Web3 Research Weekly Report｜This week the market continued to fluctuate with ups and downs due to external influences; the U.S. Department of Justice has withdrawn the Crypto Assets division.

Weekly Overview

This week, the cryptocurrency market has been significantly affected by external factors, with U.S. tariff issues leading to a sharp decline in mainstream capital markets. However, subsequent additional statements have driven a rebound in the markets, including U.S. stocks and the cryptocurrency market. During this process, although the fluctuations in mainstream cryptocurrencies are quite evident, the overall market has still shown considerable resilience.

This week, most mainstream cryptocurrencies in the market have shown a volatile downward trend. Due to the impact of tariff issues, the cryptocurrency market has clearly declined. The subsequent adjustment announcement brought a short-term rebound, but the overall market trend for the week is still in a downward state. In the short term, once the tariff issues are finalized, the market will welcome a key turning point.

Overall, the market experienced a significant short-term decline immediately after opening this week, with major cryptocurrencies dropping to recent price lows, showing a general downtrend. However, as external news factors influenced the market, there was some recovery in the middle of the week. Despite this, the external factors remain complex. As we approach the end of the week, the market has once again entered a clear downward channel, with the possibility of further declines ahead.

This week, the price of BTC has fluctuated significantly. Currently, after a rebound, the price has dropped again, coming near the $79,500 level. The subsequent trend is likely to continue to be heavily influenced by external factors, mainly following the mainstream market trends.

The weekly price trend of ETH is consistent with BTC, currently showing a short-term downtrend. The weekly price high is around $1680, while the weekly price low has dropped to about $1418, and it has now entered a clear downward channel again.

This week, the price trends of major mainstream cryptocurrencies are mainly characterized by fluctuations and declines. Currently, the overall market capitalization of the cryptocurrency market has decreased compared to the same period last week, reaching around $2.53 trillion, with a decline of about 3.55% in the last 24 hours. The current price of BTC is around $79,518. The current price of ETH is maintained around $1,516.

This week, the overall cryptocurrency market is in a fluctuating downward channel, with most mainstream coins showing a declining trend, while a few have seen price increases. The coin with the highest increase this week is XCN, which reached around 90% over the week, mainly due to its proactive measures in response to Trump's tariff policy, resulting in a significant short-term price rise.

This weekend, the overall cryptocurrency market is expected to continue its volatile trend, with rapid rises and falls likely to remain within a certain range. The rise and fall of major cryptocurrencies will be more influenced by external news factors.

Crypto Market

🔥 Cloverpool data shows that the Bitcoin mining difficulty experienced an adjustment at block height 891,072 (Beijing time April 5 21:50:26), with a difficulty increase of 6.81% to 121.51T, setting a new historical high.

🔥According to Eleanor Terrett, White House officials revealed that federal agencies must report their cryptocurrency holdings to Treasury Secretary Scott Bessent by April 7, Eastern Time. However, the executive order only requires the report to be submitted to Bessent and does not mandate public disclosure of the audit results. It is currently unclear whether or when this information will be made public.

🔥Crypto analyst Miles Deutscher tweeted in support of Bitcoin, firmly believing that Bitcoin will reach a new ATH between the third quarter of this year and the first quarter of 2026.

🔥According to CoinDesk, amidst the turmoil in the U.S. stock market caused by tariffs, Bitcoin has remained stable recently, exciting market participants about the potential of this cryptocurrency as a safe-haven asset. However, the possibility of a significant downturn in the short term cannot be ruled out, especially as the "basis trading in the U.S. bond market" faces risks due to increased volatility in bond prices.

🔥CryptoQuant founder and CEO Ki Young Ju posted on X platform that the Bitcoin bull market cycle has ended.

🔥 Robert Kiyosaki, the author of "Rich Dad Poor Dad," recently posted on social media that the global economic crisis is no longer a threat of the future, but a problem in reality.

🔥According to Bitcoin Magazine, GameStop's Bitcoin investment plan is named "Project Rocket." Previously, on April 2, after completing a $1.3 billion five-year convertible bond issuance, GameStop(GME) may be about to start or has already started purchasing Bitcoin (BTC).

🔥According to Bitcoin Laws, a resolution proposed by Democrats in the Georgia House suggests that the state Department of Education introduce educational content related to "blockchain, cryptocurrencies, and Web3" in K-12 (from kindergarten to 12th grade) curricula.

🔥Arthur Hayes tweeted that Bitcoin holders need to learn to embrace tariff policies, and perhaps Bitcoin has finally broken its correlation with Nasdaq, becoming the purest "smoke alarm" for fiat liquidity.

