Feb 3, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — PCE Muted in January 2025

The Federal Reserve's key inflation measure remained subdued in December 2024, with real incomes softening, potentially paving the way for interest rate cuts this year. Meanwhile, the core personal consumption expenditures (PCE) price index increased by 0.2% from November 2024 and 2.8% year-over-year, while real disposable income saw minimal growth for a second consecutive month, leading to a drop in the savings rate to a two-year low of 3.8% that could put consumers at risk if incomes decline, according to LPL Financial's chief economist.

On a three-month annualized basis, the core PCE rose 2.2%, the slowest since July, alleviating some inflation concerns. Federal Reserve Chair Jerome Powell indicated that further rate cuts depend upon progress toward the 2% inflation target amid uncertainties surrounding president Trump's policies.

In related data, labor cost growth slowed and consumer spending rose by 0.4% in December 2024, driven by strong demand for durable goods. Fed officials remain cautious about rate adjustments, influenced by a resilient labor market and upcoming revisions to job growth data. Additionally, the economy's GDP grew by 2.3% in the fourth quarter, supported by a significant increase in personal spending.

Weekly Crypto Highlight — Crypto Forgets DeepSeek Crash

On Jan 27, 2025, Bitcoin prices dropped 6% as markets reacted to the launch of DeepSeek, a new open-source AI model from China, which investor Marc Andreessen describes as "AI's Sputnik moment." Developed for under $6 million using less advanced NVIDIA hardware, DeepSeek emerged as a competitor to U.S. firms like OpenAI, unsettling investors and leading to significant losses in tech stocks, including a nearly 17% drop for NVIDIA.

The cheaper, more efficient AI model also negatively impacted energy utility stocks that expected revenue from power-intensive U.S. models. Major cryptocurrencies, including Bitcoin and Ether, fell 6% and 7% respectively, reflecting a broader market sentiment, rather than a direct correlation to DeepSeek.

Despite the volatility, some analysts remain optimistic, noting Bitcoin's stabilization amid ongoing Nasdaq-100 declines. The open-source nature of DeepSeek may foster innovation in AI development, with industry figures suggesting it could enhance cheaper, faster AI systems.

However, privacy concerns surround DeepSeek, with regulatory scrutiny emerging in the U.S. and EU over its data policies. Critics warn it may serve as a Trojan horse for data collection, echoing past controversies with Chinese tech. 

Overall, while DeepSeek's immediate impact on crypto appears limited, its long-term effects on the AI landscape and market dynamics have yet to be fully realized.

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Weekly Institutional Insights: DeepSeek in the Past as Macro Seems to Favor Risk Assets

Tether is integrating its USDT stablecoin into the Bitcoin Lightning Network using the Taproot Assets protocol.

The S&P 500 rose 0.53% on Thursday and is up 3.2% for the month, driven by positive tech earnings despite ongoing market volatility. Gold prices surged to a record high on Thursday due to safe-haven demand amid U.S. tariff threats. Spot gold rose 1.4% to $2,796.15 per ounce, while U.S. gold futures increased by 2% to $2,824. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 1.01%, with Bitcoin and Ether rising by 0.65% and 3.31%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is AR, which surged nearly 20.9% following KYVE's archiving of 10TB of Web3 historical data on Arweave.

Arweave (AR), launched in June 2018, is a decentralized platform for permanent data storage. It uses its AR cryptocurrency to ensure data permanence, offers easy web access, and partners with the Internet Archive to secure data preservation. KYVE has 

 over 10TB of compressed, trustless data onto Arweave, including historical chain data from Ethereum, Osmosis, Celestia, and Archway, making Web3 history easily accessible.

Check Out the Latest Prices, Charts, and Data of 

 its USDT stablecoin into the Bitcoin Lightning Network using the Taproot Assets protocol. This partnership, announced at the Plan B conference, aims to expand Bitcoin's functionality and allow USDT payments on Lightning. Tether, with a market cap of $139.4 billion, processed $10 trillion in transactions in 2024 and operates across multiple blockchains. The integration is expected to benefit users in emerging markets and support future transactions between AI agents and autonomous vehicles.

Yesterday, the BTC Spot ETF saw a total flow of $266.6 million, all from non-GBTC sources.

D3 is developing a DomainFi network on the Doma Protocol and has raised $25M from top VCs. They are partnering with projects like Solana Foundation and Avalanche. To potentially qualify for an airdrop, you can buy a domain for $10/year. Payments can be made with Ethereum or the domain's respective chain. Participation carries some risk.

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Tether Brings USDT to Bitcoin Lightning Network

Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, as well as futures, options and perpetual contracts.

Markets faced a significant risk-off event early this week as DeepSeek's LLM announcement coincided with sharp declines in major indices and crypto markets. Despite the volatile sell-off in spot markets, open interest in perpetual swaps remained stable, with funding rates briefly turning negative before recovering. 

