The cryptocurrency market experienced significant volatility this week, with Bitcoin rebounding to near $95,000 amid renewed "Trump Trade" momentum. Galaxy Research reveals that four major U.S. banks are preparing to offer cryptocurrency custody services, while Kenya announces plans to legalize digital assets—marking a pivotal moment for mainstream crypto adoption.
👉 Discover how institutional adoption is reshaping crypto markets
U.S. Banking Giants to Offer Bitcoin Custody Services
Galaxy Research reports that the Office of the Comptroller of the Currency (OCC) will enable four global custodial banks to provide digital asset services:
- New York Mellon Bank (BNY Mellon)
- State Street Bank
- JPMorgan Chase
- Citibank
These institutions collectively manage over $12 trillion in assets. Even a 1% capital inflow from these banks into cryptocurrencies could dramatically increase market capitalization.
Key Developments:
- BlackRock recently recommended 1-2% Bitcoin allocations in investment portfolios
- Galaxy predicts wealth management platforms will soon advise ≥2% Bitcoin allocations
- Ethereum expected to rebound strongly in 2025 with ETH/BTC ratio potentially doubling
Kenya's Crypto Legalization Framework
Kenyan Finance Minister John Mbadi announced groundbreaking legislation to regulate virtual assets:
Policy Highlights:
- Creates fair market conditions for crypto service providers
- Balances innovation with risk management (AML/CFT compliance)
- Follows December 2023 policy draft on Virtual Asset Service Providers (VASPs)
👉 Learn about emerging markets embracing crypto
Historically cautious, Kenya now joins 8.5% of its population already using cryptocurrencies according to UN data.
Bitcoin Market Analysis
Price Action:
- Recovered from $90K support level
- Leveraged long positions saw $107M liquidations
- Futures show 11% annualized premium (slightly bullish)
Macro Factors:
- Potential Trump-era crypto executive orders
- Debate over SEC's SAB 121 accounting rules
- Growing institutional demand (only 35% of US advisors currently offer crypto access)
FAQs
Q: Which banks will offer Bitcoin custody?
A: BNY Mellon, State Street, JPMorgan Chase, and Citibank plan to launch services this year.
Q: Why is Kenya legalizing crypto now?
A: To capitalize on financial innovation while implementing safeguards against illicit activities.
Q: What's driving Bitcoin's price recovery?
A: Institutional adoption signals, macroeconomic policies, and strong $90K-$92K support levels.
Q: How will Ethereum perform in 2025?
A: Galaxy predicts ETH/BTC ratio may double by year-end, boosted by DeFi regulatory clarity.
Q: What percentage of portfolios should be Bitcoin?
A: Major firms suggest 1-2%, with some platforms potentially recommending higher allocations soon.
Market Outlook
As traditional finance institutions embrace digital assets and developing nations establish regulatory frameworks, cryptocurrency markets are entering a new phase of legitimacy. The convergence of banking infrastructure with blockchain technology creates unprecedented opportunities for investors and financial systems worldwide.