🔥According to Decrypt, Tether CEO Paolo Ardoino stated that he does not mind if USDT is banned in the U.S. due to new regulatory regulations. Tether is actively considering creating a new stablecoin registered in the U.S. and will comply with the upcoming U.S. stablecoin laws.

🔥Bitcoin experienced a plunge of 10% within 24 hours this week due to the ongoing impact of President Trump's trade war on the global market.

🔥 The Trump family crypto project World Liberty Financial has released a governance proposal, planning to airdrop a small amount of stablecoin USD1 to all $WLFI holders through an on-chain system to test its airdrop functionality and thank early supporters.

🔥According to Bitcoin.com, Jack Dorsey, CEO of the Bitcoin technology company Block, stated in the Presidio Bitcoin podcast "21 in 21" that despite Bitcoin's development to date, it may still fail due to the possibility of losing relevance in solving the original design issues.

🔥Galaxy Digital announced that it has received approval from the U.S. Securities and Exchange Commission (SEC) for its S-4 registration statement, marking a key stage in the process of relocating its registration from the Cayman Islands to Delaware, USA, and planning to list on NASDAQ.

🔥According to CoinDesk, as the crypto market reacted to President Trump's tariff policies in the traditional financial market over the past few days, Bitcoin plummeted to a five-month low, hitting a low of $74,500, which is a cumulative decline of one-third from the historical high reached on January 20.

🔥Crypto analyst Eugene stated that he made his first purchase of spot BTC when the price of BTC approached $75k, marking his first operation since liquidating his main holdings in January.

🔥 The extensive tariffs implemented by the Trump administration may lead to a collapse in the demand for Bitcoin mining machines in the United States, benefiting mining operations outside of the U.S. as manufacturers will look for markets outside the U.S. to sell their excess inventory at lower prices.

🔥 According to The Block, despite the recent tariffs imposed by US President Donald Trump, which has caused significant turmoil in both crypto and traditional markets, analysts at Bernstein & Co. noted that "bitcoin has shown remarkable resilience."

🔥Messari CEO Eric Turner and Sygnum Bank co-founder Thomas Eichenberger stated during a panel discussion at Paris Blockchain Week that they expect a significant shift in the banking sector's participation in cryptocurrency in the second half of this year.

🔥According to a report by Fortune magazine, the U.S. Department of Justice notified its employees on Monday evening that it is disbanding a department specifically responsible for cryptocurrency-related investigations. In a four-page memo reviewed by Fortune, Deputy Attorney General Todd Blanche announced this decision, stating, "The Department of Justice is not a digital asset regulatory agency. However, the previous administration utilized the Department of Justice to implement a reckless regulatory strategy through prosecutions."

🔥Bernstein analysts believe that the current decline of Bitcoin is more resilient than the declines seen during previous crises. Analysts cite historical data indicating that in past crisis periods (such as the market panic triggered by the COVID-19 pandemic, interest rate shocks, etc.), Bitcoin experienced drops of 50% to 70%. "The current price trend (a decline of 26%) suggests that Bitcoin demand is coming from more resilient capital.

🔥The strategy disclosed in the 8-K filing submitted to the SEC under "Business Risks" reveals that the company faces significant financial pressure. If the market value of Bitcoin drops significantly, it may be forced to sell Bitcoin at a price lower than its cost to fulfill obligations, and could even face risks of default, bankruptcy, or liquidation.

🔥According to a report released by CoinDesk, Standard Chartered Bank stated on Tuesday that the price of Ripple's XRP token could rise to $12.50 before U.S. President Trump leaves office.

🔥According to Fortune magazine, cryptocurrency payment company Ripple has acquired major brokerage firm Hidden Road for $1.25 billion, aiming to expand the services it offers to institutional investors.

🔥According to Cryptoslate, well-known cryptocurrency lawyer James Murphy (@MetaLawMan) has filed a lawsuit against the U.S. Department of Homeland Security (DHS) under the Freedom of Information Act (FOIA). He has filed a lawsuit against the U.S. Department of Homeland Security (DHS) under the Freedom of Information Act (FOIA).

🔥According to the Strait Times, Singapore's cryptocurrency ownership rate reached 26% in 2024, up from 24.4% the previous year. Generation Z and Millennials (ages 16 to 44) are the main user groups, with about 40% holding crypto assets, and more than half using them for online shopping and payments.

🔥 Analysts point out that Bitcoin has significantly reduced risk as it approaches the closing period, with nearly 80% of the periodic price adjustments completed. As the market gradually stabilizes, Bitcoin may soon end the current downward cycle, bringing a more stable outlook for investors.

🔥Farside Investors released the Bitcoin mining output update for March 2025: all major listed mining companies have announced their data, marking a record month since the Bitcoin halving, with a total of 3,648 Bitcoins mined.