Options markets saw an increase in trading volume during the sell-off, although forward-looking volatility expectations declined. The period of positive funding rates for perpetuals ended due to bearish spot price action on Monday. In the options space, realized volatility fell below implied volatility, reflecting a small-scale repeat of the pre-inauguration term structure inversion. Notably, ETH options maintained a volatility premium over BTC options, while longer-dated volatility smiles exhibited a bullish skew toward out-of-the-money (OTM) calls.

Please check out the report’s highlights.

Options open interest data shows minimal change over the past week, except for the expiration and reopening of short-dated options. Despite the largest single-day trading volumes in call options this month — nearly $250M during the spot price sell-off — trade volume did not significantly impact volatility, which has declined for both realized and implied metrics. Positioning has split between short- and longer-tenor volatility smiles. Short-tenor options are exhibiting lower volatility and a neutral skew, while longer-dated volatility smiles are reflecting increased volatility expectations and a persistent bullish skew toward OTM calls, as has been the case since the election.

ETH options trading volume has surged over the past week, marking its strongest levels in a month. While late December 2024 and early January 2025 saw robust activity, recent data indicates a more active calls market, with open interest remaining heavily weighted toward calls. The early-week global market sell-off briefly shifted short-tenor ETH volatility smiles away from calls, reminiscent of the volatility term structure inversion seen before the inauguration. Despite ETH's spot recovery being weaker than BTC's, its options have maintained higher volatility levels.

Following last week's rally in spot price due to the launch of two presidential meme coins, Solana's price has retreated with the broader crypto market. However, positioning from the rally remains largely unchanged, with open interest in puts and calls remaining elevated and trading activity surpassing pre-rally levels. The stable levels of newly opened put options likely reflect protective buying intended to hedge profitable long positions in other instruments.

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Jan 29, 2025): Options Market Recovers From Monday’s Sell-Off

Phantom wallet has officially integrated Sui, making it the first Move-based blockchain and third Layer 1 supported on the platform. 

The S&P 500 fell 0.47% amid Fed rate pause and mixed tech earnings. Gold fell 0.4% as the dollar and Treasury yields rose after the Fed held rates steady, offering little clarity on future cuts. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 2.07%, with Bitcoin and Ether rising by 2.99% and 2.90%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is TAI, which surged nearly 38.6% following the unveiling of the Sona framework by TARS AI for cost-efficient AI computation.

TARS AI (TAI), launched in 2022, is a decentralized, multichain platform offering AI-powered tools to help web3 projects launch and manage tokens efficiently. Rebranded in 2023, it supports eight blockchains, including Ethereum and BNB Chain, with plans for expansion. TARS AI is set to 

 two custom frameworks in V1 of its AI Market, including Sona, a proprietary framework compatible with DeepSeek AI for efficient, low-cost computations. More details will be revealed in February.

, making it the first Move-based blockchain and third Layer 1 supported on the platform. This gives Phantom’s 15 million users access to SUI, enabling them to send, receive, swap, and interact with Sui-based tokens and dApps. Sui has rapidly grown, reaching over $2 billion in TVL and becoming a major destination for Ethereum outflows. Phantom's CEO praised Sui’s scalability and user experience, aligning with their multichain vision. The integration marks a significant step in expanding Sui’s adoption and accessibility.

Yesterday, BTC Spot ETFs recorded $120.4M in inflows, entirely from non-GBTC funds.

 tasks to boost Grass points, offering up to 30% in bonuses. Users can earn boosts by swapping $10K on Lifinity, trading meme coins on Fighthorse, or betting $1K on Skate x Polymarket. These points may play a key role in the Eclipse airdrop.

Phantom Wallet Integrates Sui, Expanding Access for 15 Million Users

Bybit Learn

Crypto

Ledger and Trezor are the two most well-known cold wallet brands out there, but how do they compare? In this article, we take a look at how they do.

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In the rapidly evolving world of cryptocurrencies, the concept of a 

 plays a crucial role in securely managing digital assets. As its name suggests, a crypto wallet functions similarly to a physical wallet, but instead of holding cash and cards, it stores private keys, public keys and other essential information necessary for accessing and managing various cryptocurrencies.

To store your cryptocurrencies, you essentially have two options. You could use software wallets, also known as hot wallets, where your crypto is stored online — for example, through an exchange. You could also use hardware wallets. 

Hardware (physical) wallets are also known as cold wallets or cold storage. Two of the most prominent cold wallets are Trezor and Ledger.

In this article, we’ll explore everything you need to know about the similarities and differences between these two hardware wallets as well as their pros and cons so that you know which one suits you better.

A crypto wallet serves as a digital storage and management system for cryptocurrencies, enabling users to store, send and receive digital assets in a secure and user-friendly manner.

