Web3 Research Weekly Report | This week the market continues to fluctuate due to external influences; the U.S. Department of Justice has abolished the Crypto Assets department.

Quick Facts of the Week

This week, the cryptocurrency market has been significantly impacted by external factors. The U.S. tariff issues led to a sharp decline in mainstream capital markets, but subsequent additional statements boosted the recovery of markets, including U.S. stocks and the cryptocurrency market. Throughout this process, although the volatility of mainstream coins is quite evident, the overall market has still demonstrated considerable resilience.

This week, most mainstream cryptocurrencies in the market showed a trend of fluctuating decline. Due to the impact of tariff issues, the crypto market has clearly declined. The subsequent adjustment statements brought about a short-term rebound, but the overall market trend for the week still remains in a downward state. In the short term, the market will welcome a key turning point once the tariff issues are finally resolved.

Overall, the market index experienced a sharp short-term decline right after the opening this week, with major cryptocurrencies dropping to recent price lows, showing a general downtrend across the board. However, as external news factors began to influence the market, there was a certain recovery trend in the middle of the week. Yet, the related external factors remain complex. As we approach the end of the week, the market has clearly entered a downward channel again, with a possibility of further decline ahead.

This week, the price of BTC has fluctuated significantly. Currently, after a brief recovery, it has dipped again to around the price level of 79,500 USD. The subsequent trend is likely to continue being heavily influenced by external factors, primarily following the mainstream market trends.

The price trend of ETH over the past week has been consistent with BTC, currently showing a short-term downward trend. The weekly price high was around $1680, while the weekly price low dropped to about $1418. It has now entered a clear downward channel again.

This week, the price trends of key mainstream cryptocurrencies have mainly been fluctuating downwards. 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 remains around $1,516.

This week, the crypto market as a whole is in a volatile downward channel, with most of the mainstream currencies showing a downward trend, and a few prices rising. The largest increase in the top currency this week was XCN, which reached about 90% in a week, mainly due to the currency's relatively positive response to Trump's tariff policy, which made the short-term price rise obviously.

The cryptocurrency market is expected to continue its volatile trend this weekend, with rapid fluctuations likely to occur within a certain range. The rise and fall of major cryptocurrencies will largely depend on the impact of external news factors.

Crypto Market

🔥 Cloverpool data shows that the Bitcoin mining difficulty adjustment occurred 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 the public disclosure of the audit results. It is currently unclear whether or when this information will be made public.

🔥Crypto analyst Miles Deutscher tweeted his support for 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 US 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 US Treasury market" faces risks due to increased volatility in bond prices.

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

🔥 The author of "Rich Dad Poor Dad", Robert Kiyosaki, recently posted on social media that the global economic crisis is no longer a future threat, 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 buying Bitcoin (BTC).

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

🔥Arthur Hayes tweeted that Bitcoin holders need to learn to embrace tariff policies; perhaps Bitcoin has finally broken its correlation with NASDAQ and become the purest "smoke alarm" of fiat liquidity.

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

🔥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's 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 this day, 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 critical stage in its process of relocating its registration from the Cayman Islands to Delaware, USA, and planning to list on NASDAQ.

🔥According to CoinDesk, as the cryptocurrency market began to correct a few days after responding to President Trump's tariff policies in the traditional financial market, Bitcoin plummeted to a five-month low, hitting a minimum of $74,500, which is a cumulative decline of one-third from the historical high set on January 20.

🔥 Crypto analyst Eugene stated that he purchased spot BTC for the first time when the BTC price approached $75k, marking his first operation since liquidating major 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 U.S., which will benefit mining operations outside the U.S., as manufacturers will look for markets outside the U.S. to sell their excess inventory at cheaper prices.

🔥According to The Block, despite the recent tariffs imposed by U.S. President Trump causing significant turmoil in both the cryptocurrency and traditional markets, analysts at Bernstein noted that "the resilience of Bitcoin is nothing short of stunning."

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

🔥According to 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, U.S. Deputy Attorney General Todd Blanche announced the decision, stating, "The Department of Justice is not a digital asset regulatory agency. However, the previous administration used the Department of Justice to implement a reckless regulatory strategy through prosecution."

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

🔥Strategy disclosed in the 8-K filing submitted to the SEC under "Business Risks" that the company faces significant financial pressure, and if the market value of Bitcoin declines significantly, it may be forced to sell Bitcoin at a price lower than the cost to fulfill obligations, and may 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.

🔥 Crypto payments company Ripple acquired prime brokerage Hidden Road for $1.25 billion, aiming to expand its services to institutional investors, according to Fortune magazine.

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

🔥According to the Straits Times, the cryptocurrency ownership rate in Singapore will reach 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 cyclical price adjustments completed. As the market gradually stabilizes, Bitcoin may soon end the current downtrend, bringing a more stable outlook for investors.

🔥Farside Investors releases the Bitcoin mining production 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 took additional tariff measures.

🔥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-backed financing while promoting further integration of 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 accompanying 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.

Regulatory & Macroeconomic Policy

🔥According to TheBlock, Mark T. Uyeda, the 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 securities laws to cryptocurrency investments and digital assets. This directive was issued in response to Executive Order 14192 (titled "Promoting Prosperity Through Regulatory Relief") and in response to recommendations from the Department of Government Efficiency (DOGE).