🔥According to The Block, Bitcoin and other major cryptocurrencies fell on Wednesday after Trump implemented additional tariffs.

🔥Ledn co-founder reveals that the cost of Bitcoin-backed loans will significantly decrease globally, aiming to enhance the competitiveness of the crypto lending market. This trend may drive more institutions and individuals to adopt BTC collateralized financing, while also promoting further integration between DeFi and traditional finance. Specific interest rate adjustment plans and implementation timelines have not yet been announced.

🔥According to CoinDesk, credit rating agency Moody's pointed out in a report on Wednesday that while the tokenization of funds is thriving, the serious risks that accompany it cannot be ignored by investors.

🔥According to Decrypt, cybersecurity company Kaspersky has discovered a new type of cryptocurrency scam malware that alters wallet addresses in the clipboard.

Regulation & Macroeconomic Policy

🔥 Mark T. Uyeda, acting chairman of the U.S. Securities and Exchange Commission (SEC), instructed agency staff on Saturday to review several previously issued employee statements regarding the application of laws on cryptocurrency investments and digital asset securities, TheBlock reported. This directive was issued pursuant to Executive Order 14192 (titled "Promoting Prosperity Through Deregulation") and in response to the recommendations of the Department of Government Efficiency (DOGE).

🔥The U.S. Securities and Exchange Commission's Division of Corporation Finance has issued a statement regarding stablecoins, indicating that under current regulations, certain types of crypto assets (i.e., "Covered Stablecoins") do not qualify as securities. Individuals involved in the "minting" and exchange process of stablecoins are not required to register these transactions with the Commission under the Securities Act, nor do they need to comply with any of the registration exemption provisions of the Securities Act.

🔥The U.S. Securities and Exchange Commission (SEC) has announced the agenda and panel member list for its April 11 roundtable meeting, themed "Dilemma: Tailoring Regulations for Cryptocurrency Trading."

🔥The Hong Kong Securities and Futures Commission has officially released guidelines related to staking for licensed virtual asset trading platforms and recognized virtual asset funds, which state that licensed virtual asset trading platforms are allowed to provide staking services, including staking for virtual asset spot ETFs.

🔥According to a report by Fortune, new documents submitted by investment advisors under the regulations of the U.S. Securities and Exchange Commission (SEC) reveal the assets under management (AUM) of various companies.

🔥 The U.S. Department of Justice has released an official statement regarding cryptocurrency laws, stating that developers will not be held liable, while criminals using the code will be held accountable. This clarifies that developers are not responsible for the misuse of code by criminals, and law enforcement is shifting its focus towards actual criminal activities such as fraud and terrorism financing. The memorandum emphasizes the protection of the rights of legitimate blockchain users and businesses, supports fair access to banking services, and reduces law enforcement actions against cryptocurrency trading platforms and mixing services. This move may signal the Trump administration's further easing of restrictions on the cryptocurrency industry, injecting new vitality into the sector.

🔥 The U.S. Department of Justice memo states that it will essentially stop regulating virtual currency exchanges and offline wallets. The memo instructs prosecutors to focus on cryptocurrency cases related to Cartel coins and terrorism.

🔥According to Cryptoslate, the Australian Securities and Investments Commission (ASIC) announced on April 7 that the Federal Court has approved its request to close 95 companies related to cryptocurrency scams and pig butchering, due to improper conduct and false registration, and thus they are to be dissolved.

🔥The U.S. House of Representatives held a hearing to discuss legislation on the structure of the cryptocurrency market, marking an important step forward for the bill. Lawmakers debated the regulatory framework for digital assets, aiming to establish clear rules for cryptocurrency exchanges and token issuance. This hearing paves the way for final legislation that could change the regulatory landscape of the U.S. crypto industry. Supporters of the bill believe it will bring more certainty and investor protection to the market.

🔥According to Bitcoinist, Swedish MP Rickard Nordin has urged the finance minister to diversify foreign exchange reserves to include Bitcoin.

🔥Caroline D. Pham, acting chair of the U.S. Commodity Futures Trading Commission (CFTC), expressed support for the Department of Justice's announcement to terminate the policy of regulating the cryptocurrency industry through prosecutions, and instructed the CFTC not to file lawsuits in cases related to digital assets where the defendant lacks subjective intent based on violations of the registration provisions of the Commodity Exchange Act.

🔥 Caroline Pham, acting chair of the U.S. Commodity Futures Trading Commission (CFTC), praised the Department of Justice's recent announcement to terminate its policy of regulating the digital asset industry through litigation, and instructed CFTC staff to follow the president's executive order and the Department of Justice's new guidelines on digital asset enforcement.

