TL;DR

• BTC is up & ETH is up

• BTC under-performed ETH this week 

• Bitcoin dominance is down

• The hot coin we look at this week is $ONDO

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BTC & ETH Market Update 📈

Crypto is up this week, with BTC up by 0.9 % and ETH up by 3.5%:

Bitcoin dominance has decreased over the week, starting from 58.9% to a low of 57.3% and ending at 57.5%. Investor sentiment, regulatory changes, technological advancements, and the overall growth of the cryptocurrency sector shape Bitcoin's market dominance. Its reputation as "digital gold" also enhances its position, making it a key player in the market.

It’s going to be interesting to see whether this trend will continue in the short term, as capital in crypto tends to flow initially to BTC and then further out on the risk-curve, starting with altcoins like ETH and then into mid- or low-cap coins.

Bitcoin exhibited resilience despite market pressures, trading within the $95,000 to $98,000 range over the past week. The price briefly tested $98,000 before retracing, highlighting strong resistance at this level. A sustained move above $98,000 could open the door for a push toward $105,000, while a breakdown below $95,000 may trigger further downside.

Bitcoin spot ETFs saw net outflows of $651 million since February 10, raising concerns about continued institutional demand. If this trend persists, ETFs could shrink by $1.65 billion in the coming week. Despite these withdrawals, Bitcoin has held firm, suggesting that some investors may be shifting to direct holdings or hedging positions via futures.

Retail investors have been selectively accumulating, with wallets holding between 0.1 and 1 BTC adding $80 million worth of Bitcoin over ten days. However, smaller addresses (<0.1 BTC) have been net sellers since January 31, and Google search interest in Bitcoin remains muted.

The release of U.S. inflation data showed a 3% year-over-year increase in the Consumer Price Index (CPI), leading to a 1.8% drop in Bitcoin's price as investors recalibrated interest rate expectations. Risk-off sentiment extended to equities, with the S&P 500 erasing gains from the prior eight sessions.

The U.S. dollar index (DXY) climbed to 108.40, and the 10-year Treasury yield increased to 4.65%, reflecting a flight to safety. Meanwhile, weak U.S. retail sales (-0.9% in January) signal potential economic deceleration, which could fuel renewed Bitcoin interest as a hedge against macroeconomic instability.

Despite ETF outflows, corporate accumulation continued. MicroStrategy, Metaplanet, and KULR Technology added to their Bitcoin reserves, while Italy’s Intesa Sanpaolo became the latest traditional financial institution to allocate to Bitcoin. This suggests that long-term institutional conviction remains intact, even as some short-term profit-taking occurs.

Bitcoin’s mining sector faced pressure, with the Bitcoin Hashrate Index declining amid falling transaction fees and rising energy costs. With the upcoming halving reducing block rewards, the network's reliance on transaction fees will increase.

While some miners may capitulate due to profitability concerns, historical data suggests Bitcoin’s hashrate adjusts over time, maintaining long-term network security.

Bitcoin’s resilience amid ETF outflows and inflation-driven market turbulence highlights its evolving role as both a risk asset and a macroeconomic hedge. While short-term price action remains volatile, strong corporate and institutional accumulation, coupled with potential economic slowdowns, could support Bitcoin’s long-term bullish trajectory.

Ethereum’s Total Value Locked (TVL) has surged to a three-year high, signaling renewed investor confidence in the network.

Over the past week, Ethereum’s TVL climbed to $58 billion, its highest level since early 2022, driven by increased activity in liquid staking protocols and DeFi applications. This rise reflects a growing appetite for yield opportunities within the ecosystem.

Lower network fees have further contributed to Ethereum’s attractiveness. Gas fees have dropped significantly, making transactions more affordable for users and fueling higher on-chain activity. The reduced costs have also supported DeFi engagement, as traders and liquidity providers benefit from improved capital efficiency.