🔥The U.S. Securities and Exchange Commission's Division of Corporation Finance issued a statement regarding stablecoins, indicating that under current regulations, certain types of crypto assets (i.e., "Covered Stablecoins") are not considered securities, and individuals involved in the "minting" and exchanging of stablecoins do not need to register these transactions with the Commission under the Securities Act, nor are they required to comply with one of the exemptions from registration under the Securities Act.

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

🔥 The Hong Kong Securities and Futures Commission officially issued guidelines regarding the staking of licensed virtual asset trading platforms and recognized virtual asset funds, stating 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 in accordance with 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 on cryptocurrency laws, stating that developers will not be held responsible, and criminals using the code will be held accountable. This clarifies that developers are not responsible for the misuse of code by criminals, with law enforcement shifting focus to actual criminal activities such as fraud and terrorist financing. The memorandum emphasizes protecting the rights of legitimate blockchain users and businesses, supporting fair access to banking services, and reducing enforcement actions against cryptocurrency trading platforms and mixing services. This move may signify the Trump administration's further easing of restrictions on the cryptocurrency industry, injecting new vitality into its development.

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

🔥According to a report by Cryptoslate, the Australian Securities and Investments Commission (ASIC) announced on April 7 that the federal court has approved its request to shut down 95 companies related to cryptocurrency fraud and Ponzi schemes, as these entities were found to engage in misconduct and false registration, thus they are being 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 engaged in debates regarding the regulatory framework for digital assets, aiming to establish clear rules for cryptocurrency exchanges and token issuances. 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 this will bring more certainty to the market and protect investors.

🔥According to Bitcoinist, Swedish MP Rickard Nordin has requested the Finance Minister to diversify foreign exchange reserves by including Bitcoin.

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

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

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

Highlights of the Cryptocurrency Market

⭐️In the past week, the overall cryptocurrency market has been greatly affected by external factors. The global capital market has been severely impacted by tariff issues, yet the crypto market has shown resilience, with a brief recovery trend emerging. Over the past week, mainstream cryptocurrencies have mainly experienced short-term fluctuations, with only a small number of coins seeing an increase. Currently, the market is still in a downward channel, and it is expected that this trend will continue until key external information is confirmed.

⭐️This week, the XCN cryptocurrency market ranked first among major coins with an increase of about 90%, mainly due to the proactive measures taken by this coin in response to recent events regarding Trump's tariff policy, coupled with significant community enthusiasm and prevailing bullish sentiment. Currently, the price of XCN is around $0.01688, with a weekly high of about $0.017. It is currently in a state of short-term volatility, with a slight decrease in price.

Bitcoin & Ethereum Weekly Performance

Bitcoin (BTC)

( Data Source: TradingView )

This week, the price of BTC showed a rapid decline after opening, reaching a recent low of around $74,400, followed by a short-term fluctuation. After a key turning point due to tariff issues, the price of BTC quickly rose within a short period, climbing back above $80,000. However, it has now entered a new price range, maintaining rapid fluctuations around the $79,500 level. The price trend of BTC has demonstrated strong resilience this week, and in the future, BTC prices 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 been roughly consistent with BTC, but the frequency of short-term fluctuations is relatively smaller. The weekly high for ETH was around $1790 during the opening period, but after being impacted by tariff issues, the price of ETH dropped to around $1400, and in a short time even fell below the $1400 level. Currently, the price of ETH has risen again to above $1500 and is continuing to fluctuate, with expectations that it will remain within the current range over the weekend.

Web3 Project Trends

This week, the total market value of seven types of projects continued to decline across the board, but the drop was less severe compared to last week. The overall market has been significantly affected by tariff issues, and the downward trend is quite evident. Recently, the market has been largely influenced by external factors, and it is expected that the current price trend will be maintained appropriately during the weekend closing period.

| Project Category | Weekly Change | Top Three Tokens by Weekly Increase | Overview | | ------------ | ------------ | ------------ | ------------ | | Layer 1 | -4.7% | XCN,MET,WEMIX | The total market value of the Layer 1 sector has decreased this week, with XCN being the best-performing cryptocurrency among the leading tokens. Overall, most projects have shown a noticeable decline this week. | Layer 2 | -7.6% |MANA3,ZRC,KONET| The Layer 2 sector has seen a significant decline this week, with only a few cryptocurrencies rising, mainly among a handful of top coins, while the majority of coins are down. | DeFi | -6.5% | BABY,VERSE,VSP | The total market value of the DeFi track has seen a certain decline this week, with the gains of top rising cryptocurrencies being extremely unbalanced, primarily dominated by a few cryptocurrencies, while most cryptocurrencies in the track are experiencing declines.| | NFT | -5.5% | MTRM,GUM,DG | The total market value of NFTs experienced a decline this week, with the top rising coins showing a relatively even distribution in gains, while most coins in the sector mainly decreased. | MEME | -6.1% | MINDS,GME,BRITTO| The MEME coin sector has seen a certain decline this week, with the leading rising coins continuing last week's TOP coins, mainly characterized by price retracement.| | Liquid Staking | -13.0% | SDL,URO,SARA | This sector saw a significant decline this week, overall showing a downward trend, with the leading rising cryptocurrencies maintaining a relatively small range of increases, distributed quite evenly.| | AI | -6.5% | MINDS,VDA,$HWTR| The AI sector saw a significant decline this week, with the top rising coins' gains concentrated in a few specific coins, and the overall price retraction being the main trend. The entire sector is greatly affected by the 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, please indicate the author and source; otherwise, legal responsibility will be pursued.