🔥The EU securities market regulator - European Securities and Markets Authority (ESMA) Executive Director Natasha Cazenave stated at a hearing in the European Parliament that although the current share of crypto assets in the global financial system is still less than 1%, the "spillover effects" on traditional finance are limited. However, the scale of the crypto market is expected to double in 2024, reaching 3.3 trillion euros, and the connection between institutions and traditional finance is rapidly deepening.

Highlights of the Cryptocurrency Market

⭐️In the past week, the overall cryptocurrency market has been significantly influenced by external factors. The global capital markets have been severely impacted by tariff issues, but the crypto market has remained relatively resilient, showing a warming trend again in a short period. In the past week, mainstream coins have primarily experienced continued short-term fluctuations, with only a small number of coins seeing an increase. The current market is still in a downward channel, and the current trend is expected to continue until key external information is determined.

⭐️This week, the XCN cryptocurrency leads the rise among mainstream coins with an increase of around 90%, mainly due to the coin's proactive response to recent events regarding Trump's tariff policy, and strong community engagement, with bullish sentiment prevailing externally. Currently, the XCN price hovers around $0.01688, with a weekly high of about $0.017. It is currently in a short-term volatile trend, with a slight price decline. !

Bitcoin & Ethereum Weekly Performance

Bitcoin (BTC)

( Data Source: TradingView )

This week, the price of BTC showed a rapid decline after the opening, reaching a recent low of around 74400 USD, followed by a short-term fluctuation state. After a key turning point due to tariff issues, the BTC price quickly rose in a short period, again exceeding 80000 USD, but has currently entered a new price range, maintaining rapid fluctuations around the 79500 USD level. The price trend of BTC this week has demonstrated strong resilience against shocks, and in the future, the BTC price will continue to follow the overall market trend, significantly influenced by key external news factors.

Ethereum (ETH)

( Data source: TradingView )

The price trend of ETH this week has generally maintained a consistent relationship with BTC, but the frequency of short-term fluctuations has been relatively smaller. The weekly price peak of ETH was around $1790 during the opening period. After being impacted by tariff issues, the ETH price fell to around $1400, and in the following short period, it even dropped below the $1400 level. Currently, the ETH price has risen above $1500 again and is continuing to fluctuate, with expectations that it will stay within the current range over the weekend.

Web3 Project Trends

This week, the total market value of seven categories of projects continues to decline across the board, but the drop is somewhat moderated compared to last week. The overall market is significantly affected by ongoing tariff issues, showing a clear downward trend. Recently, the market as a whole has been greatly influenced by external factors, and it is expected that the current price trend will be maintained during the weekend closing period.

| Project Category | Weekly Change | Top Three Tokens by Weekly Increase | Overview | | ------------ | ------------ | ------------ | ------------ | | Layer 1 | -4.7% | XCN, MET, WEMIX | The market capitalization of the Layer 1 sector has seen a certain decline this week, with XCN being the main coin that performed relatively well among the top coins. Overall, most projects have shown a noticeable decline this week. | Layer 2 | -7.6% |MANA3,ZRC,KONET|The Layer 2 track has seen a significant decline this week, with only a few coins rising mainly driven by a few leading tokens, while the majority of coins are down. | DeFi | -6.5% | BABY,VERSE,VSP | The market capitalization of the DeFi sector has seen a certain decline this week, with the increase in top-performing coins being highly unbalanced, primarily dominated by a few specific coins, while most coins in the sector are showing a downward trend.| | NFT | -5.5% | MTRM,GUM,DG | The total market value of NFTs has seen a decline this week, with the leading rising coins showing a relatively even distribution of gains, while most coins in the sector are primarily down. | MEME | -6.1% | MINDS,GME,BRITTO| The MEME coin sector has seen a slight decline this week, with leading rising coins continuing from last week's TOP coins, primarily characterized by price corrections.| | Liquid Staking | -13.0% | SDL,URO,SARA | This sector experienced a significant decline this week, showing an overall downward trend. The leading rising cryptocurrencies maintained their gains within a small range, with a relatively even distribution. | AI | -6.5% | MINDS,VDA,$HWTR| The AI sector has seen a significant decline this week, with the gains in leading coins concentrated in a few specific currencies, and the overall trend being a price pullback. The entire sector is heavily influenced by fluctuations in the overall market.

Author: Charles T., Gate.io researcher *This article only represents the author's views and does not constitute any trading advice. Investment carries risks, and decisions should be made with caution. *The content of this article is original and the copyright belongs to Gate.io. If you need to reprint it, please indicate the author and source, otherwise legal responsibility will be pursued.