hashnote USYC ranked first in the industry with a TVL of approximately $1.48 billion respectively.
Government securities now account for about two-thirds of the total RWA TVL, up from 36% a year ago. This shift reflects investors’ growing confidence in compliant, government-backed digital assets, and reflects the market’s preference for low-risk traditional financial instruments, marking the gradual maturity of the sector.
As the RWA Protocol focuses on government-backed asset classes, its growth trajectory shows that blockchain financial instruments are gaining institutional recognition and showing strong demand for lower-risk assets in the current market environment.
Some of the above views come from Matrix on Target. Contact us to obtain the full report of Matrix on Target.
Disclaimer: The above content does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy to residents of the Hong Kong Special Administrative Region, the United States, Singapore, and other countries or regions where such offers or solicitations may be prohibited by law. Digital asset trading may be extremely risky and volatile. Investment decisions should be made after careful consideration of personal circumstances and consultation with financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.