On the price front, Ethereum saw heightened volatility following the 21Shares Ethereum ETF staking proposal. The possibility of ETH staking within an ETF structure has sparked optimism, as it could drive institutional demand and lock up more ETH, reducing circulating supply. This development, alongside growing market confidence, has kept ETH’s price resilient despite broader market fluctuations.

Overall, Ethereum’s strengthening fundamentals—reflected in rising TVL, declining fees, and ETF-related momentum—suggest a positive outlook. If these trends persist, ETH could see further upside in both network adoption and market valuation.

Ethereum (ETHUSD) Analysis:

As of February 14, 2025, Ethereum is trading at $2,699.79, down 0.63% for the day. The price remains within a horizontal trend channel, indicating continued consolidation. Immediate support is at $2,607, with a breakdown potentially exposing $2,240. Resistance is seen at $2,900. Negative volume balance suggests increased downside risk, with recent volatility at 2.50% daily and 24.37% over 22 days.

Bitcoin (BTCUSD) Analysis:

As of February 14, 2025, Bitcoin (BTC) is trading at $96,827. In the short term, BTC is in a horizontal trend, with support at $94,000 and resistance at $101,800, signaling investor uncertainty. A breakout in either direction could determine the next move. The medium-term trend remains positive, with BTC holding support at $92,000 and resistance at $105,000. The long-term outlook is strongly bullish, with no clear resistance ahead and key support at $72,000, suggesting further upside potential.

Expected Trading Ranges:

• Ethereum (ETH): Support at $2,607; Resistance at $2,900.

• Bitcoin (BTC): Support at $94,000; Resistance at $101,800.

Market Outlook:

Bitcoin faces near-term pressure after $651M in ETF outflows and a CPI-driven sell-off, testing key $95,000 support. Weak macroeconomic data and miner profitability concerns add downside risks, but institutional interest and retail accumulation provide a counterbalance. A breakout above $105,000 remains possible if capital shifts from equities, though short-term volatility is expected.

Ethereum’s outlook remains bullish as TVL climbs to a three-year high, signaling strong network demand. Declining fees improve usability, while anticipation around the 21Shares Ethereum ETF staking proposal fuels market optimism. Price action may remain volatile, but sustained growth in DeFi and staking participation supports long-term strength.

BTC/ETH ratio has seen a decrease:

Over the last six days, the BTC to ETH exchange rate has shown a net decrease, dropping from 36.77 ETH on Feb 11 to 35.89 ETH on Feb 15. Despite daily fluctuations, including a 0.86% increase on Feb 13 and a 0.36% rise on Feb 15, the overall trend has been downward, with the most significant drop of -2.66% on Feb 12. This suggests that Ethereum has outperformed Bitcoin over the past week, leading to a lower BTC/ETH ratio.

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Hot Coin: $ONDO🔥

In this week’s newsletter, we dive into Ondo Finance’s token with the ticker: $ONDO.

The price action and volume have been growing consistently and don’t seem to stop any time soon:

What is the project about?

Ondo Finance is a decentralized finance (DeFi) platform focused on bridging traditional financial assets with blockchain technology. It facilitates the tokenization of real-world assets (RWAs), enabling greater accessibility to institutional-grade financial products.

Through its ecosystem, Ondo Finance offers innovative solutions such as Flux Finance, a lending protocol governed by the Ondo DAO, allowing users to engage with tokenized assets securely and transparently.

By leveraging blockchain’s efficiency and decentralization, Ondo Finance aims to democratize finance, ensuring that high-quality investment opportunities are available to a global audience. The platform’s partnerships with industry leaders like BlackRock, Morgan Stanley, and Coinbase further enhance its credibility and reach.

Why is the project exciting now?

There are four main reasons why we feature this project in this week’s newsletter:

• Institutional Adoption of Tokenized Assets

• Trump-Backed WLFI Collaboration

• Expanding DeFi Yield Opportunities

• Strategic Industry Partnerships

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