The crypto market showed signs of recovery this week following the implementation of a temporary ceasefire between Iran and Israel. This geopolitical de-escalation reduced risk perceptions and led to renewed inflows into risk-on investments. Bitcoin rebounded above $106,000, with Ethereum closely following. Institutional investors repositioned their portfolios in response to the changing macroeconomic context.
Derivatives markets saw an increase in short-term positions, indicating expectations of continued volatility. Sentiment indicators such as the Bitcoin Fear & Greed Index shifted toward “greed.” These developments underscore how geopolitical news can swiftly influence crypto markets, particularly through sentiment-driven and allocation changes among large investors.
The Federal Housing Finance Agency (FHFA) has instructed Fannie Mae and Freddie Mac to include crypto assets in mortgage assessments. These two government-sponsored entities are formally known as the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FMCC). They were created to enhance liquidity and stability in the mortgage market by purchasing loans from lenders and repackaging them into securities for the secondary market.
Incorporating crypto into mortgage applications marks a significant step for crypto holders and coincides with a recent statement by Federal Reserve Chair Jerome Powell, who expressed support for crypto-related activities by banks. Recognizing crypto as a legitimate asset class opens new opportunities for lenders and enhances the credibility of digital assets within traditional financial systems. Banks and fintech companies can now develop innovative loan models without requiring consumers to liquidate their crypto holdings.
Texas has established a Bitcoin reserve funded by a public investment of $10 million, becoming the first U.S. state to actively purchase BTC using taxpayer money. While Arizona and New Hampshire have passed crypto-related legislation, neither has made active purchases nor allocated public funds. Texas is creating a separate fund under the management of the state comptroller, guided by expert advisors.
This move may encourage other states such as Florida and Wyoming to consider similar initiatives. It remains to be seen which other countries may follow this model, but Texas’s strategy sets a precedent for integrating digital assets into public financial planning.
Coinbase and Kraken secured MiCA licenses this week via Luxembourg and Ireland, respectively. These approvals allow them to offer regulated crypto services across all 30 European Economic Area (EEA) countries. MiCA (Markets in Crypto-Assets Regulation) enforces uniform standards for transparency, capital requirements, and consumer protection, enabling scalable and compliant service offerings.
For Coinbase, this provides strategic latitude beyond the U.S., where regulatory pressure is increasing. Kraken aims to use the license to accelerate its European expansion, particularly among institutional clients. Both exchanges significantly enhance their standing within the regulated European crypto market.
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