U.S sovereign wealth fund sparks market comeback

Trump’s wave of tariffs and a subsequent trade war caused panic in the crypto market as a number of major tokens dropped by more than 25% over the weekend, reversing most of the gains made since pre-U.S. election in early November. Most majors are down 40-50% in the past month, data shows, making it one of the steepest dives in recent years.

Then, in a show of strength, the markets recovered quickly following an executive order from Trump to create a U.S. sovereign wealth fund, led by both the Treasury and Commerce Departments, who are now both run by pro-crypto secretaries. Whilst no mention of crypto was made, diversifying into crypto could be under consideration by the U.S. government, who have shown their support for digital assets since Trump’s arrival. The market has since consolidated with Bitcoin just under $100k, Solana at the $200 mark and Ethereum at $2,700.

Elsewhere, El Salvador has continued bolstering its Bitcoin reserves despite agreeing to pull back on its crypto plans following a loan deal with the IMF. The nation’s President, Nayib Bukele, recently passed a bill to reform the country's Bitcoin law to qualify for an $1.4 billion loan from the IMF, changing its laws to make Bitcoin acceptance in the private sector “voluntary”. El Salvador has purchased 52 Bitcoin in 2025 so far, boosting its total holdings to 6,055 Bitcoin, which is now valued at nearly $600 million.

Finally, Tether, the world’s largest stablecoin issuer and creator of USDT, reported record profits of over $13 billion for 2024, essentially doubling its profits from 2023. USDT is the industry’s most widely-used stablecoin and its network is set to further grow, with an expansion to Bitcoin’s base layer and Lightning, a Bitcoin scaling network, announced last week by Tether CEO Paolo Ardoino at a Bitcoin conference in El Salvador.