Crypto wallets provide a gateway to the decentralized realm of cryptocurrencies, empowering individuals to take control of their financial transactions and participate in a peer-to-peer (

Crypto wallets come in various forms, catering to the diverse needs and preferences of users. They can be broadly categorized into two main types: 

. Hot wallets, including desktop, mobile, and web-based options, are applications or platforms that are installed on computers or mobile devices. On the other hand, cold wallets are physical devices designed specifically to secure cryptocurrencies offline, offering enhanced protection against online threats.

Regardless of the type, crypto wallets share a common purpose: to facilitate the storage and management of cryptocurrencies and interaction with them. However, it's important to note that crypto wallets do not physically store the digital currencies themselves, as cryptocurrencies exist on a blockchain network. Instead, they store the 

 required to access and manage the funds associated with specific blockchain addresses.

So why exactly use hardware wallets instead of software wallets?

As suggested, hardware wallets offer you a way of storing private keys without the risk of your data being stolen or manipulated.

You may wonder: Why not just use a software wallet and simply secure my device? You can do that, but computer malware can be disguised as a legitimate software program and trick you into authorizing access to your computer. It may even get past your antivirus. 

Additionally, no one can access a hardware wallet without your permission. A hardware wallet operates offline, offering greater security for your private keys. Thus, using a hardware wallet is safer because it prevents hackers from accessing your private keys and stealing your cryptocurrency.

Cold wallets are physical hardware (like USB flash drives). They usually have a hard plastic case surrounding a small screen that distributes the information. In order to access your private keys, you’re required to set up a PIN. When you set up for the first time, the PIN is a list of around (generally) 12 to 24 words. This set of words is known as the 

Write down the seed phrase and keep it somewhere safe, because if you lose your cold wallet or it becomes corrupted, you’ll need this seed phrase to re-access your crypto. You can then complete transactions with ease and simply confirm them through your hardware.

 was launched in 2014 by a French company of the same name. The company was founded to find an optimal solution for securing private keys when performing transactions on a blockchain. 

Over the years, Ledger has launched a few products along with Ledger Live. One of its most successful products is the Ledger Nano S, released in 2016. Back then, Ledger Nano S was known as the “original hardware wallet.” It was priced economically at $59, and could be used to purchase, secure and manage cryptocurrencies. 

 was released in 2019 at the price of $149. The Nano X is an advanced model of the Nano S, with improved features such as more battery power, bluetooth communication (end-to-end encrypted), mobile usage and a bigger screen.

 to replace the Ledger Nano S. The Ledger Nano S Plus is by far Ledger’s best model, thanks to its affordable price tag of $79 and its myriad features such as bluetooth connectivity, large capacity, wide range of coin support, advanced security and easy setup. The Ledger Nano S Plus also differs from its predecessor as it’s DeFi- and NFT-friendly. With the introduction of the Ledger Nano S Plus, Ledger eventually 

Ledger will soon be releasing another product known as the 

 in the spring of 2023. Pre-orders have already closed for the $279 Ledger hardware device, but interested customers can opt to sign up for email notifications and be informed when the Ledger Stax becomes available for purchase. 

Both existing models of the Ledger are widely used, and the one that will suit you will depend on your needs. If you’re more likely to hold your cryptocurrencies over the long term, Ledger Nano S Plus might be suitable for you. However, if you actively (daily) trade cryptocurrencies, then you might find Ledger Nano X to be the better choice. 

, centered around user identification. This feature enables users to safeguard a backup of their recovery seed phrase, offering a way to regain access to their private keys if they ever lose their recovery phrase. However, Ledger has faced substantial criticism from users who perceive this development as a direct contradiction to the fundamental principles of noncustodial wallets. Additionally, the recovery service necessitates the submission of government-issued identification, resulting in KYC registration for each user. 

Ledger has attempted to assure users that their private keys and crypto funds are safe, and that the feature is an optional one that isn’t automatically enabled. However, users are still concerned about the security of their assets, as they believe the existence of such a feature can create vulnerability to potential attacks.

With the resulting backlash over the past week, Ledger has announced on its 

 that the company has taken the crypto community’s feedback into consideration and will be 

 of the Ledger Recover feature. Charles Guillemet, the chief technology officer of Ledger 

 stating that a white paper on the Recover Protocol will be released “in the coming days” to “bring more verifiability to everything” the company does. 

 is based in the Czech Republic. As with Ledger, the purpose of this hardware wallet is to keep private keys offline and secure from potential hackers on the internet.

As the first hardware wallet ever released, Trezor has paved the way for the formation of other cold wallets. However, Trezor has established itself as one of the most eminent and safe cold wallets. The two models for purchase are the 

Trezor One was released in July 2014 at the affordable price of $69. It has a 128×64 pixel, bright OLED screen that can display all the details required for a user to verify a transaction, and it comes with two buttons for navigation. In terms of connectivity, it uses a micro USB connector and is equipped with a 120-MHz embedded ARM processor (Cortex-M3). It supports over 1,000 cryptocurrencies.

