Weekly Digest: April 2025 | Week 2

Highlights

• Bitcoin dropped 5% to $78,000, mirroring global market turmoil as Trump’s tariffs spark trade tensions and liquidations.

• Institutions added over 30,000 BTC, led by Strategy and Tether, while retail wallets saw broad distribution.

• Grayscale filed for an AVAX spot ETF, fueling interest as Avalanche’s gaming-focused infrastructure sees explosive growth.

Market Update

Crypto markets tracked global macro turbulence last week, as Bitcoin fell 5% to $78,000 following President Trump’s sweeping 10% import tariff announcement and reciprocal moves from key trade partners.

Trade retaliation escalated quickly:

• China imposed a combined 54% tariff on U.S. imports and banned exports of seven rare earth minerals.

• Vietnam, EU, and Taiwan were also hit with U.S. tariffs, triggering volatility across equities and crypto alike.

Traditional markets saw their worst drop since March 2020, with the S&P 500 and Nasdaq losing 10% each. Crypto was not spared:

• BTC: -5%

• ETH: -13%

• GMCI30: -11%, GMCIMID: -15%

The Circle IPO was postponed, and mining stocks fell sharply, as U.S. miners brace for higher ASIC import costs amid supply chain disruptions.

Fed Chair Powell warned of inflationary pressures but struck a cautious tone, opting to observe impacts before altering monetary policy.

Our take: Persistent trade friction and inflation risks are amplifying volatility, weakening risk appetite across sectors. Crypto is entering a phase where macro conditions matter more than ever for price discovery.

Bitcoin Accumulation Dynamics

Even as retail investors de-risk, institutions continue to accumulate Bitcoin aggressively:

• Strategy bought 22,048 BTC for $1.9B, lifting its holdings to 528,185 BTC (2.5% of supply) at an average price of $67,458.

• Tether added 8,888 BTC for $735M in Q1 2025, now holding 92,646 BTC.

• GameStop upsized its convertible note raise to $1.5B to fund its BTC treasury strategy.

• MARA Holdings plans to raise $2B to expand beyond its current 46,374 BTC stash.

Glassnode's Accumulation Trend Score reflects this shift:

• Institutions (10k+ BTC): ATS = 0.6 → Strong accumulation.

• Retail (<1 BTC): ATS < 0.2 → Net distribution.

Additionally:

• Long-term holders (180+ days) dropped from 60% of supply (Oct 2024) to 39.5% now.

• 90–180 day holders surged to 32.5%, up from 7.5% in December — likely representing pro-crypto institutions accumulating post-election.

Our take: Bitcoin is undergoing a structural transition in ownership. Spot ETFs and U.S. regulatory clarity helped onboard institutions—now we’re witnessing their first test of conviction amid market stress.

Avalanche Update

Institutional interest in Avalanche (AVAX) is rising fast:

• Grayscale filed for an AVAX spot ETF, following VanEck’s move earlier this month.

• These moves follow major protocol updates:

  • Avalanche9000 introduced permissionless validation.

  • Etna Upgrade added sovereign validator sets, custom gas tokens, and elastic validator capacity.

  • Retro9000 is offering $40M in grants for custom L1s.

Avalanche has seen massive network growth:

• Daily transactions rose from 1M (Sept) to 4M (April).

• Active addresses grew from 60K to 222K, spiking to 372K last week.

The surge is largely thanks to Gunzilla’s GUNZ Chain, a gaming-focused L1:

• Testnet results: 14M wallets, 1M DAUs, 500M transactions.

Powered by Avalanche’s HyperSDK, developers can launch custom L1s tailored for gaming — bringing real-time, asset-centric gaming closer to mainstream Web3.

However, validator numbers declined:

• L1 validators outside Primary Network dropped 72%, likely due to:

  • Retro9000 snapshot event (project sunsetting)

  • Upcoming Fortuna upgrade, requiring tighter node standards

Our take: Like Solana with memecoins, Avalanche’s future may hinge on Web3 gaming. If performance holds, AVAX could capture significant mindshare — especially as ETF filings bring added institutional exposure.

Closing Thoughts

The crypto market is at a geopolitical and structural crossroads:

• Bitcoin’s price correction is tied directly to macro volatility, but accumulation trends show growing institutional faith.

• Ethereum’s silence this week highlights a widening gap as other ecosystems (like Avalanche) seize attention.

• Avalanche’s playbook — modular infra + gaming focus + ETF momentum — makes it a rising L1 to watch.

FinchTrade remains at the forefront, delivering tailored liquidity, execution, and market insights to help our partners thrive in dynamic conditions.