The Trezor Model T is the updated model of Trezor Model One and costs $219. While Trezor Model One remains the more popular purchase among the two, Trezor Model T has more features that increase the efficiency of this cold wallet. The most significant new feature on the Trezor Model T is its 1.54” color LCD touchscreen.

Both the Ledger and the Trezor have made it much easier to securely store private keys. However, while the two are similar, they also have their differences. We’ll briefly compare and contrast these two hardware wallets so you’ll know which one suits you.

Trezor supports more than 1,000 cryptocurrencies, while Ledger supports over 5,500 digital assets.

When it comes to the basic models — Trezor Model One vs. Ledger Nano S Plus — the latter is superior in that it supports more altcoins. In addition, Trezor One doesn’t support some major and popular cryptocurrencies, such as 

 (XTZ). Only the Trezor Model T supports them, but it’s also more expensive.

There hasn’t been any reported case where Trezor or Ledger has failed to protect people’s data. Both wallets require a pin code and seed phrase to let you access your crypto wallet. Ledger also has a Secure Element chip to 

. The only way you’ll be vulnerable is if you write your seed phrase on a computer or other smart device that gets hacked (or otherwise share the seed phrase). So both the Ledger and Trezor wallets are safe to use. 

Of course, as mentioned above, there are doubts about Ledger’s security, due to its recent launch of Ledger Recover. However, since the company has decided to delay the launch of the feature and to instead accelerate its open-sourcing road map, users may feel more at ease when deciding whether or not to purchase Ledger. 

On the other hand, Trezor is open-source, which allows people to see the source codes and redistribute or modify them. This means bugs can be identified more easily, but there’s also a slightly enhanced security risk.

Both Ledger and Trezor are very simple to use. The basic models, Trezor Model One and Ledger Nano S Plus, have a two-button system. Once you learn how to operate it, it’s very easy to access your crypto wallet.

In addition to Ledger Nano S Plus, Ledger Nano X also has a two-button system. 

Trezor Model T, on the other hand, is free of buttons and has a touchscreen. It’s much easier to use as compared to the two-button version.

So the Trezor Model T has the upper hand when it comes to ease of use.

Price plays a key role when you want to decide which brand to buy.

The Ledger Nano S Plus costs around $79, while Trezor Model One costs around $69. The difference between the two is minor.

The upgraded models are certainly more expensive. While the Ledger Nano X costs around $149, the Trezor Model T costs approximately $219. The difference in price between the pair is greater than with the basic models. However, the Trezor Model T doesn’t have any major advantages over the Ledger Nano X to justify this difference. 

Moreover, the Ledger Nano X offers Bluetooth connectivity, and the Trezor Model T doesn’t. So the $70 difference in price isn’t reasonable.

In terms of price, Ledger has the obvious edge over Trezor.

When it comes to the size of a hardware wallet, it depends on personal choice. Both the Ledger and Trezor are relatively small and easy to carry around. 

However, if you prefer a smaller, flash drive–style hardware, then Ledger is the choice for you.

If you want something that’s about the same size as car keys, then Trezor is the solution for you.

The Ledger Nano X has a stainless steel cover, which makes it very durable.

Both Trezor wallets have a plastic cover, which makes them less durable than Ledger. Of course, you can purchase silicone cases to protect your Trezor hardware, but that still doesn’t make Trezor as durable as Ledger. 

So Ledger takes the crown as the more durable hardware wallet.

A good display is important when it comes to reading crypto addresses, since every detail of a transaction should be carefully checked. 

When it comes to screen display, Trezor has a larger screen than Ledger. Many users consider this a huge benefit, because the information is more organized and easily comprehensible.

Moreover, the Trezor Model T comes with a colorful touchscreen that makes the display superior and much easier to use as opposed to the upcoming Ledger Stax’s E Ink touchscreen.

So when it comes to their displays, Trezor has the edge.

To conclude, both Trezor and Ledger are useful and safe options if you want to store cryptocurrencies. Whether one is better than the other depends on your personal preferences.

If you want a greater number of supported cryptocurrencies, cheaper hardware, smaller size and more durability, then Ledger might be the better choice for you.

If you want a better display, slightly more security, bigger size and easier-to-use hardware, then Trezor may be the better choice for you.

Interested in buying Ledger or Trezor? Ensure that you only do so through their official websites. If you don’t buy from secure websites, you run the risk of purchasing fake and malicious hardware wallets. 

Looking to purchase cryptocurrencies and store them in your newly-bought hardware wallets? 

Ledger vs. Trezor: Which Is Better?

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards